Is Now a Good Time to Buy Property in Cambodia?

Investors looking at Cambodia in 2026 see a confusing picture. National price indices are still drifting down, but prime Phnom Penh condos and borey homes are quietly recovering. GDP growth has slowed relative to the post-COVID rebound, yet the government has just extended tax incentives and delayed the capital gains tax on real estate until 2027.

This guide does not answer “yes” or “no” in one line. Instead, it gives you a simple framework: how the market really looks in 2026, how policy supports or slows it, and how to decide based on your time horizon, segment, and financing.

The Mixed Signals in 2026

Headline indices show a market still in correction. National residential prices have fallen for more than two years, with low single-digit declines reported in early 2026. Phnom Penh’s index is weaker than the national average, pulled down by older and oversupplied condo stock that built up during the previous boom.

Segment data tells a different story. Prime condos in core districts such as BKK1 and Tonle Bassac have seen asking prices rise by around mid-single digits year-on-year, with values above 2,800 dollars per square meter in the best projects. At the same time, borey and landed homes around Phnom Penh are driving a 30 percent plus rebound in total home sales. Condos in weaker locations and coastal towers with heavy oversupply are still under pressure. In short: averages are down, but the right segments are stabilizing or rising.

Macro and Policy Backdrop

Cambodia’s economy has cooled from “fast growth” to “normalized growth.” Regional and multilateral forecasts now place GDP growth in the mid single digits, with some estimates closer to 3 percent and others around 5 to 6 percent, depending on assumptions about tourism, energy, and property. That is slower than the 6 to 7 percent years before 2020, but still positive relative to many neighboring countries.

Policy has turned supportive for real estate. The government has officially postponed the 20 percent capital gains tax on immovable property until January 1, 2027, while CGT on shares, leases, and other assets has been in effect since 2026. At the same time, a 4 percent stamp duty (transfer tax) exemption for qualifying first-time buyers of borey and condo units under 210,000 dollars has been extended through the end of 2026. Together, these measures create a genuine “window” where disposals of property are not yet subject to CGT and entry costs are lower for first-time buyers in the middle-class segment.

Decision Framework: Time, Segment, Financing

Rather than asking “good time or bad time,” it is more useful to ask three questions:

1. Time Horizon: Short vs Long

• Short term (0 to 3 years): The market is still working through oversupply and slower credit. Short-term price moves are unpredictable, and transaction costs (even with incentives) are meaningful. Buying purely for a quick flip is high risk in most segments.
• Medium to long term (5 to 10 years): If you assume Cambodia continues to grow, infrastructure keeps improving, and policy remains reasonably supportive, owning good assets through this slower phase can make sense, especially where yields are stronger than in neighboring markets. Tax treatment on disposals stays favorable until 2027.

2. Segment: Prime Condos vs Borey vs Land in Corridors

• Prime condos in core Phnom Penh: Better-located, better-managed projects in BKK1, Tonle Bassac and selected riverfront areas show rising prices and realistic net yields in the 4.5 to 6 percent range, higher than typical net yields in Bangkok or Ho Chi Minh City. These are suitable for investors focused on rental income and capital preservation, as long as they choose projects and developers carefully.
• Borey and landed homes: Borey housing is the most active segment, supported by Cambodia’s growing middle class and extended stamp duty incentives for qualifying buyers. It suits investors who want exposure to domestic demand and a longer hold, and owner occupiers who care more about lifestyle and family use than about foreign investor sentiment.
• Land in growth corridors: Land along new infrastructure routes such as the airport corridor, Ring Road 3 and emerging belts around Phnom Penh has appreciated sharply over the past decade, with some plots moving from tens to hundreds of dollars per square meter. Land is a long-term, higher-risk play: it does not generate yield on its own, but it can capture infrastructure-led upside if roads and services are delivered as planned.

3. Financing: Cash vs Mortgage

• Cash buyers: Tighter lending standards and slower growth in mortgage balances mean buyers who do not need bank financing can move faster and negotiate harder, especially in the condo segment. Cash purchases avoid approval delays and sometimes unlock better discounts, particularly in prime projects where developers prefer certainty.
• Mortgage buyers: Financing remains available, but banks are more cautious, especially for higher-risk exposures. Mortgage buyers need to factor in stricter eligibility tests and slower processing times. That does not make purchases impossible; it just means planning and realistic expectations matter more than before.

Who Should Buy Now, and Who Should Wait

Putting the pieces together, buying now makes the most sense for investors and buyers who match some or all of these profiles:

• You have a medium to long-term horizon and are not relying on a quick flip.
• You are targeting prime condos in core Phnom Penh, borey homes in stronger corridors, or land with a clear infrastructure story, rather than fringe or oversupplied towers.
• You are prepared to buy in cash or with conservative leverage, and you have done basic due diligence on the developer and project.

Waiting or moving more slowly may make sense if:

• Your main plan is short-term speculation, or you need high certainty about near-term price movements.
• You are drawn to high headline yields in coastal or fringe markets, but you are new to Cambodia and have not yet built local experience.
• You depend fully on bank financing and have little flexibility if lending standards tighten further.

If you fit the “buy now” profile and want to explore concrete options, you can start with our overview of ready to move in properties, where pricing and occupancy are visible today. For investors comfortable with a longer runway and staged payments, our selection of off plan properties covers prime and growth corridor projects.

To understand the tax side of the decision, read our explainer on the capital gains tax deferral on real estate, and for a district-level view of Phnom Penh, we recommend our guide to Phnom Penh’s best areas. For a deeper dive into developer quality, you can use our article on developer distress risk alongside our investment guides for foreign buyers.

Frequently Asked Questions

Is 2026 generally a good or bad time to invest in Cambodia property?

It is neither universally good nor universally bad. The national index is down, but prime condos, borey homes and land in key corridors are already stabilizing or rising. It is a selective, two-speed market where segment and location matter more than the headline.

Will slower GDP growth hurt property values?

Slower growth reduces easy gains, but it does not automatically mean falling prices. Cambodia’s economy is still expanding, and policy support and infrastructure investment create a backdrop in which solid assets can perform over a five- to ten-year horizon, even if weaker segments struggle.

How important is the capital gains tax deferral to my decision?

It should be treated as a helpful factor, not the only reason to buy. The deferral gives you time to plan exits without the new 20 percent tax on property gains until 2027, and combined with stamp duty relief it improves net returns, especially for shorter holds. But asset quality and location still matter more than tax alone.

Should first time buyers focus on borey or condos?

First time homebuyers who plan to live in the property often find borey housing more suitable, especially with stamp duty exemptions on qualifying units. Yield-focused investors and expats may prefer prime condos in core districts, where rental demand and liquidity are stronger.

Are cash buyers really at an advantage right now?

Yes. Cash buyers avoid mortgage approval delays and can negotiate better on price or terms in some cases. In a market where lending is more cautious, the ability to close quickly and cleanly is a genuine advantage.