Cambodia's nationwide residential property price index (RPPI) fell by 3.67% year-on-year in nominal terms (and 4.87% after inflation adjustment), according to official data from the National Bank of Cambodia (NBC) compiled by Global Property Guide.
The persistent softening reflects prolonged cautious sentiment, with nationwide property prices declining for 29 consecutive months amid constrained domestic spending and strict bank credit evaluation standards.
Price Indices, Supply Expansion, and Regional Dynamics
• Capital and Provincial Price Trends: In Phnom Penh, the RPPI dropped 4.52% year-on-year (down 5.7% adjusted for inflation), marking nine straight months of annual contraction. Across provincial markets, the residential index fell by an average of 3.49% (-4.69% in real terms) over the same period.
• Supply Expansion Across Segments: The total condominium inventory in Phnom Penh expanded to approximately 80,000 units by the end of 2025. Mid-range units constitute over 50% of supply, affordable units represent 25%, and high-end/prime developments account for the remaining 20%. Landed property supply (Borey) reached around 180,000 units, heavily weighted toward affordable and mid-tier developments.
• Rental Yield Resilience: Cambodia continues to offer robust gross rental yields averaging 7.54% nationwide. In Phnom Penh, yields averaged 6.5% (ranging between 5.22% and 7.4%), while coastal markets such as Kampot/Kep recorded 7.04% and Sihanoukville/Koh Rong averaged 6.55%.
• Mortgage Contraction and Lending Rate Reductions: Total outstanding residential mortgages decreased by 8.5% year-on-year to KHR 24.72 trillion (approximately $6.17 billion), accounting for 12.1% of national GDP. Concurrently, borrowing costs softened: weighted average interest rates on new loans fell to 8.61% for USD loans (down from 9.39% in 2024) and 8.76% for KHR-denominated loans (down from 11.32% in 2024).
Government Tax Incentives & Policy Timeline
• Transfer Tax Exemption Extension Through 2026: Under Notification No. 001 issued on January 16, 2026, the Ministry of Economy and Finance formally extended the 4% transfer tax exemption through December 31, 2026. First-time buyers of landed homes or condominiums valued at or below $210,000 receive a 100% tax exemption, with properties above $210,000 receiving a $210,000 base deduction. For second homes and beyond, exemptions apply to the first $70,000.
• Capital Gains Tax Postponement: The implementation of the 20% Capital Gains Tax (CGT) on immovable property has been officially delayed until January 1, 2027, supporting ongoing market stabilization.
Important Notice Points
• Price Contraction: Residential prices decreased 3.67% nationwide (-4.87% inflation-adjusted) and 4.52% in Phnom Penh.
• Transfer Tax Relief: Full exemption on the 4% stamp duty for first-time purchases up to $210,000 extended through end-2026.
• Capital Gains Tax Deferral: The 20% real estate capital gains tax has been postponed to January 1, 2027.
• Declining Lending Rates: New term loan interest rates dropped to 8.61% (USD) and 8.76% (KHR).
• Rental Yields: Maintained a strong national average of 7.54%, with Phnom Penh averaging 6.5%.
Overall, Cambodia's residential property market in 2026 continues its phase of price recalibration and inventory absorption, while lower borrowing rates alongside extended government tax incentives provide critical cost relief for end-users and help anchor medium-term market stability.
Overall, Cambodia's residential property market in 2026 continues its phase of price recalibration and inventory absorption, while lower borrowing rates alongside extended government tax incentives provide critical cost relief for end-users and help anchor medium-term market stability.
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