Economy: Cambodia ranked as one of the best countries in ASEAN to invest in property

Cambodia has been ranked as one of the best countries in the ASEAN region to invest in property in 2025, according to a report by regional investment magazine InvestAsian.

Phnom Penh. Photo CG

According to the magazine, the country stands out for its attractive entry prices for international investors, its favourable legislative environment and its strong economic growth trajectory. Cambodia's emergence as ASEAN's leading real estate investment destination in 2025 would be driven by a combination of economic resilience, affordability and demographic trends.

GDP projections indicate that the Kingdom's economy is expected to grow by 6.3% in 2025, driven by sectors such as tourism, manufacturing and infrastructure development.

Cambodia aims to attract 7.5 million international tourists by 2025, up from 6.7 million in 2024, thanks to infrastructure projects such as Techo international airport and the expansion of the port of Sihanoukville.

Affordability and competitive pricing are also key factors contributing to Cambodia's ranking. The report notes that, compared with other ASEAN markets, the Kingdom offers a very competitive cost of entry for buyers.

In Phnom Penh, foreigners can buy condominiums in attractive areas of the capital for just $2,000 per square metre, far more affordable than Bangkok and Ho Chi Minh City, and a fraction of the cost of condominiums in downtown Kuala Lumpur, which start at around $3,500 per square metre. And let's not forget Singapore, where condominium buyers can expect prices of around $20,000 per square metre in the city centre.

The cost of accessing Phnom Penh is therefore significantly lower than in other cities in the region.

Tax incentives, such as stamp duty exemptions for first-time buyers and the deferral of capital gains tax until 2025, contribute to this affordability.

Financial investment policies and the legal framework also contribute to Cambodia's ranking. Foreigners can own 70% of condominium units through condominium titles, while land ownership remains limited.

Cambodia's modernisation efforts aim to mitigate risks, but challenges remain, such as rural infrastructure that remains underdeveloped and non-performing loans in the construction sector.

In conclusion, the Cambodian property market in 2025 presents a compelling mix of affordability, growth potential and demographic advantages. Despite risks such as regulatory unpredictability and oversupply, the country's economic fundamentals and modernisation efforts position it as a resilient investment location. Investors with a long-term horizon and an appetite for the dynamics of frontier markets have everything to gain.