One USD 120,000 Apartment or Two USD 60,000 Apartments in Cambodia?

Prepared by the NovAsia Editorial Team

An investor has USD 120,000.

That capital can purchase:

• one strong two-bedroom;
• one large one-bedroom in a better project;
• two smaller apartments at approximately USD 60,000 each.

At first glance, two apartments appear safer. One tenant leaves while the other continues paying. The owner can sell half the portfolio instead of liquidating everything. Two doors seem to provide diversification.

A second unit also introduces:

• another furniture package;
• another air conditioner;
• another tenancy;
• another vacancy cycle;
• another set of repairs;
• another management relationship.

Where both apartments are in the same building and target the same tenant, diversification may exist only on paper.

The correct comparison is not “one door or two”. It is which risks are separated, which costs are multiplied and which exit strategy the investor actually needs.

This article provides general analytical information, not individual investment, legal or tax advice.

Define what is being diversified

Diversification works when a poor result in one asset does not necessarily repeat in the other.

Two apartments in different districts, different buildings and different price segments may respond differently to demand.

Two identical units on adjacent floors share most risks:

• same developer;
• same completion date;
• same management company;
• same service charge;
• same location;
• same foreign quota;
• same tenant profile;
• same unsold inventory;
• same building reputation.

The owner has two tenants, but not two independent assets.

Useful diversification can occur at several levels.

Tenant diversification

Income is not dependent on one lease.

Unit diversification

Different sizes or layouts attract different users.

Building diversification

A problem in one condominium does not affect the other.

Location diversification

Districts respond differently to infrastructure, schools, offices and supply.

Timing diversification

Projects complete in different years, spreading final payments, furnishing and rental launch.

Two units are valuable only where the investor knows which of these levels has genuinely been achieved.

One stronger apartment may be a different product

A USD 120,000 apartment is not necessarily a scaled-up version of a USD 60,000 unit.

It may offer:

• better building;
• stronger management;
• rarer layout;
• open view;
• lower density;
• larger local buyer pool;
• family suitability;
• corporate tenant appeal.

A well-designed large one-bedroom or compact two-bedroom can attract couples, families and longer-term tenants who are less focused on the lowest monthly rent.

The owner also has:

• one furniture package;
• one lease;
• one inspection cycle;
• one manager;
• one resale transaction.

The concentration risk remains. If the unit is vacant, rental income falls to zero. A serious building problem affects the full investment. A partial cash exit is difficult.

One apartment makes sense where the additional capital purchases genuine quality and scarcity, not merely more square metres and more expensive decoration.

Two smaller units provide flexibility, not free safety

The main advantage of two apartments is that decisions can be separated.

The owner can:

• sell one and retain one;
• rent one long term and hold the other for resale;
• renovate one without stopping all rent;
• use one personally;
• refinance one while leaving the other unencumbered.

A lower individual price can broaden the resale market.

The trade-off is that the lower-priced segment is often the most competitive. Developers build many small studios and one-bedrooms for investors.

After handover, owners may list dozens of nearly identical apartments with the same furniture, photographs and rental expectations.

The owner has more flexibility and more direct competition at the same time.

Fixed costs do not divide in half

Some costs depend on area or price. Others arise for every individual unit.

Per-unit costs can include:

• booking and SPA administration;
• legal review;
• international transfer;
• furniture;
• appliances;
• photography;
• tenant placement;
• cleaning between leases;
• small household inventory;
• insurance;
• repair coordination;
• sale and registration.

Service charge may depend mainly on area. Two apartments totalling 80 square metres may cost roughly the same as one 80-square-metre apartment, although building rules can include minimum charges.

Furniture behaves differently.

Two small apartments require:

• two beds;
• two refrigerators;
• two washing machines;
• two television sets;
• two kitchen setups;
• two internet installations.

The cost is not half simply because the purchase price is half.

Many costs are multiplied rather than divided.

Compare vacancy at portfolio level

Assume:

• one apartment rents for USD 800 per month;
• two smaller units rent for USD 450 each.

Without vacancy:

The two-unit strategy appears USD 1,200 ahead.

Now add vacancy.

One large apartment is empty for one month:

USD 800 × 11 = USD 8,800

One small unit is empty for two months and the other for one month:

USD 450 × 10 + USD 450 × 11 = USD 9,450

The difference falls to USD 650 before the extra furniture, maintenance and management burden.

The lesson is not that one apartment is always better.

The lesson is that a small gross-rent advantage can disappear quickly.

Two tenants smooth income but increase operating events

With one apartment, the year may involve one tenant, one deposit, one repair cycle and one move-out.

With two apartments, the chance that something happens in at least one unit is higher.

During the same year:

• one tenant may request repairs;
• one may renew;
• one may leave;
• one may pay late;
• one air conditioner may fail.

Cash flow can be smoother because not all income stops at once.

Operational activity is higher.

For an overseas owner, this matters. Two units can remain manageable where a competent manager handles them. They may become disproportionately time-consuming where the owner personally approves every small issue.

Two buildings create stronger diversification and more complexity

Buying in different projects separates building-specific risk.

A lift failure, management dispute or special assessment in one building does not automatically affect the other.

The portfolio may combine:

• completed unit with proven rent;
• off-plan unit with longer-term upside;
• central one-bedroom;
• lower-priced local-demand unit;
• different completion dates.

The owner also inherits:

• two developers;
• two SPAs or title files;
• two managers;
• two service-charge systems;
• two rental markets;
• two resale procedures.

Diversification reduces concentration but increases oversight.

A second weak project should not be purchased merely to satisfy a mathematical preference for two assets.

Different completion dates can protect liquidity

Two off-plan units completing at the same time can create one large cash demand.

The owner may need to fund simultaneously:

• final instalments;
• handover;
• legal registration;
• furniture;
• defect correction;
• service charge;
• initial vacancy.

Where completion dates differ, those demands are spread.

Rent from the first unit may support the second.

The trade-off is that the owner remains exposed to construction and payment administration for longer.

Timing diversification helps liquidity, but does not automatically improve the underlying property quality.

Partial exit is a genuine advantage

One USD 120,000 apartment cannot be sold in a 40% portion.

Where the owner needs USD 60,000, they must:

• sell the whole apartment;
• refinance;
• wait;
• accept a larger transaction than necessary.

With two apartments, one can be sold and one retained.

This is valuable where personal liquidity needs can arise unpredictably.

The benefit has two parts:

1. The portfolio is divisible.
2. Each unit is individually liquid.

The first is automatic. The second is not.

A small unit in an oversupplied project may require a large discount despite the lower price.

A higher-priced unit can have a narrower but less price-sensitive market

A large apartment requires a more affluent buyer and can take longer to sell.

Its buyer may choose based on:

• layout;
• family use;
• privacy;
• view;
• quality;
• building reputation.

A small investor unit is often compared mainly through price and yield.

Where many substitutes exist, the seller competes through discount.

A rare two-bedroom may receive fewer enquiries but preserve value better. Two studios may attract more viewers but face stronger substitution.

Liquidity is not only the number of potential buyers. It is how easily those buyers can replace the unit with another one.

Tax and registration are transaction-specific

Each purchase and sale has its own legal and tax process.

Cambodia applies stamp duty or transfer tax and annual property tax under the relevant rules. Incentives and exemptions can depend on:

• property value;
• first or subsequent purchase;
• developer registration;
• timing;
• buyer status.

National Bank of Cambodia reporting on 2025 measures noted continuation of certain stamp-duty support into 2026.

A two-apartment strategy may not receive the same treatment on both purchases.

Two assets also mean:

• two registrations;
• two due-diligence files;
• potentially two sale commissions;
• two exit procedures.

Do not assume the tax is simply doubled or automatically identical.

Collateral flexibility

A completed apartment with acceptable title may potentially be used as collateral.

One USD 120,000 asset can support a larger loan, but the full asset becomes encumbered.

Two separately titled units can allow the owner to pledge one and keep the other unencumbered.

Actual financing depends on:

• bank;
• borrower;
• title;
• income;
• nationality;
• project.

The structural flexibility exists only where each unit is independently bankable.

Tenant diversification requires different products

Buying two identical studios and renting them to the same audience is limited diversification.

A stronger combination may be:

• one-bedroom for a single professional;
• two-bedroom for a couple or family;
• completed unit with current rent;
• off-plan unit;
• central property;
• lower-priced local-demand unit.

Different products require different knowledge.

A family unit is judged through schools, storage and long leases. A small investment unit is judged through price and direct competition.

Diversification should not become a collection of unrelated apartments. Each unit needs an independent investment case.

Two weak units are not safer than one strong unit

Portfolio arithmetic can create false comfort.

If both low-priced units have:

• weak title;
• poor layout;
• excessive unsold stock;
• bad management;
• dependence on one foreign-sales channel;
• inflated rental assumptions;

the investor has multiplied the same problem.

One strong unit can be safer than two weak ones despite concentration.

The decision sequence should be:

1. Select investable properties.
2. Compare their economics.
3. Decide whether portfolio splitting adds value.

Starting with “I must buy two” allows quantity to dominate quality.

Worked comparison

Assume two strategies with the same initial purchase capital.

The two-unit strategy produces only USD 130 more in this simplified example, despite USD 1,200 more headline rent.

The assumptions are illustrative, not a market forecast.

The proper method is:

1. Model each unit separately.
2. Include the full setup cost.
3. Combine the net results.
4. Stress-test vacancy and repair years.

Scenario analysis

At minimum, test three scenarios.

Normal market

Both strategies achieve expected rent and ordinary costs.

Weak rental market

The larger apartment is vacant for three months.

Under the two-unit strategy, one unit is empty for six months while the other remains leased.

Building problem

Management deteriorates or a special assessment is imposed.

Where both units are in one building, the problem affects both simultaneously.

Where they are in different projects, building diversification has real value.

Also test urgent sale:

• What can be raised by selling one small unit?
• What discount is required to sell the large unit?
• Does the owner have enough reserve to avoid selling during a weak market?

Who may prefer one apartment?

One stronger property may suit an investor who:

• wants lower operational complexity;
• has identified a rare unit;
• targets a longer-term tenant;
• does not need partial exit;
• maintains a strong cash reserve;
• prioritises building and unit quality.

This is not automatically the conservative choice. The concentration remains.

Who may prefer two apartments?

Two units may suit an investor who values:

• partial exit;
• two independent leases;
• different buildings or districts;
• staggered completion dates;
• lower individual resale prices;
• separate strategies.

The keyword is independent.

Two neighbouring units offer less diversification than one completed apartment and one off-plan unit in different market segments.

Conclusion

One USD 120,000 apartment versus two USD 60,000 apartments is a decision about risk structure rather than a universal yield formula.

One asset concentrates capital but may provide stronger quality, scarcity and simpler management.

Two assets divide tenant risk and allow partial sale, while increasing fixed costs and operational work.

Real diversification requires meaningful differences in building, location, product, tenant or timing.

The decision should be based on:

• net cash flow;
• full setup cost;
• vacancy scenarios;
• management burden;
• individual resale liquidity;
• owner reserve.

The number of doors does not improve an investment by itself.

Sources

1. National Bank of Cambodia — Financial Stability Review 2025.
2. General Department of Taxation of Cambodia — current stamp-duty and property-tax materials.
3. RICS — Valuation Global Standards incorporating International Valuation Standards, effective 31 January 2025.
4. RICS — Comparable Evidence in Real Estate Valuation.
5. Realestate.com.kh — Cambodia Condo Investment Guide 2026, used as supplementary market context.

Frequently asked

Are two apartments always safer than one?

No. They reduce dependence on one tenant and allow the owner to sell part of the portfolio, but can double furniture, maintenance, repairs and management work.

Is there real diversification if both apartments are in the same project?

Only to a limited degree. Tenant risk is divided, but the developer, building management, location, foreign quota and wider market remain common.

Which strategy produces a higher return?

That depends on acquisition price, rent actually collected, vacancy and costs. Two inexpensive units do not automatically produce more net income than one stronger apartment.

Which is easier to sell: one expensive apartment or two smaller units?

A lower total price can broaden the buyer pool, and two assets allow a partial exit. However, mass-market units may compete with many near-identical listings.