Best Phnom Penh Neighbourhoods for Property Investment in 2026

Prepared by the NovAsia Editorial Team

There is no single Phnom Penh neighbourhood that combines the lowest purchase price, the highest rent and the fastest resale market.

BKK1 is strongest for international tenants and established urban infrastructure. Tonle Bassac offers a balance between central access and newer developments. Toul Tom Poung provides a lower entry point and appeal to younger renters. Toul Kork is better aligned with family demand, while Chroy Changvar and Sen Sok are longer-term bets on the city’s expansion.

For investors, the district name matters less than the micro-location. Travel time to the tenant’s office or school, congestion at the nearest intersection, road access, competing units in the building and eligibility for foreign ownership can matter more than the administrative boundary.

Two properties in the same district can perform more differently than two apartments in neighbouring districts.

BKK1 and Chamkarmon are no longer the same administrative area

Older property materials often describe BKK1 as part of Chamkarmon. Historically that was correct, but Boeung Keng Kang became a separate administrative district in 2019.

Today:

• BKK1, BKK2 and BKK3 are in Khan Boeung Keng Kang;
• Tonle Bassac, Toul Tom Poung and Phsar Daeum Thkov are in Chamkarmon.

This distinction matters commercially as well as administratively. A property marketed as “in Chamkarmon” is not necessarily in BKK1 or close to the embassy area. Chamkarmon is large and contains premium, mid-market and more local micro-locations.

Quick neighbourhood map

The central lesson is that a prime address works only when the purchase price is supported by the tenant’s actual ability and willingness to pay.

What is happening in Phnom Penh’s condominium market in 2026?

Knight Frank reported that completed condominium stock in Phnom Penh reached 63,334 units by the end of 2025. The market has gone through a correction: buyers have become more price-sensitive and developers have shifted from speculative high-end projects towards more practical and affordable units.

This changes how investors should evaluate neighbourhoods. A weak apartment in a famous district can underperform a more affordable, well-designed unit with a clear tenant profile.

Knight Frank also highlights the concentration of serviced apartments in central districts:

• Boeung Keng Kang accounts for around 31% of existing stock;
• Daun Penh for around 24%;
• Chamkarmon for around 20%.

This confirms the strength of central demand, but it also reveals intense competition among landlords.

Future supply is increasingly shifting towards Sen Sok, Chamkarmon, Chroy Changvar and Mean Chey. For investors, this creates both a lower entry opportunity and a risk of too many similar units entering the market.

BKK1: Phnom Penh’s best-known international district

BKK1 remains the easiest Phnom Penh neighbourhood for many international tenants to understand. It contains embassies, international organisations, restaurants, cafés, gyms, offices and serviced apartments. Daily life is more walkable than in many other parts of the city.

Demand comes from:

• employees of international companies;
• diplomats and NGO professionals;
• entrepreneurs;
• tenants moving to Phnom Penh for the first time;
• professionals working in the central business area.

BKK1’s main advantage is not necessarily the highest yield. It is that landlords do not have to explain the location to prospective expatriate tenants. The district is already recognised and the tenant pool is broader than in many outer areas.

The disadvantages are equally real. Land and new-build prices are higher, roads are congested and serviced-apartment supply is substantial. A private owner competes not only with other condominium landlords but also with professionally managed serviced residences that include reception, cleaning and maintenance.

Time Square 9, a project currently represented by NovAsia Estate, starts at approximately $1,700 per square metre in BKK1. This is one project example, not a district average. BKK1 also contains cheaper resale units and much more expensive premium developments.

Who may prefer BKK1?

BKK1 can be rational for buyers with a budget from roughly $100,000 who prioritise a central address, international tenants and long-term ownership. It is less compelling when the goal is the highest possible percentage return from the lowest possible capital.

BKK2 and BKK3: central access at a lower price, but street quality varies

BKK2 and BKK3 sit beside BKK1 but usually offer lower rents and a less consistent urban environment. These areas contain local houses, smaller apartment buildings, shops and streets with very different access conditions.

Tenants often choose them because they want to remain close to the centre without paying the BKK1 premium. The usual tenant profile includes younger professionals, freelancers, teachers and long-term expatriates.

The investment advantage is the possibility of obtaining a central location at a lower purchase price. The risk is the significant difference between individual streets. A unit near Monivong Boulevard or a practical commuting route can perform well, while an apartment in a narrow alley with poor vehicle access may require a rent discount.

Investors should review the street in the evening as well as during the day, and check noise, drainage, parking and actual travel time to BKK1.

Tonle Bassac: modern central living without BKK1’s density

Tonle Bassac is close to BKK1, Koh Pich and major business corridors. The area contains many newer condominiums and serviced apartments, international restaurants, offices and large commercial developments.

The typical tenant is a professional, couple or family seeking a central location with a newer layout and a somewhat calmer environment.

APS Cambodia describes Tonle Bassac as a balanced alternative to BKK1. In some developments, buyers may obtain more space or a newer unit for a comparable price.

The main risk is paying a premium simply for the Tonle Bassac label. Micro-locations near Norodom Boulevard, Bassac Lane, Koh Pich and more local streets have different rental demand. A river or open-land view should not be assumed to be permanent without checking neighbouring development parcels.

Toul Tom Poung: more affordable, lively and highly dependent on the exact street

Toul Tom Poung, commonly associated with Russian Market, attracts younger foreigners, freelancers, small-business owners and long-term renters. The area has cafés, local retail, restaurants and more affordable apartments than BKK1.

For investors, it can offer one of the better compromises between central access and purchase price. Tenants can reach BKK, Chamkarmon and central offices without paying prime central rent.

The district’s weakness is inconsistency. A modern condominium may sit beside older housing, narrow streets and uneven infrastructure. Drainage and vehicle access matter during the rainy season, while market, school and commercial noise may affect the tenant pool.

Compact one-bedroom units usually fit the area better than expensive large apartments unless a school or another source of family demand is nearby.

Phsar Daeum Thkov: a quieter, lower-cost entry into Chamkarmon

Phsar Daeum Thkov lies south of the most expensive central neighbourhoods and usually offers a lower entry price while maintaining access to BKK1, Toul Tom Poung and major roads.

Kingston Royale, currently represented by NovAsia Estate, offers selected one-bedroom units from around $40,000 in this part of Chamkarmon. This refers to specific off-plan units, not the district’s average price.

The likely tenant base is broader and less premium: younger professionals, couples, local tenants and foreigners willing to give up walking access to BKK1 in exchange for lower rent.

The investment risk is assuming rapid neighbourhood appreciation. A lower price does not mean the area will quickly become equivalent to BKK1. Rent should be modelled using current comparables, while new surrounding supply should be reviewed separately.

Daun Penh and Riverside: historic centrality with mixed building quality

Daun Penh includes the administrative and historic centre, Riverside, Wat Phnom and the area around Central Market. It contains banks, government offices, tourist attractions, offices and restaurants.

The district suits tenants who prioritise central work locations, river access or tourism-related activity. Knight Frank estimates that Daun Penh contains around 24% of Phnom Penh’s existing serviced-apartment stock, second only to Boeung Keng Kang.

Investors must distinguish among a new condominium, a serviced apartment and an older unit without a clear foreign-ownership title. New strata-title projects are less common in the historic centre, making legal due diligence especially important.

Riverside can benefit from tourist demand, but it is more seasonal and more sensitive to short-term rental rules. Night-time activity, noise and the condition of older buildings can reduce the long-term tenant pool.

Toul Kork: family demand and larger apartments

Toul Kork is a calmer, lower-density area northwest of the centre. It contains international schools, universities, offices, villas, gated communities and condominiums.

The core tenant profile includes families, company managers, teachers and local buyers who need more space and parking. This makes the district better suited to two- and three-bedroom apartments than to a large concentration of identical studios.

Knight Frank estimates Toul Kork’s share of existing serviced-apartment stock at roughly 10%. It is significant without being as saturated as the core central districts.

The advantage is lower density and family demand. The disadvantage is lower walkability, car dependence and a narrower tenant base for small investment units.

Chroy Changvar: river views and a longer investment horizon

Chroy Changvar is a peninsula between rivers, linked to central Phnom Penh by bridges. It attracts large-scale projects, waterfront views and lower land costs.

It is not a direct substitute for BKK1. Rental demand depends more heavily on the individual project, management quality and daily bridge crossings. Congestion can turn a short map distance into a long commute.

Knight Frank estimates that Chroy Changvar may account for around 14% of future condominium supply. That is a meaningful pipeline, so buying purely for the view or master plan is risky. Investors need to compare competing projects and identify a genuine reason for tenants to live on the peninsula.

The area generally suits buyers with a seven-year or longer horizon who accept that demand may develop gradually.

Sen Sok and Mean Chey: city growth rather than central-city demand

Sen Sok is expanding around shopping centres, new roads, gated communities and family housing. Mean Chey and southern corridors contain more affordable mass-market developments.

Knight Frank expects Sen Sok to be one of the major future supply areas for serviced apartments and condominiums. Developer activity demonstrates interest, but it does not guarantee that every project will appreciate.

Outer districts may suit:

• local families;
• employees working nearby;
• tenants prioritising schools and shopping centres;
• buyers seeking a lower purchase price.

For a foreign investor, the risk is confusing attractive project facilities with actual rental demand. If most target tenants work in BKK1 or Daun Penh, the daily commute may reduce the apartment’s appeal.

Matching the neighbourhood to the strategy

A neighbourhood should match a specific tenant. “The centre is always better” fails when the property price is too high relative to achievable rent. “The outskirts always grow faster” also fails without infrastructure and solvent demand.

How to assess the micro-location

Even the right district cannot compensate for a weak plot or street. Before reserving a unit, check:

1. Morning and evening travel times.
2. Road width and vehicle access.
3. Flood risk and drainage.
4. Noise from roads, schools, markets and entertainment venues.
5. Empty neighbouring plots and possible future building height.
6. Current rental listings in the same building.
7. The number of identical units.
8. Parking, lifts and building management.
9. Walkable shops and services.
10. Eligibility for foreign strata title.

Travel time should be checked during actual peak traffic, not estimated from map distance.

Avoiding unrealistic rental assumptions

Yield should be based on achievable rent, not the highest listing. If similar one-bedroom apartments are advertised at $500–600, that does not mean tenants routinely pay $600.

A robust model should include:

• one or two vacant months;
• tenant negotiation;
• leasing commission;
• service charge;
• management;
• repairs and appliance replacement;
• tax treatment;
• furniture depreciation.

Net yield will be lower after management, service charges, taxes and repairs. Neighbourhood selection should therefore work under the cautious case.

Neighbourhood red flags

Warning signs include:

• a price far below nearby developments without a clear explanation;
• marketing based entirely on future infrastructure with no confirmed timeline;
• a rental model dependent on tourists without checking short-term rental rules;
• a “permanent” view across an empty neighbouring plot;
• hundreds of identical studios in one project;
• a short map distance that requires crossing a heavily congested bridge;
• agents using BKK1 and Chamkarmon as interchangeable labels;
• appreciation forecasts replacing a current rent calculation;
• no confirmation of strata title eligibility or foreign quota.

Conclusion

BKK1 remains Phnom Penh’s most recognisable district for international tenants, but high prices and competition can limit yield. Tonle Bassac offers a more modern and balanced central option. BKK2, BKK3 and Toul Tom Poung provide cheaper access to the centre but require detailed street-level review.

Phsar Daeum Thkov can suit buyers seeking a lower entry point in Chamkarmon. Toul Kork is stronger for family rentals and larger layouts. Daun Penh and Riverside offer historic centrality and tourist demand, but building quality is uneven. Chroy Changvar, Sen Sok and Mean Chey require a longer horizon and careful analysis of future supply.

The best district is the one where the apartment’s price is supported by the target tenant’s income and the owner does not need a perfect scenario. Before buying, compare at least three properties by full cost, rent after expenses, foreign title and likely resale market.

This material is for general information only and does not replace individual legal, financial or investment advice. Prices, rents, projects and ownership rules should be rechecked for the specific transaction date.

To compare current apartments in BKK1, Chamkarmon and other Phnom Penh districts by price, payment plan and expected rent, buyers may request a current selection from NovAsia Estate.

Sources

1. Knight Frank Cambodia — Cambodia Real Estate Highlights H2 2025.
2. APS Cambodia — Real Estate Area Guide: Where to Live in Phnom Penh, 13 May 2026.
3. Phnom Penh Capital Administration — current administrative divisions.
4. Council for the Development of Cambodia — Law on Foreign Ownership of Private Units in Co-Owned Buildings.
5. NovAsia Estate — current Phnom Penh project and pricing database, June 2026.