Resale and exit strategy in Cambodia

Everyone talks about entering a deal; almost no one talks about the exit. Yet it's the exit strategy that determines how much you actually earn and how quickly you get your money back. In Cambodia there are three fundamentally different exit routes: assignment of contract rights before completion, an open-market sale after you receive the keys, and a developer buy-back if that programme is written into the contract. Each has its own mechanics, its own fees and its own realistic liquidity. Below is an honest breakdown with no promises: what to check before you buy so that the exit doesn't become a problem.

Why the exit is planned before the purchase

The key mistake is thinking about the exit only when you already need the money. The right to assign, the buy-back terms, the developer fees and the timing limits are all fixed in the SPA at the moment of purchase. If the contract has no assignment right, or it comes with heavy conditions, you'll find out too late. So the realistic horizon and exit method belong in the decision from the very start: some projects suit a quick speculative resale, others suit long holding with rental.

Assignment before handover

An assignment is the sale of your rights under the sale-and-purchase agreement before the building is completed and the title is registered. Formally you transfer to the new buyer not the apartment itself (it doesn't physically exist yet) but your position in the contract with the developer. This is the fastest way to exit an under-construction property — and often the most profitable, if the price has risen during construction.

But assignment has its rules, and they all sit on the developer's side:

• The right to assign must be in the contract. Not all developers allow it, and some allow it only after a certain share of the value has been paid.
• A developer assignment fee. Often a percentage or a fixed charge for processing the transfer of rights.
• Buyer approval. Sometimes the new buyer must go through the same procedures you did on entry.
• A timing window. Assignment is only possible in the window before handover; after handover it becomes an ordinary resale with title registration.

The availability and terms of assignment are among the first things we check in the SPA with the client. If the strategy is to exit before completion, this is critical.

Resale after handover (secondary market)

Once you have the keys and the title is registered, you own the apartment fully and can sell it on the secondary market. This is the classic scenario: you either held the property for rental and decided to exit, or waited for completion to sell the finished home for more than the "off-plan" price.

Here's the honest point about Phnom Penh's secondary market: it's noticeably less developed than the primary one. The main demand and the developers' marketing budgets are focused on new projects, so selling a completed property takes time, an adequate price and — as a rule — working through an agent. Sale speed depends heavily on the district: central locations with real rental demand (BKK1, Tonle Bassac, the riverfront) are more liquid than remote or oversupplied segments.

Developer buy-back

A buy-back is the developer's commitment to repurchase the property from you at a pre-agreed price and time. NovAsia projects do have such a programme — for example, Odom Tower: per developer data, the buy-back is 110% in year 5. This is the most predictable exit — you know the price and the date in advance.

Here honesty in the numbers matters, as we always insist: if over 5 years you receive 8% annual income plus a 110% buy-back, the total return is close to 150% of the invested sum — but that's the total return, not net profit. Net above the invested sum comes to around 50% over five years. Substituting one for the other is incorrect, and we don't do it. We break down the income and buy-back mechanics in the piece on guaranteed rent and buy-back.

A buy-back is a term of the contract with a specific developer, not a guarantee by NovAsia and not a property of the market. The obligated party, the timing, the price and the trigger conditions are fixed in the SPA and checked before purchase.

How to compare the three exit routes

A short summary to pick a strategy for your goal. Exact figures depend on the project and the contract — the table shows the logic, not promises.

Fees, taxes and costs of exit

Any exit costs money, and these costs need to be built into the yield calculation in advance. Depending on the exit method, the following may arise:

• Capital-gains tax (CGT). In Cambodia the introduction of capital-gains tax has been postponed repeatedly; as it stands, the start is deferred to 1 January 2027. This is a date-sensitive point — check the current status before the deal.
• Title-transfer fees. Registering the transfer of ownership incurs state fees and registration costs.
• Agent's commission. When selling through an agent — a percentage of the transaction.
• Developer assignment fee. A separate charge for processing the assignment.

We cover the full picture of taxes and fees on purchase and ownership in the piece on Cambodia property taxes.

Liquidity: what to expect realistically

Liquidity is what marketing prefers to stay quiet about — and for an investor it's half the decision. Realistic benchmarks for Phnom Penh: central completed projects with rental demand sell faster and at a smaller discount; under-construction properties exit via assignment, but the pool of buyers is narrower; remote and uniform mass-market projects can require noticeable time and a price concession. Cambodia's currency advantage is that the economy is dollarised — you don't lose on local-currency swings at exit — but overall country and market risk remains. So the basic rule is simple: don't count on an instant exit, and build in a time buffer.

Frequently asked questions

Can you sell an apartment in Cambodia before the building is completed?

Often yes — through an assignment of the contract rights. But the right to assign and its terms (developer fee, minimum share paid, approval) are defined by the SPA and differ by project. This should be checked before purchase, not at the moment of exit.

How is a buy-back different from an open-market sale?

A buy-back is the developer's commitment to repurchase at a pre-agreed price and time, if such a programme is in the contract. An open-market sale is finding a buyer at market price with no guaranteed timing or sum. The buy-back gives predictability; the market gives potentially higher proceeds but with timing risk.

What taxes and fees apply on resale?

Possible capital-gains tax (introduction in Cambodia deferred to 2027), title-transfer fees, an agent's commission and a developer fee on assignment. The exact mix depends on the exit method and the property's status; rates and reliefs may change, so the calculation should be done for the specific deal.

How liquid is Phnom Penh property on the secondary market?

It depends on the district, project, price and market. Central completed projects with real demand sell faster; under-construction or remote ones more slowly. The secondary market is less developed than the primary, so a realistic exit horizon should be planned in advance.

Sources

Developer SPAs and buy-back programmes for NovAsia projects · developers' public materials on assignment terms · NovAsia analysis of taxes and fees on property transfer in Cambodia · status of capital-gains tax (CGT) as of 2026, start deferred to 01.01.2027. The terms of a specific deal are checked against the current contract and confirmed before signing.