Da Nang combines the coast, tourism and Vietnam’s larger domestic market, but foreign buyers face a 30% unit cap and limited term; Phnom Penh offers a broader cap, USD operations and no separate 50-year foreign term, with less tourism upside and thinner resale.
Phnom Penh and Da Nang are not interchangeable Southeast Asian city bets. Da Nang combines coastline, urban living, tourism, technology migration and Vietnam’s domestic demand. Phnom Penh is an inland capital where tenants are created by business, government, international organisations, schools, banks and regional companies. Similar floor plans therefore serve different calendars and different exit buyers.
The legal structure is equally different. In Vietnam, a foreign buyer can acquire an apartment only in an eligible residential project, within a cap of 30% of the apartments in each condominium building or block, normally for up to 50 years with one possible extension. Cambodia allows an eligible above-ground strata unit within 70% of private-unit floor area and does not impose a separate 50-year foreign ownership term. A Da Nang condo-hotel is not an inexpensive version of a residential apartment: land use, certificate and operator contract create another product.
The decision should be built around tenant, currency, duration of title and resale rather than a sea view. Every cap, term, tax, fee and market reference below must be re-checked for the exact project, certificate, contract, buyer and transaction date.
Rules and deal terms can change; check the exact unit, current documents and contract before committing.
| Criterion | Phnom Penh | Da Nang |
|---|---|---|
| Foreign ownership | Above-ground strata | Home in eligible project |
| Vietnam’s project list and security-area exclusions must be checked before reservation. | ||
| Foreign cap | Up to 70% area | Up to 30% of units |
| The metrics differ: private-unit floor area versus apartment count per building or block. | ||
| Ownership duration | No 50-year foreign cap | Up to 50 years |
| Vietnam allows one extension of up to 50 years subject to conditions; the certificate controls. | ||
| Operating currency | Usually USD | Vietnamese dong |
| Vietnamese price, tax and operations add an FX layer for a USD investor. | ||
| Core tenant | Corporate and expat | Tourism, tech and local |
| Phnom Penh is steadier through the year; Da Nang has stronger seasonal and domestic depth. | ||
| Condo-hotel | Not the core product | Separate legal product |
| Commercial-service land and an operator are not the same as a residential apartment. | ||
| Registration fee | About 4% tax base | Usually 0.5% |
| Vietnamese registration fee and allocation of other taxes must be checked in the contract. | ||
| Maintenance fund | Common charges | Often 2% on new build |
| The Vietnamese fund is generally based on the pre-VAT price; confirm current contract treatment. | ||
| Resale tax | Evolving regime | Often 2% gross price |
| Vietnamese seller PIT depends on structure and current rules; document who bears each cost. | ||
| Data and liquidity | Thin secondary market | Larger local market |
| A residential pink book is generally more liquid than a condo-hotel; post-2025 statistics cover new boundaries. | ||
| Remote completion | POA and local counsel | Bank, POA, eligible project |
| Funds routing and the buyer’s legal eligibility must be established before transfer. | ||
Cambodian strata title does not expire under a foreign-specific 50-year rule and the market commonly uses USD. The buyer accepts thinner resale and weaker official data.
The coast, infrastructure and domestic tourism are stronger. The buyer must choose a true residential apartment or knowingly accept condo-hotel term and operator risk.
Capital-city demand is less dependent on the high season. Performance remains concentrated in a limited number of employment districts.
Vietnam’s internal market is broader for a correctly registered residential unit. Foreign cap and remaining term can narrow the next foreign exit.
A guarantee is the obligation of a named operator or developer, not market yield. Security, audited cash flow and termination rights are required.
Cambodia’s foreign limit applies to private-unit floor area in a co-owned building: foreigners may hold up to 70% of that area, while the land, ground level and underground levels are excluded. It does not mean 70% of apartment count and does not prove availability in a particular building. The manager and registry should confirm current capacity before deposit.
Vietnam’s Housing Law 2023 and Decree 95/2024 apply another test: foreigners may own no more than 30% of apartments in each condominium building or block of an eligible project. The project must be outside defence and security restrictions, while the provincial eligible-project list and remaining capacity should be checked. The current regime took effect on 1 August 2024 and must be re-verified at closing.
The percentages cannot be compared as if they shared a denominator. One counts floor area and the other counts units. Resale also depends on whether the next foreign buyer can register within the remaining cap.
A foreign individual in Vietnam normally receives residential apartment ownership for up to 50 years from the certificate date. The law permits one extension of up to another 50 years subject to conditions and the prescribed application. The certificate should state the term; marketing language such as “long-term ownership” is not a legal substitute. The rules were checked on 3 August 2026 and must be confirmed for the closing.
The remaining term affects the next buyer. Fifteen years later, the asset may be offered with the unexpired period rather than a fresh 50-year term unless the law and extension produce another result. A lender, valuer and local buyer can price that difference. The model should show remaining ownership at the planned exit.
A registered Cambodian strata title has no separate 50-year foreign cap, although the building’s economic life, land and management still matter. Phnom Penh is stronger on duration; Da Nang is stronger on domestic market size. Compare the certificate term, not a freehold label in a brochure.
Da Nang combines domestic tourism, international travel, beach seasons, technology employers, universities and mobile professionals. A seafront apartment may perform strongly in selected months, while weather, school calendars, air routes and hotel competition affect the rest of the year. A long-let urban apartment near offices is a different product from a nightly first-line unit.
Phnom Penh lacks beach upside. Its strength is the business year: corporate staff, diplomatic missions, international organisations, banks, schools and entrepreneurs. Demand is steadier but geographically narrow. A cheap apartment outside employment catchments can remain vacant.
Da Nang’s administrative merger with Quang Nam took effect on 1 July 2025, so newer aggregate statistics cover a wider territory and different resort corridors. Any tourism or supply number must be checked for geographic scope. Yield in both cities should come from the exact building’s history rather than arrivals or office counts.
Vietnamese contracts, taxes, banking and operating costs sit inside the VND system. Foreign capital follows a bank route, while evidence of inbound funds and payment supports registration and future repatriation. A brochure may quote USD, but the legal transaction must comply with currency rules.
The landlord receives and spends dong while possibly reporting in USD. Underwriting should show operating cash flow in VND and a translated result under base and stress exchange rates. FX assumptions are scenarios and must be refreshed for each payment.
Phnom Penh commonly uses USD for prices, instalments and rent, simplifying the model. It does not remove bank compliance, local tax bases or asset risk. Da Nang adds currency risk; Phnom Penh adds more secondary-market risk. The useful comparison identifies the source of uncertainty rather than calling one currency safe.
A Da Nang condo-hotel usually sits on commercial-service land, serves tourism, inherits a limited land-use term and is governed by an operator agreement. Eligibility for a certificate does not convert the land into perpetual residential land or automatically place the unit inside the ordinary residential cap. A low price may reflect the term, owner-use restrictions and hotel dependence.
Economics are set by the contract waterfall: gross room revenue, booking platforms, tax, operator fee, staff, utilities, furniture reserve, renovation and the owner’s remainder. A promoted 8% or any other number is not market yield; it is a corporate obligation that requires security and audited operating history.
Phnom Penh also has serviced apartments and operator schemes, but the core foreign product is a residential strata unit. In either city the buyer must know whether independent letting, management termination and resale without operator consent are possible. Project documents and operating evidence should be supplied on client request.
Da Nang benefits from Vietnam’s large domestic market, but a foreign buyer operates inside a narrower lane: eligible project, cap capacity, banking route and limited term. A correctly titled residential apartment can appeal to local and foreign buyers; a condo-hotel with a short remaining land term and weak operator has a much smaller audience.
Phnom Penh is simpler for a standard strata unit and offers a broader foreign cap, while its secondary market is less deep. The owner competes with new supply and developer instalments. Issued title, achieved rent, competent management and a price below a comparable new unit are central to exit.
Phnom Penh is stronger on duration and USD use; Da Nang is stronger on domestic audience and lifestyle demand. Both should be modelled with a long sale period, tax and discount. Actual resales and current cap capacity must be checked at selection.
Da Nang is a coastal-growth thesis where tourism, infrastructure delivery and foreign tenure all interact. Phnom Penh is a year-round capital rental market with less lifestyle upside and fewer legal timers. I would separate completed infrastructure from promises, model the quiet season and test quota, certificate term and local resale demand.
Elvira Shamuratova
Founder of Elvira Cambodia · Associate Director at Pointer Property · strategic partner of NovAsia
Cambodia counts private-unit floor area; Vietnam counts apartments in each building or block. The exact project’s remaining capacity must be confirmed.
The usual term is up to 50 years from certificate, with one possible extension of up to 50 years subject to conditions. The certificate and current procedure control.
They are different models. The beach is seasonal and hotel-competitive; an urban unit relies on offices, universities and local tenants. Use building history.
A 0.5% registration fee, VAT treatment on new property and a 2% maintenance fund are common references, but base and contractual allocation must be checked.
No. It normally involves commercial-service land, tourist use, a limited term and an operator. A certificate does not create perpetual residential title.
Companies, international organisations, schools and diplomats support a capital-city cycle. Demand is steadier than a beach season but concentrated by district.
Da Nang has a broader domestic market, while cap and term restrict some foreign exits. Phnom Penh has a simpler duration but thinner resale. Certificate and price decide.
Primary documents and datasets, with issuing body and date.
The country-specific rules belong in one guide, not repeated in full on every comparison.
Foreign ownership and strata title · Taxes, fees and cost of ownership
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