A reasonably-priced residential development project, located in Kandal province. Supplied
Prime Minister Hun Manet has declared that the real estate market, particularly in residential properties in Cambodia, has started to pick up gradually, and that growth is stronger and clearer than before.
As he addressed the March 4 opening ceremony of the “Cambodia Outlook Conference 2025: Cambodia’s New Growth Strategy: Priorities for High-Quality and Sustainable Development” organised by the Cambodia Development Resource Institute (CDRI) in Phnom Penh, the prime minister mentioned that the real estate market in Cambodia has started to see gradual growth again, with signs of an upward trend.
However, he accepted out that the growth is not as strong as before the Covid-19 pandemic. He added that most of the growth in real estate transactions is for actual use, as opposed to the speculation that drew the previous boom.
“Although the growth is not large, it is based on clear foundations. This is real growth,” he said.
Manet emphasised that for Cambodia to maintain positive economic growth, including in the real estate sector, there must be participation from all relevant parties, including the private sector.
Sam Soknoeun, president of the Global Real Estate Association and chairman of the SAM SN Group, who attended the event, told The Post that the real estate market in Cambodia is beginning to recover gradually, especially for reasonably priced residential properties.
He noted that the market is currently stable and transparent, and it is not a speculative market for quick resale. Most of the buying and selling involves reasonably priced houses and condominiums.
“At the beginning of 2025, I have observed an increase in the demand for housing by Cambodians compared to the last few years. I believe that around 98 per cent of the purchases are for actual use as residences, while the remaining purchases may be for potential future profits,” he added.
According to Soknoeun, after nearly five years of stagnation due to the Covid-19 crisis, several local investors have started to announce new construction projects for residential properties for sale.
To help boost and revitalise the real estate market, particularly the residential sector, the government, through the Ministry of Economy and Finance, issued a notice on December 31, 2024, regarding “Exemptions and Tax Incentives for Transfer of Property Ownership or Rights for First-Time Home Buyers”. This policy will be effective from January 1 to December 31, 2025.
The finance ministry announcement explained the details of the exemptions.
First, when people purchase their first property – or transfer title for the first time – they will receive a tax exemption for properties valued up to $210,000. Properties over this amount will be granted tax relief based on a deduction of $210,000 from the taxable value. This exemption applies to only one property per individual, with subsequent properties remaining eligible for a deduction of $70,000.
Properties should be purchased from registered development companies.
All property developers must comply with buyer-seller agreements which are based on fair market prices, and purchase agreements must be submitted to the relevant tax administration for review before the transfer of ownership.
The statement also highlighted that properties purchased from developers lacking the necessary licenses or facing financial issues may also be eligible for the tax exemptions, as part of the ministry’s intervention measures.
