Synopsis: Although national residential property prices remain below both their 2020 baseline and year-earlier levels, the May rebound suggests the market is stabilising after a prolonged slowdown.
Residential property prices in Cambodia rose 1.19 percent in May from the previous month, signalling a modest recovery after months of decline, according to the latest Residential Property Price Index (RPPI) released by the National Bank of Cambodia (NBC) on July 31.
The overall RPPI increased to 99.32 (2020-100), driven mainly by stronger prices in Phnom Penh. Despite the monthly gain, the index remained 1.32 percent lower than in May 2025 and slightly below its 2020 baseline.
Phnom Penh recorded the strongest rebound, with its RPPI rising 1.88 percent month on month to 99.92 after consecutive declines earlier this year. However, residential property prices in the capital were still 1.93 percent lower than a year ago.
Outside Phnom Penh, residential property prices declined 1.89 percent from April to 93.89 in May. On an annual basis, however, provincial prices increased 1.95 percent compared with May 2025.
The latest figures indicated a mixed recovery across the residential property market. After reaching a peak in mid-2022, the national RPPI has generally trended downward, with sharper declines recorded in late 2025 and early 2026.
January saw the steepest recent monthly fall, with the national index dropping by more than two percent. The increase in May therefore suggested improving market sentiment, particularly in Phnom Penh, where demand and transaction activity appear to be strengthening.
The NBC compiled the RPPI using the time-dummy hedonic method, which adjusts for differences in property characteristics, including location, size, number of floors and bedrooms, to provide a more accurate measure of price movements.
The methodology follows international standards recommended by the International Monetary Fund and is based on housing loan transaction data reported by banks and financial institutions. The central bank also removes statistical outliers to ensure the index reflects broader market conditions.
Although residential property prices remained below both their 2020 baseline and year-earlier levels nationally, the rebound in May suggested the market could be stabilising after a prolonged slowdown.
Speaking to Khmer Times, an independent real estate consultant, Mean Sovannarith, said that the 1.19 percent increase in the RPPI is a clear signal that the market is beginning to move in a more positive direction.
“Although prices have not yet returned to their previous levels, it shows that buyer confidence is gradually returning,” he said, noting that data-driven investors with a long-term perspective are well-positioned to seize opportunities before the market fully recovers.
“For Cambodia, if banks, developers, real estate professionals, and the authorities work together to address cash-flow constraints, rebuild confidence, and better match products with actual market demand, the sector can recover more quickly and on a stronger foundation, he noted.
Sovannarith emphasised that those with experience and strong banking relationships also have an opportunity to act as a bridge between property owners, investors, and financial institutions, helping create practical solutions that benefit all parties.