Perhaps one of the best potential economic dark-horses looking next to rise to prominence in the Southeast Asia region, Cambodia has managed to continue its long path to recovery from the horrors of genocide and war, to become one of the pre-eminent destinations for savvy investors, looking for a more exotic, and long-term profitability stake, in one of the best (and last) frontier markets in the region – all of which has led potential investors to try and discover what the best neighborhoods for investment in Phnom Penh actually are.
Nowhere is this growth becoming more apparent then Cambodia’s capital city of Phnom Penh, a place which certainly still has its rougher edges – but the development and revitalization of districts both new and old within the city has made investors begin recalling the opportunities that used to be had in neighboring Bangkok in the 1980’s.
While Cambodia is still very much a developing country, and there are many pros and cons to moving and investing in the country – of which I cover in greater detail here, for the right kind of investor, looking to diversify their portfolio, Phnom Penh is certainly a city with great mid to long term potential for both capital gains and rental yields.
Of course, in a rapidly developing country that still bears the scars of unimaginable recent suffering, there are bound to be plenty of places to certainly be avoided (certain districts within Phnom Penh, and perhaps Sihanoukville altogether). That said, having once lived in Cambodia’s capital myself not too long ago, I got a chance to spend significant time visiting and working in many of Phnom Penh’s neighborhoods, which helped me to find a first-hand view of which places would be best to invest in, or even move to, for the expat looking to move to Southeast Asia’s version of the Wild West.
So to help you better make an intelligent decision with both your money and your time, here without further ado are my top 5 best neighborhoods for investment in Phnom Penh!
#1: Boung Keng Kang (BKK)
Starting with my personal top favorite area within the entire city core, and easily one of the best neighborhoods for investment in Phnom Penh, is Boung Keng Kang, better known affectionately by the locals as BKK. Situated at the very core of the city, BKK is the most upscale, modern, and arguably safest neighborhood in the entire city, boasting modern shopping centers, amazing cafes, coffee shops, and high-rise hotels.
Despite most of Cambodia, let alone Phnom Penh, still very clearly showing the wear and tear of years of poverty and neglect, BKK stands a world away from most of the rest of the city (similar to Makati in Manila), and this has attracted major investors looking to build new apartments, shopping centers, and hotels within this, the city core. If you were to take up the chance to park your cash in one of the best neighborhoods for investment in Phnom Penh, then look no further than BKK – easily the safest short and long term bet for your financial strategy.
#2: Koh Pich
Moving to the city’s eastern coast, right up against the Mekong River, sits the island of Koh Pich, which stands as one of the best neighborhoods for investment in Phnom Penh, looking to cash in on the free-flowing spigot of money coming from China, that albeit has slowed in recent years, continues Cambodia’s growing closeness to one of the most major trading and development partners.
Like many Chinese-funded construction projects, the emulation (and fabrication) of a major world city like Paris, super-imposed into the Southeast Asian skyline can be fascinating, interesting, and kitch – sometimes all three at once! However, although much of the Chinese construction money has dried up in the last year, due to the economic issues facing major national firms like Evergrande, Koh Pich remains mostly fully completed, awaiting wealthy Chinese nationals looking to move into the many units dotting up and down ‘Little Paris’ – as well as savvy investors looking to capitalize on the rental yields to be had, in this, one of the best neighborhoods for investment in Phnom Penh.
#3: Doun Penh
However, if you would rather place your money into a more authentic, yet no less interesting part of Phnom Penh, then you should definitely consider Doun Penh – which is not only one of the best neighborhoods for investment in Phnom Penh, but also home to some of Cambodia’s best known architectural marvels, outside of the world famous Angkor Wat temple complex.
Playing host to the nation’s Royal Palace, as well as many wide boulevards, parks, and the city’s Independence Monument, Doun Penh manages to combine ritz and glamour with a more local Cambodian feel – and as the district remains one of the most desirable in the city due to it’s political and cultural importance, this neighborhood will continue to remain a good investment for anyone banking on the future development of Cambodia, as well as the best neighborhoods for investment in Phnom Penh.
#4: Tuol Tom Poung
Continuing the trend towards districts that cater more to the average local populace, is Tuol Tom Poung – which also happens to be one of the best neighborhoods for investment in Phnom Penh. Despite being a bit more dirty, grungy, and real then many of the other districts on this list, Tuol Tom Poung is also one of the better known districts among many expats who have begun to carve out a little slice of home here in the core of this Southeast Asian capital.
While still very much maintaining its identity as the home of the city’s bustling Russian Market, the continued rise of pop-up new restaurants and cafe’s in the surrounding area, as well as the ongoing revitalization of the district by both locals and expats alike, continue to make Tuol Tom Poung very popular as an option for purchasing rental property’s or starting a business, and thus makes this district remain high atop the list as one of the best neighborhoods for investment in Phnom Penh.
#5: Phum Bayab
Finally, for the savvy investor who would rather cash in on brand new developments on the north-western outskirts of the Cambodian capital, as well as potentially live in a quieter, more residential neighborhood away from the non-stop chaos and noise at the core of the city, then considering Phum Bayab might be a great idea, as it too remains one of the best neighborhoods for investment in Phnom Penh.
Due to its location, with lots of wide-open space, brand new housing developments, as well as the city’s biggest (and best) new AEON Sen Sok shopping center, let alone many other major big box stores, Phum Bayab makes up for it’s lack of closeness to all the action with all the many conveniences you can have by moving, or parking your cold, hard cash in a rapidly developing neighborhood, that stands definitively on the up and up as one of the best neighborhoods for investment in Phnom Penh.
Destination: Cambodia, The Raw Potential of Southeast Asia’s Wild West
Having managed to survive the terrors and systemic shock of Pol Pot’s genocide, Cambodia has slowly but surely continued to trudge towards the future, despite having a long way to go to offering the kind of living standards that are now common place in other places in the Southeast Asian region, like Thailand and Malaysia for example – I also cover in greater detail some of the best places to move to in this part of the world right here.
That much said, for the right kind of investor, who understands proper wealth diversification strategies, and doesn’t plan on putting all their eggs into one basket, then placing your money into one of the last frontier markets in Southeast Asia, may still end up returning amazing dividends on both capital gains and rental yields. Simply put, if you choose one of these best neighborhoods for investment in Phnom Penh, you will definitely put yourself in the best position to capitalize on getting in on the ground floor of a nation on the rise.