PHNOM PENH — Fewer foreigners coming to Cambodia in 2026 and shifting market conditions have lowered the demand for apartments in Phnom Penh. As a result, more apartments across the capital are sitting empty, according to new reports from local real estate agencies.
Data from real estate firm Cam Realty shows a clear change in the market. Some apartment buildings that used to be over 90 percent full are now down to 50 percent or less. Even so, well-managed and well-kept properties are still able to keep their rental rates high. To deal with these changes, some owners are lowering their rents and working closely with real estate agents to find tenants.
Cam Realty warns owners against leaving their buildings empty, saying it leads to four main losses at the same time. First, owners lose their monthly rental income. Second, they still have to pay regular expenses, like hiring security to guard the building. Third, empty buildings face bigger safety risks, such as fires or unnoticed damage. Finally, electronics and furniture inside break down faster when nobody uses them. Because of this, smart owners are choosing to lower their rents to current market prices instead of losing money every day.
Looking at the numbers, Chea Kimsea, Director of Research and Consulting at APS, said that Grade A and Grade B apartments had an average occupancy rate of 64.9 percent in the second quarter of 2026. This means about 35.1 percent of these apartments are empty—a middle ground that is not terrible, but shows demand is not very strong either.
On the other hand, Grade C apartments are facing much tougher times. Mr. Kimsea explained that government crackdowns on online scam centers cut off a large source of tenants, leaving many Grade C owners struggling with empty rooms. To fix this, experts suggest dropping rent prices. The APS report notes that Grade C apartments should charge around $10 per square meter or less each month to attract renters, since people looking at these places usually have smaller budgets and want rooms for $300 a month or less.