PHNOM PENH — Cambodia is seeing a significant rise in foreclosed and distress-sale properties in 2026, particularly in Phnom Penh. Industry experts say this trend presents strong opportunities for investors with sufficient cash to buy prime real estate at discounted prices, either for future resale profit, rental income, or personal use.

Real estate professionals explain that many property owners face financial difficulties due to ongoing economic challenges. Many had used their land or homes as collateral for bank or microfinance loans. When owners could no longer meet their repayment obligations, they agreed with lenders to put the properties up for auction or foreclosure sale to settle their debts.

Mr. Cheng Vuthy, CEO of INVA Real Estate and Valuation, noted that auction prices are generally lower than standard market rates. This allows cash-ready buyers to secure prime locations with strong bargaining power directly with property owners.

However, selling these properties remains challenging. Ms. Ann Sothida, Country Director of PropNex Cambodia, mentioned that despite the high volume of foreclosed properties—especially residential homes—many struggle to find buyers because they do not match current market demand. Nevertheless, she added that investors with capital can leverage this situation to buy quality properties in prime locations for long-term capital gains or steady rental returns.

Property prices in Cambodia have remained relatively stable compared to 2024 and 2025. However, compared to the peak market of 2019, overall property values have dropped by roughly 20% to 30%, with some properties seeing price drops of up to 40%.

Published: October 21, 2026