Get ready to witness something special unfold in central Phnom Penh – the Phsar Thmey area is poised for an exciting investment transformation that savvy investors and residents are already buzzing about. With its unbeatable location, iconic architecture, and compelling market fundamentals, this historic district is set to become one of the city’s hottest property markets in coming years.
Phsar Thmey numbers tell an exciting story
Let’s talk about what really matters—the data. Phsar Thmey sits within Daun Penh District, which consistently ranks as one of Phnom Penh’s top three most valuable areas. Land prices in Daun Penh currently range from $3,500 to $6,500 per square meter, placing it alongside Boeung Keng Kang and 7 Makara as the city’s premium districts. Even more impressive, recent valuations show Daun Penh reaching up to $12,000 per square meter in prime locations, demonstrating the tremendous value concentration in this central zone.
But here’s where it really gets exciting: historical data from 2018 shows that Phsar Thmey commune commanded land prices up to $8,800 per square meter—the highest in all of Phnom Penh at that time. This area has always been recognized as premium real estate, and that positioning is only strengthening as the city matures.
Location, Location, Location!
Phsar Thmey’s geographical advantage cannot be overstated. This area sits at the absolute epicentre of Phnom Penh’s commercial and administrative activity. Daun Penh is Phnom Penh’s primary central business district, home to the city’s Central Market and main commercial neighbourhood, along with numerous government offices, the riverside, and Wat Phnom.
Think about what this means for property values: you’re within walking distance of government ministries, major banks, the riverside entertainment district, and some of the city’s most important cultural landmarks. Key communes such as Sras Chork and Phsar Thmey are seeing a boost in development, contributing to the area’s high land value. When a location offers this level of centrality and connectivity, appreciation becomes almost inevitable.
A cultural icon with global recognition
The magnificent Central Market building itself—officially named Phsar Thmey, meaning “New Market”—is more than just a shopping destination. Completed in 1937, this bright yellow Art Deco landmark features a 26-meter high central dome with four tall arch-roofed arms branching out diagonally, and when it first opened, it was said to be the biggest market in Asia.
In recent years, Central Market has undergone careful renovations to preserve its historical significance while enhancing the overall infrastructure, ensuring that the market remains a beacon of authenticity in Phnom Penh. This investment in preserving and upgrading the area’s signature landmark signals long-term commitment to maintaining Phsar Thmey’s prestige and attractiveness.
The building’s unique architecture and historical importance make it a major tourist draw, creating constant foot traffic and commercial vitality that benefits surrounding properties. This isn’t just a neighbourhood—it’s a destination.
Expert opinions point to continued growth
Real estate professionals aren’t shy about their optimism for central Phnom Penh locations like Phsar Thmey. Industry analysts believe property in Daun Penh will outperform other districts in Phnom Penh, making it one of the first three districts in Cambodia’s capital that should grow most over the long term.
What’s driving this confidence? Property prices in Phnom Penh are expected to rise in 2025, driven by a combination of economic growth and urban development, with forecasts suggesting increases between 5% to 10% of their 2024 values. Central districts are particularly well-positioned to capture this growth given their established infrastructure and limited remaining developable land.
CBRE Cambodia’s Managing Director noted that “Phnom Penh’s real estate market continues to show resilience and adaptability,” with the varied land prices across districts reflecting “diverse investment opportunities, catering to both high-end and budget-conscious investors”.
The scarcity factor works in your favour
Here’s a crucial point that many overlook: central districts like Daun Penh have reached price ceilings with limited appreciation potential due to land scarcity and market maturity, but these areas maintain their premium status. Wait—limited appreciation doesn’t sound positive, right? Actually, it is! This means Phsar Thmey has already established itself as a mature, stable high-value zone where prices hold firm even during market corrections.
Moreover, there’s a shortage of expat-quality housing in several central districts like Daun Penh, meaning it’s still possible to buy older apartments, renovate them, and have them valued significantly higher on the secondary market. This creates fantastic opportunities for value-add investors who can see the potential in this prime location.
Premium amenities at your doorstep
Living or investing in Phsar Thmey means immediate access to everything that makes urban life convenient and enjoyable. The area offers an incredible concentration of amenities: international restaurants, government services, banking facilities, cultural attractions, entertainment venues, and shopping options all within a compact, walkable radius.
Central districts including BKK1, Daun Penh, and Tonle Bassac offer the easiest resale potential due to established buyer recognition, proven property management track records, and consistent demand from both local and international buyers, maintaining their premium status and liquidity even during market downturns.
The bottom line: a smart bet on central value
Phsar Thmey represents everything sophisticated real estate investors look for: established prestige, genuine scarcity, unmatched centrality, strong fundamentals, and a clear value proposition. While suburban districts may offer higher percentage growth from lower bases, Phsar Thmey provides something more valuable—stability, liquidity, and enduring desirability.
Expert ten-year outlooks suggest Phnom Penh property values could converge toward Bangkok and Ho Chi Minh City levels, particularly for prime apartments in central locations. Given that Thai and Vietnamese capital city property values are multiples higher than current Phnom Penh prices, this convergence represents enormous upside potential for early movers in premium districts like Phsar Thmey.
The combination of limited supply, maximum centrality, cultural significance, and strong market fundamentals makes Phsar Thmey one of the most compelling property stories in Southeast Asia right now. The boom isn’t coming—it’s already here, quietly building momentum in Cambodia’s most historic and prestigious central district. Smart money is taking notice, and the window of opportunity won’t stay open forever!
Land Prices in Phnom Penh in 2025
Central Market – Phsar Thmey, Phnom Penh
Indicative Land Value in H2 2024
Central Market (AKA Phsar Thmey) testament to Cambodia’s rich history and cultural heritage
