High Floor vs Low Floor Condo in Cambodia: Which Is Better for Investment & Rental Yield?

High Floor vs Low Floor Condo in Cambodia: Which Is Better for Investment & Rental Return? Cambodia’s condominium market—especially in Phnom Penh—has grown rapidly over the past decade, attracting both local and foreign investors. One of the most common (and important) questions buyers ask is: Should I buy a high-floor or low-floor condo for better investment and rental yield in Cambodia? While developers often price units higher as the floor level increases, rental income does not always rise at the same pace. Understanding this difference is key to making a smart real estate investment. How Floor Level Affects Condo Prices in Cambodia In most new condo projects across Phnom Penh, pricing follows a clear pattern: Higher floor = higher price per square meter Price differences can range from USD 30–100+/sqm per floor, depending on location and project quality Premium floors (river view, skyline view, penthouse levels) often carry a significant markup This pricing strategy is driven by: Better views Less street noise Higher perceived status and prestige However, from an investment perspective, a higher purchase price does not automatically mean higher profit. Rental Yield: High Floor vs Low Floor Condos Low-Floor Condos: Stronger Rental Yield Low-floor units (typically floors 3–10) are often favored by investors focused on rental return. Why low floors rent well in Cambodia: Lower purchase price = better yield Easier access (important during elevator congestion or power outages) Popular with long-term tenants such as: Expats NGO staff Office workers Young families In many cases, a low-floor unit can generate similar rental income to a high-floor unit—but with less capital invested. High-Floor Condos: Lifestyle & Capital Appreciation High-floor units (floors 15+) appeal more to end users and lifestyle-focused tenants. Advantages of high floors: City skyline or river views Less dust and traffic noise Strong appeal for short-term or premium tenants Better resale value in landmark projects However, rental prices often increase only slightly, while the purchase price is much higher—resulting in lower rental yield, but potentially better long-term appreciation. Tenant Demand in Phnom Penh Tenant preferences in Phnom Penh are practical rather than luxury-driven. Most renters prioritize: Price Location Unit layout Furnishing quality Building management Floor level is usually secondary, except in luxury developments or prime districts like Boeung Keng Kang 1 (BKK1), where high-floor views can command a premium. Resale Value: Which Floor Performs Better? High-floor units Easier to resell in iconic or luxury projects Attractive to overseas buyers and owner-occupiers Better for capital appreciation Low-floor units Sell faster when priced competitively Attractive to yield-focused investors Lower risk during market corrections Your exit strategy matters just as much as your entry price. So, Which Is Better for Condo Investment in Cambodia? Choose a Low-Floor Condo if you want: Higher rental yield Lower investment capital Stable long-term tenants Faster break-even Choose a High-Floor Condo if you want: Better views and prestige Strong resale appeal Lifestyle or personal use Long-term capital growth

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