Cambodia Extends Property Tax Holiday to Bolster Real Estate Recovery Amid Market Stagnation

PHNOM PENH, Cambodia (Jan. 5, 2026) — Cambodia’s government has extended the suspension of capital gains tax on real estate transactions for another year, delaying implementation until Jan. 1, 2027, in a move aimed at easing pressure on the property market and supporting recovery after years of stagnation.

The decision, announced Jan. 2, was welcomed by developers, brokers and investors who have struggled with sluggish demand since the COVID-19 pandemic and global economic shocks. Industry leaders say the extension provides breathing room for property owners, land traders and developers holding unsold units.

Dr. Kim Heang, CEO of KW Cambodia, said the measure offers relief at a critical time. “This is good news for the market,” he said. “It does not push prices up immediately, but it helps ease pressure and creates a better environment for recovery in 2026.”

Heang noted that Cambodia’s real estate sector has faced prolonged stagnation, compounded by the Russia–Ukraine war, rising global interest rates and tighter market conditions in early 2025. While property prices have not collapsed, transactions remain slow and cautious. “The market has returned to conditions similar to 2023 and 2024, where buying and selling activity was tight and conservative,” he said.

Analysts say the tax holiday is expected to boost investor confidence, ease liquidity constraints and give developers more time to adjust before the levy takes effect. The government has framed the extension as part of broader efforts to stabilize the economy and encourage investment, particularly in housing and commercial projects.

Officials added that the suspension will also help maintain competitiveness in the region, as Cambodia seeks to attract foreign investment and strengthen its real estate sector ahead of the tax’s eventual rollout.