Why Do Buyers Spend US$1M+ on Cambodian Luxury Property When They Could Buy Elsewhere?

Written By chheng leang

“By Hoem Seiha - Curator of Luxe Residences at ERA Cambodia”

Recently, I was speaking with an Australian prospect who was exploring a luxury residence in Cambodia's coastal province of Kep.

After learning the asking price of a large penthouse residence, he replied with a smile:

"Mate, for that price I could buy a nice house here."

My response?

"You're absolutely right."

As property advisors, we sometimes become too focused on explaining why a property is worth its price.

But the truth is that many buyers are asking a perfectly reasonable question.

If someone has US$1 million, US$2 million, or even US$5 million to allocate, why would they choose a property in Cambodia when the same capital could buy a home in Australia, an apartment in Dubai, a villa in Bali, or even a property with residency options in parts of Europe?

The answer is not always obvious. And more importantly, there is no universally correct answer.

The Luxury Property Market Is No Longer Local

One of the biggest changes I've observed over the years is that luxury buyers no longer compare properties within a single city.

Today, a buyer considering a US$1 million property in Phnom Penh or Kep may simultaneously be evaluating opportunities in Sydney, Melbourne, Dubai, Bangkok, Bali, Lisbon, or Athens.

The competition is no longer local, but it is global.

A buyer with a seven-figure budget can often choose among:

Approximate Budget >> Potential Options

  • US$1M >> House in Australia

  • US$1M >> Apartment in Dubai

  • US$1M >> Villa in Bali

  • US$1M >> Property with residency pathways in parts of Europe

  • US$1M >> Luxury penthouse or premium residence in Cambodia

Viewed through this lens, luxury real estate becomes less about the property itself and more about the lifestyle, objectives, and personal circumstances of the buyer.

Different Buyers Are Solving Different Problems

One of the biggest mistakes in real estate is assuming every buyer is pursuing the same goal. They are not.

Some buyers prioritize capital preservation. Some seek rental income. Others are looking for residency opportunities. Many are simply searching for a place where they genuinely want to spend part of their lives.

A simplified view might look like this:

Primary Objective >> Likely Destination

  • Capital growth >> Australia

  • Rental yield >> Dubai

  • Residency pathway >> Europe

  • Lifestyle retirement >> Coastal destinations

  • Urban luxury living >> Major city centers

  • Family retreat and second home >> Lifestyle-driven markets

None of these objectives are inherently better than the others. The right answer depends entirely on the buyer.

Luxury Buyers Rarely Buy Square Meters

This is perhaps the most important lesson I have learned while working with luxury residences.

Most luxury buyers do not purchase property simply because it offers the lowest price per square metre.

They buy something much less tangible:

  • They buy views.

  • They buy privacy.

  • They buy convenience.

  • They buy time.

  • They buy memories.

  • They buy the ability to wake up in a place they genuinely enjoy.

This is why two properties with similar prices can feel completely different to different buyers.

One buyer sees a financial asset. Another sees a future lifestyle. And another sees a family legacy.

All three can be correct at the same time.

Last of All

The Australian buyer who told me, "For that price, I could buy a nice house here," was absolutely right.

Luxury buyers today can choose from Australia, Dubai, Europe, Thailand, Cambodia, and many other markets.

The question is not whether there are better alternatives.

The question is:

What are you really buying?

For some, it's capital growth. For others, it's rental income or residency. And for many, it's a lifestyle, a family retreat, or a place they genuinely want to spend their time.

At the highest end of the market, buyers are rarely purchasing square metres alone. They are purchasing a future version of their life. Because the most expensive mistake in luxury real estate is not overpaying.

It is buying a property in a place where you never truly want to be.

— Hoem Seiha Curator of Luxe Residences at ERA Cambodia

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