Introduction: The New Heartbeat of Phnom Penh
South of Phnom Penh’s gleaming towers and polished boulevards lies a district quietly rewriting the city’s urban narrative. Known to locals as Toul Tom Poung, and internationally as the Russian Market, this neighborhood has evolved from a modest trading quarter into one of Cambodia’s most magnetic residential and investment zones.
This area is the rising tiger of the Phnom Penh rental market and seeing the fastest growth in rental occupancy and monthly rates. Once overshadowed by the prestige of BKK1, the district has emerged as a frontier of opportunity — vibrant, authentic, and rapidly transforming. Here, urban character meets convenience, culture intertwines with commerce, and the future of Phnom Penh’s southern development unfolds.
A District Defined by Authenticity
There’s an undeniable charm to Toul Tom Poung. The scent of street food mingles with the aroma of artisan coffee. Motorbikes weave through narrow lanes flanked by murals, boutiques, and colonial façades. Expats, entrepreneurs, and locals share café tables, creating a rhythm that feels uniquely Phnom Penh.
Expats increasingly prefer this area (known as Russian market or Toul Tom Poung) because it’s just a few blocks from BKK1 (where land and condo prices are the highest in the city, as well as luxury rentals), and the city is shifting toward the southern side (Time Square 8 is just south of BKK1).
The neighborhood’s appeal lies in its equilibrium — close enough to the capital’s commercial core for convenience, yet far enough to retain its original soul. Unlike the sterilized elegance of BKK1, Toul Tom Poung breathes with authenticity. Its modest apartments, repurposed shop-houses, and modern developments coexist seamlessly, offering an eclectic urban mosaic rarely found elsewhere in Phnom Penh.
Lifestyle: Where Culture and Community Converge
In Toul Tom Poung, life unfolds at a tempo that feels human. It’s a place of connection — between cultures, cuisines, and communities. The iconic Russian Market remains the neighborhood’s beating heart, drawing visitors for its labyrinth of stalls selling everything from silk and spices to antiques and handcrafted décor.
Cafés, yoga studios, and co-working spaces cater to a new generation of residents seeking a lifestyle that blends comfort with creativity. Families gravitate here for its proximity to international schools, while professionals appreciate the quick access to embassies and corporate headquarters nearby.
They also prefer it because it’s less sterile and gentrified than BKK1 currently, offering a more authentic living experience. It’s also an area littered with international schools, embassies and corporate headquarters. I live in the area, and it’s a 5 minute commute to our office in central BKK1.
The five-minute commute to BKK1 is a major draw. It allows residents to engage with the city’s business center by day and retreat to a more tranquil, character-filled environment by night.
Affordability Meets Accessibility
For investors and tenants alike, Toul Tom Poung strikes the ideal balance between affordability and access. Id much rather spend my free time in that area too – as the options for food, entertainment and shopping are more affordable and eclectic than in the commercial downtown – but its still well connected to places where people work, study and so on.
Its streets are dotted with independent restaurants serving both local and international cuisine — from rooftop bars to artisan bakeries. Compared to downtown Phnom Penh, the cost of living here remains attractive without compromising lifestyle quality.
This affordability, combined with growing demand from expatriates and professionals, has turned the area into a rental goldmine. Tenants find better value for money, while landlords enjoy shorter vacancy periods and steady income streams.
The Flood-Free Advantage
A subtle yet crucial reason for the area’s growing popularity lies beneath the surface — literally. The south side of the city is not affected by flooding in the monsoon months too, which is very important. (areas near the river and the north west often go under water during the wet season.)
Phnom Penh’s geography makes certain districts vulnerable to seasonal flooding, but Toul Tom Poung remains reliably dry. For property owners and renters, this means fewer maintenance headaches, higher property values, and uninterrupted accessibility even during heavy rains. In a city where climate resilience increasingly influences investment decisions, Toul Tom Poung’s elevation gives it a clear edge.
Current Real Estate Landscape
The Toul Tom Poung property market is still in its early stages of transformation. However, there are no condominiums open to foreign investment in the Russian Market area yet (there is a couple older buildings with strata title, but nothing with amenities and quality like Time Square 8).
This scarcity of foreign-investment-ready projects has created pent-up demand. Most existing properties are older apartment blocks — privately owned, locally managed, and catering to long-term renters. They enjoy robust demand due to the area’s centrality and character, but lack the modern facilities, amenities, and ownership flexibility that new condominium developments offer.
All the development has been focused in BKK1 and the northern areas, and this part of the market has become saturated. There are however many older privately owned apartment buildings, due to the high rental demand – but they are a class below Time Square in terms of what they can offer residents.
This saturation in BKK1 and northern districts is now pushing both developers and investors to look southward. The next phase of Phnom Penh’s real estate evolution is undoubtedly taking root in Toul Tom Poung and its surrounding zones.
Time Square 8: Setting a New Standard
Amid this transformation, Time Square 8 stands as a symbol of what’s to come. Located along Mao Tse Tong Boulevard, just south of BKK1, it represents a milestone in Phnom Penh’s southern skyline — blending contemporary architecture with premium amenities.
Its location is strategic, bridging the established urban fabric of Chamkarmon with the emerging investment corridors extending toward the new Phnom Penh International Airport. Designed with modern urban living in mind, Time Square 8 offers the lifestyle and convenience that global buyers expect, yet remains grounded in the authentic energy of Toul Tom Poung.
This project signifies the dawn of foreign-investable luxury in a district previously defined by traditional apartments and boutique dwellings. For many, it marks the start of a new investment cycle in the south — one characterized by sustainable yields, lifestyle appeal, and capital appreciation potential.
Infrastructure: Building the Future South
Urban expansion is never random. It follows infrastructure, connectivity, and opportunity — and Phnom Penh’s southern districts are now the focal point of all three.
The reason the city is seeing faster development in the south is due to the completion of the new PP international airport, which will link to the city on the south side. Airport to city rail links is also in planning, which will follow Mao Tse Dong Boulevard (on which TS8 is being built).
The new Phnom Penh International Airport, set to become one of Southeast Asia’s most advanced aviation hubs, will be the nucleus of this growth. As it connects to the city through rail and road links, areas like Toul Tom Poung will benefit immensely from improved accessibility, making them prime targets for both residential and commercial investment.
Infrastructure drives demand — and as transit networks expand southward, so too will property values and rental yields. Investors positioning themselves now stand to benefit from this forward momentum.
Economic Indicators and Market Trends
Every data point tells the same story: southern Phnom Penh is on an upward trajectory. The Russian Market area is experiencing sustained rental growth, high occupancy rates, and increasing buyer interest.
This means that we are going to see more and more capital and development entering the Russian market area in years to come – and we can expect future rental rates (post handover) to have seen strong growth. (note the rates I have applied in the presentation reflect real rates as of 2025 – hence they remain conservative returns. In fact, we would expect these rates to be up by around 20% by 2029, given current trends of growth and demand in that area.)
This 20% projected increase underscores the area’s resilience and long-term profitability. The combination of lifestyle appeal, infrastructure, and scarcity of premium housing options ensures sustained value growth over time.
For investors, the takeaway is clear — the sooner one enters this market, the greater the opportunity to capture appreciation as the district matures.
Rental Dynamics: Who Lives Here and Why
The profile of Toul Tom Poung’s residents paints a vivid picture of its appeal. The district is home to a cosmopolitan blend of expatriates, professionals, families, and entrepreneurs. Its atmosphere strikes a rare balance — urban yet personable, lively yet livable.
The expat community gravitates toward the area for its accessibility, affordability, and charm. Many embassies and NGOs have offices nearby, providing a steady influx of professionals seeking mid- to long-term accommodation. For landlords, this ensures a reliable tenant base and stable income.
Rental rates have steadily climbed, but remain within reach for middle-income expatriates — a demographic often priced out of BKK1. This affordability factor, coupled with high occupancy, is why this area is the rising tiger of the Phnom Penh rental market and seeing the fastest growth in rental occupancy and monthly rates.
Comparing BKK1 and Toul Tom Poung
BKK1 may still command the spotlight as Phnom Penh’s premier district, but Toul Tom Poung represents the city’s next wave of development. The contrast between the two is illuminating:
| Feature | BKK1 | Toul Tom Poung (Russian Market) |
|---|---|---|
| Property Prices | Extremely high; near peak saturation | Competitive; room for capital growth |
| Rental Demand | Stable but slowing | Rapidly rising |
| Lifestyle | Polished, commercial, high-end | Authentic, diverse, community-driven |
| Investment Entry | Expensive and crowded | Accessible with high upside |
| Flood Risk | Moderate to high | Minimal (flood-free) |
| Infrastructure Growth | Limited new projects | Expanding rapidly southward |
The conclusion is evident — Toul Tom Poung offers greater future potential, both in lifestyle quality and return on investment.
Investment Outlook: A Conservative Yet Promising Path
Prudent investors understand the value of conservative projections. Nonetheless, I wanted to remain cautious and conservative in the analysis. I’ve also included all additional costs you will bear – in terms of fit out, management and title transfer – to give you a very clear idea of net returns. (everything necessary for a hands-off investment).
This transparent approach aligns with the nature of the Toul Tom Poung market — practical, real, and dependable. Property buyers here benefit from both rental cash flow and capital appreciation, creating a dual-income advantage that is rare in emerging urban zones.
As infrastructure matures and foreign investment regulations evolve, the district’s properties will likely appreciate faster than those in already-established neighborhoods. Investors can expect stable yields, minimal volatility, and long-term growth rooted in real demand — not speculation.
Living the Southside Experience
Beyond the numbers, life in Toul Tom Poung is an experience. It’s the sound of tuk-tuks at dawn, the scent of coffee and lemongrass in the air, and the hum of conversations spilling from outdoor terraces. The streets pulse with energy — where young professionals work remotely from cafés and families stroll to nearby schools.
This diversity makes the area self-sustaining. Weekend farmers’ markets, boutique gyms, and creative workshops keep the community vibrant. The neighborhood’s transformation hasn’t stripped it of character — it has enhanced it.
Unlike some overly modernized zones, Toul Tom Poung maintains a soul — a sense of place that resonates deeply with those who call it home.
The Future South: Phnom Penh’s Next Urban Core
As Phnom Penh continues its metamorphosis into a regional economic hub, the southern districts — anchored by Toul Tom Poung — will take center stage. The combination of proximity to BKK1, strong infrastructure development, and evolving lifestyle offerings makes it inevitable.
Investors who recognize this shift early will reap the benefits of appreciation and consistent rental demand. Developers, too, are beginning to focus resources here, anticipating the next decade of urban growth.
The southern skyline will soon mirror the transformation that BKK1 underwent years ago — but with better planning, stronger transport connections, and a renewed emphasis on livability.
Conclusion: The Rise of Phnom Penh’s Southern Star
The narrative is clear — Toul Tom Poung, or the Russian Market, is no longer a secondary district. It is the fast growth hub of Phnom Penh, driven by genuine lifestyle appeal, robust rental returns, and strategic infrastructure development.
This area is the rising tiger of the Phnom Penh rental market and seeing the fastest growth in rental occupancy and monthly rates. It stands at the intersection of the city’s past and future — where heritage meets modernity, and where opportunity meets authenticity.
For investors, residents, and visionaries, Toul Tom Poung offers more than just real estate. It offers a story of transformation, resilience, and reinvention — the very essence of Phnom Penh’s next chapter.
