Cambodia Property Rental Yields 2026: 7-12%

A 35 sqm studio in a Class B high-rise in Phnom Penh generating 850 USD per month against a purchase price of 72,000 USD delivers a gross yield of 14.2% - a figure that is simply unavailable in most European capitals or even Bangkok. But before committing capital, investors need to understand exactly what drives those numbers and where the risks are hidden.

Cambodia remains one of the few markets in Southeast Asia where rental yields consistently exceed 7% gross for mid-market residential units. According to Global Property Guide data for the first half of 2026, Phnom Penh ranks among the top five Asian cities by rental profitability. However, 'gross' and 'net' are two very different worlds in Cambodia.

Quick answer

Gross rental yields in Phnom Penh range from 7% to 12% annually for mid-market apartments (30-50 sqm, priced at 55,000-95,000 USD)
Premium segments (Koh Pich, BKK1) deliver lower yields of 5-7% gross, but offer greater tenant stability and stronger resale liquidity
After deducting property management fees (8-12% of rent), vacancy allowance (roughly 1-2 months per year), and operating costs, net yield falls to 5-8%
Siem Reap is rebuilding its tourist base post-pandemic - short-term rentals generate 8-10% gross in season, but seasonality creates significant cash flow gaps
Sihanoukville in 2026 continues to suffer from oversupply following the 2017-2019 casino boom - headline yields are distorted by low purchase prices, but liquidity is near zero
Cambodia is a fully dollarised economy - all income and expenses are denominated in USD, eliminating local currency risk

Options and scenarios

Option 1: Studio in Phnom Penh, mid-market segment

Location: Toul Kork or Sen Sok district. Purchase price: 65,000 USD for 32 sqm. Monthly rent: 650 USD (long-term lease to expats or managerial staff at Cambodian corporations). Gross yield: 12%. After deducting management fees (10%, equalling 780 USD annually), common area charges (50 USD/month, 600 USD annually), insurance (150 USD), and one month vacancy: net income amounts to 5,270 USD per year, translating to a net yield of 8.1%.

This option delivers the highest profitability but requires tolerance for developer risk. High-rises in Toul Kork are frequently built by companies with shorter track records than established BKK1 developers.

Option 2: Apartment in BKK1 or Koh Pich, premium segment

Purchase price: 130,000 USD for 55 sqm in a completed project with strata title (hard title). Monthly rent: 900-1,100 USD. Gross yield: 8.3-10.2%. Net yield after costs: 5.5-7%. Lower vacancy rates due to a professional tenant base (international organisations, embassies, NGOs). Resale value is stronger because the location is recognised by international buyers.

Option 3: Siem Reap, short-term tourist rental

Purchase price: 45,000-60,000 USD for a studio near Old Market. In-season income (November to March): 40-55 USD/night at 70% occupancy. Off-season income: 20-30 USD/night at 35% occupancy. Estimated gross annual income: 8,000-11,000 USD. Gross yield: 15-20% on paper, but after accounting for cleaning costs, booking platform commissions (Booking.com/Airbnb charge 15-20%), management fees, and seasonal vacancies - net yield falls to 6-9%. Additional risk: short-term rental regulations may change.

Option 4: Sihanoukville - speculative recovery play

Prices have dropped 40-60% from 2019 peaks. Units can theoretically be acquired for 25,000-35,000 USD. The problem is a near-total absence of stable rental demand, extremely low secondary market liquidity, and questionable build quality from the boom years. Calculating a reliable yield is difficult because finding a 12-month tenant is close to impossible. This option is pure speculation, not an income-generating investment.

How to calculate a real-world yield - a practical example

Example: 35 sqm studio in Toul Kork, Phnom Penh

Purchase price: 70,000 USD
Transaction costs: property transfer tax 4% plus legal fees approx. 1,000 USD - total: 3,800 USD
Total entry cost: 73,800 USD
Monthly rent: 700 USD
Annual gross income: 8,400 USD
Management fee (10%): -840 USD
Common area fee (55 USD/month): -660 USD
Vacancy allowance (1 month): -700 USD
Minor repairs and maintenance: -300 USD
Annual net income: 5,900 USD
Net yield on total entry cost: 7.99%

Additionally: Cambodia levies a 14% withholding tax on rental income above a certain threshold (exact treatment depends on legal structure). International investors must also verify their home country tax obligations. The absence of a double taxation treaty between Cambodia and many Western countries means tax paid in Cambodia may not be fully credited abroad. Effective post-tax net yield: estimated 5.5-6.5% for most international investors. Always consult a qualified tax adviser.

Comparison table

Parameter	Phnom Penh mid-market	Phnom Penh premium	Siem Reap tourist	Sihanoukville
Purchase price (USD/sqm)	1,800-2,200	2,200-3,200	1,400-1,800	800-1,200
Gross yield	10-12%	7-9%	8-10% (averaged)	No reliable data
Net yield (estimate)	7-9%	5-7%	5-7%	Below 3%
Vacancy	1-2 months/year	Under 1 month/year	3-5 months/year	6+ months/year
Resale liquidity	Moderate	Good	Low	Very low
Developer quality	Variable	High	Moderate	Low
Transaction currency	USD	USD	USD	USD
vs. Bangkok (gross)	+3-5 pp higher	+1-3 pp higher	Comparable	Not applicable

Ownership structure and its impact on yield

Foreigners in Cambodia cannot own land. However, they can acquire a unit in a multi-storey condominium under strata title (hard title), provided the unit is located on the first floor or above (ground floor units are excluded). Foreign ownership within any single building cannot exceed 70%.

Alternatives include leasehold arrangements for up to 50 years with renewal options, or corporate structures involving a Cambodian shareholder. The latter carries meaningful legal risk - unlike Thailand, the Cambodian judicial system is less predictable and enforcement of property rights remains an area of active development.

Title type directly affects yield calculations: a hard title property is easier to resell and finance, which supports exit value. A leasehold asset depreciates in line with the shortening remaining term.

Risks and mistakes

1. Inflated yields in developer marketing materials. Developers frequently advertise 'guaranteed' returns of 8-15% for the first 2-3 years, with the guarantee cost embedded in the sale price. This is a financial mechanism similar to a deferred discount - not a genuine yield.

2. Vacancy is not evenly distributed across the holding period. A newly completed building in its first six months may achieve only 30% occupancy. Yield calculations should assume full occupancy only from the second year onwards.

3. USD/home currency exchange risk. Dollarisation protects against Cambodian riel volatility, but international investors still carry exposure to USD movements against their home currency. A 10% depreciation of the dollar can eliminate an entire year of net yield on conversion.

4. Oversupply in certain segments. Phnom Penh in 2026 has growing supply in the luxury segment (above 3,000 USD/sqm). Demand in this segment is heavily dependent on Chinese buyers, whose activity is difficult to forecast reliably.

5. Tax complexity for international investors. Cambodia levies up to 14% withholding tax on rental income. The absence of double taxation treaties with many countries means that tax credit mechanisms vary widely. Qualified tax advice is not optional - it is essential.

6. Developer due diligence. Cambodia has no equivalent of a national developer registry. Verifying a company's track record, construction permits, and the underlying land title requires a local lawyer. Cost: 500-1,500 USD - an expenditure that can protect the entire investment.

FAQ

What is the average rental yield in Cambodia in 2026?

In Phnom Penh, average gross yields range from 7% to 12% depending on segment and location. After management costs, vacancy, and operating expenses, net yield typically falls to 5-8%. The highest returns are found in 30-40 sqm studios in Toul Kork and Sen Sok districts.

Can a foreigner buy an apartment in Cambodia?

Yes. Foreigners can acquire a condominium unit under strata title (full ownership) provided the unit is on the first floor or higher. Foreign ownership within any building is capped at 70%. Foreigners cannot own land directly.

In what currency are Cambodia property transactions conducted?

Cambodia is a dollarised economy. Virtually all property transactions, rents, and service charges are denominated and settled in US dollars (USD). This eliminates exposure to the Cambodian riel for most investors.

How does Cambodia compare to Thailand in terms of rental yields?

Cambodia offers gross yields approximately 2-5 percentage points higher than comparable locations in Thailand. However, the Thai market is significantly more liquid, offers stronger legal protections for buyers, and has a longer institutional investment track record. The higher Cambodian yield is largely a risk premium.

What taxes apply to rental income from Cambodia property?

Cambodia imposes up to 14% withholding tax on rental income above a defined threshold. International investors must also assess their home country tax obligations. The absence of double taxation treaties with many Western countries complicates the calculation - professional tax advice is essential.

Is Sihanoukville worth investing in?

In 2026, Sihanoukville remains a speculative market with very low liquidity. Prices are 40-60% below 2019 peaks, but rental demand is minimal. This is suitable only for investors with a 5-10 year horizon and full tolerance for potential illiquidity.

How much does property management cost in Phnom Penh?

Professional property management companies charge 8-12% of monthly gross rent. Services typically include tenant sourcing, lease administration, minor repairs, and financial reporting. On a 700 USD monthly rent, this represents a cost of 56-84 USD per month.

What does a Cambodia property exit strategy look like?

The secondary market in Phnom Penh is developing but remains less liquid than Bangkok or Kuala Lumpur. Selling a premium unit in BKK1 or Koh Pich typically takes 3-6 months. Mid-market or smaller city properties may require 6-18 months to sell. Holding a hard title significantly accelerates the process and broadens the buyer pool.

What is the minimum budget for a rental property in Phnom Penh?

A realistic entry point for a mid-market studio generating meaningful rental income is approximately 55,000-70,000 USD, including transaction costs. Below this threshold, build quality and developer reliability tend to deteriorate significantly.

Is Cambodia property suitable as a first international real estate investment?

It can be, provided the investor enters with a single hard-title unit in a verified building with professional management, treats the first year as a learning period, and has appropriate legal and tax advice in place. Overexposure to a single speculative location is the most common mistake made by first-time buyers in the market.

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Cambodia Property Rental Yields: 7-12% Gross in 2026