Cambodia Property Yield: 7-12% Gross Return in 2026

A two-bedroom apartment in Phnom Penh's BKK1 district, purchased for 95,000 USD, generates 750 USD per month in rental income. That translates to a 9.5% gross annual yield - roughly twice what a comparable unit in Bangkok delivers, and three to four times the return on a flat in most Western European capitals. Cambodia remains one of the last markets in Southeast Asia where this arithmetic is still realistic.

For international investors seeking portfolio diversification beyond developed markets, Cambodia offers a rare combination: a fully dollarized economy (all transactions in USD, eliminating local currency risk), GDP growth projected at 5.8-6.2% per year according to World Bank forecasts, and capitalization rates that Bangkok or Ho Chi Minh City have not seen in over a decade.

But numbers without context can mislead. Knowing where to buy, which legal structure to use, and which risks can erode that attractive yield is essential before committing capital.

Quick answer

• Gross rental yields on residential property in Phnom Penh range from 7% to 12% per year, depending on district and price segment
• Foreign nationals can hold freehold ownership (hard title) only in condominium buildings, on the first floor and above
• All transactions are denominated in USD, eliminating currency risk versus the Cambodian riel (KHR)
• Rental income tax for non-residents: 14% of gross revenue (10% income tax plus 4% business tax)
• Siem Reap, following the opening of Siem Reap Angkor International Airport (SAI), is entering a price growth phase - current rental yields remain at 8-10%
• Sihanoukville is dealing with structural oversupply after the Chinese capital boom; nominal yields appear high but secondary market liquidity is near zero

Options and scenarios

Scenario 1: Phnom Penh condominium - defensive yield

Phnom Penh is the only fully mature real estate market in Cambodia. Districts such as BKK1, Tonle Bassac, and Toul Kork concentrate demand from expatriates, NGO staff, and corporate professionals.

A concrete calculation for a mid-range unit in BKK1:

• Purchase price: 95,000 USD (studio or 1BR, 45 sqm, approx. 2,111 USD per sqm)
• Monthly rent: 750 USD
• Annual gross income: 9,000 USD
• Gross yield: 9,000 / 95,000 = 9.47%
• Tax at 14%: 1,260 USD
• Property management and service fees: approx. 1,200 USD per year
• Net income: 6,540 USD
• Net yield: approximately 6.88%

This net figure is still significantly above what Bangkok, Kuala Lumpur, or most European markets offer at current price levels.

Scenario 2: Siem Reap - growth-oriented play

The opening of Siem Reap Angkor International Airport (SAI) has shifted market dynamics materially. Tourist arrivals in the province grew by more than 40% year-on-year in 2025. Property prices remain 30-50% below Phnom Penh levels.

• Purchase price (1BR in a new project): 55,000-70,000 USD
• Monthly rent: 500-650 USD (short-term rental via platforms may yield more, but requires active management)
• Gross yield: 9-11%
• Key risks: seasonality (low season May-September), limited secondary market, fewer developers with established track records

Scenario 3: Sihanoukville - speculative trap?

Between 2017 and 2019, Chinese capital flooded Sihanoukville with thousands of condominium units. After the pandemic and the ban on online gambling, many projects remain largely vacant. Nominal yields may look attractive (10-15%), but:

• Rental occupancy in many buildings does not exceed 30-40%
• Resale on the secondary market is extremely difficult
• Build quality across many projects is inconsistent
• Urban infrastructure has not kept pace with the scale of development

For a risk-conscious investor, Sihanoukville is a market to monitor, not to buy into in 2026.

Comparison table

Parameter	Phnom Penh (BKK1)	Siem Reap	Bangkok (Sukhumvit)	Western Europe (avg.)
Price per sqm (USD)	2,000-2,800	1,200-1,800	4,000-6,500	5,000-10,000
Gross rental yield	7-10%	8-11%	4-5.5%	2.5-4%
Net rental yield	5.5-7%	6-8%	3-4%	1.5-3%
Transaction currency	USD	USD	THB	EUR/local
Foreign ownership	Condo hard title (floor 1+)	Condo hard title (floor 1+)	Freehold condo (49% quota)	Full ownership
Secondary market liquidity	Medium	Low	High	High
Rental income tax	14% flat	14% flat	5-35% progressive	19-30%
Minimum entry (approx.)	50,000 USD	40,000 USD	80,000 USD	150,000+ USD

Risks and mistakes

1. No land ownership for foreigners. Foreign nationals cannot own land in Cambodia. The only fully secure options are a hard title on a condominium unit (from the first floor upward) or a leasehold on land (up to 50 years with renewal options). Nominee structures involving a Cambodian citizen as the registered owner are formally illegal, though still practiced. A single court ruling can strip an investor of the asset entirely.

2. Developer due diligence gaps. Cambodia has no equivalent of a statutory developer guarantee fund. If a developer fails, deposits can be lost. Always verify a developer's track record, completed project history, and the availability of hard title before committing funds.

3. Oversupply in specific segments. More than 20,000 condominium units were added to the Phnom Penh market between 2019 and 2025 (CBRE Cambodia data). The premium segment (above 3,500 USD per sqm) is saturated. The mid-range segment (1,800-2,500 USD per sqm) continues to absorb demand more effectively.

4. No double taxation treaty with many investor home countries. Cambodia has not signed double taxation agreements with a number of Western countries. Investors should verify their specific tax position with a qualified advisor, as this can affect the effective net return versus markets like Thailand where treaties are in place.

5. USD/home currency exchange risk. While USD-denominated transactions eliminate exposure to the Cambodian riel, investors who repatriate profits convert USD back into their home currency. Dollar weakening can reduce real returns when measured in euros, pounds sterling, or other base currencies.

6. Exit strategy and liquidity. Cambodia's secondary market is shallow. Selling a unit typically takes 6 to 18 months. This illiquidity premium must be factored into any investment plan from the outset. Liquidity is not comparable to Bangkok, Singapore, or major European cities.

FAQ

What is the realistic property yield in Cambodia in 2026?

Gross rental yields on residential property in Phnom Penh range from 7% to 12% per year depending on location and price segment. After taxes and management costs, net yields fall to 5.5-8% - still roughly double what Bangkok offers at comparable asset quality.

Can a foreigner buy property in Cambodia?

Yes, but only a unit within a condominium building, on the first floor or above, with a hard title deed. Foreign nationals may collectively own a maximum of 70% of floor space in any single building. Land ownership is not permitted for foreigners; leasehold (up to 50 years) is the alternative.

In what currency are real estate transactions conducted in Cambodia?

All transactions are denominated in US dollars (USD). Cambodia is one of the most dollarized economies in the world. Prices, rents, and notarial documents are all USD-denominated, which eliminates currency risk versus the Cambodian riel.

What taxes apply to rental income in Cambodia?

Rental income is taxed at 14% of gross revenue in Cambodia (10% income tax plus 4% business tax). Investors must also account for any reporting obligations in their home country. The absence of a double taxation treaty with many Western nations means additional tax planning is advisable.

Which districts in Phnom Penh offer the best rental yields?

BKK1 and Tonle Bassac offer the most stable expatriate demand with gross yields of 8-10%. Toul Kork is a more affordable alternative with higher nominal yields (9-12%) but greater occupancy variability.

Is Sihanoukville a good investment in 2026?

Not for a conservative investor. Post-boom oversupply, low occupancy rates, and poor secondary market liquidity make Sihanoukville a speculative, higher-risk position. It is a market worth monitoring for future recovery but not one to buy into at this stage.

What does an exit strategy look like for Cambodia property?

The secondary market is thin. Average resale time is 6 to 18 months. The most effective strategy is purchasing at the pre-sale stage from a reputable developer and reselling after project completion, before the local market absorbs the new supply.

How does Cambodia compare to Thailand for property investment?

Cambodia offers higher gross yields (7-12% vs. 4-6% in Bangkok), lower entry prices, and full USD denomination. Thailand has superior liquidity, stronger legal frameworks, more mature developer accountability, and better infrastructure. Risk-adjusted, Thailand suits conservative investors; Cambodia suits those seeking yield with manageable risk and a longer horizon.

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