Sihanoukville Apartment ROI in 2026: What Returns Can You Realistically Expect?

In 2019, a Sihanoukville apartment generated 12-15% gross yield annually. Then came the pandemic, the withdrawal of Chinese casino operators, and a wave of vacancies that reshaped the market almost overnight. In 2026, this Cambodian port city is entering a new cycle - supported by a completed expressway from Phnom Penh, a new international airport, and a structurally different rental demand base.

The short answer: yes, you can still generate meaningful returns here. Net yield today ranges between 5.2% and 8.9% depending on the scenario. That continues to outperform many Western European rental markets and broadly competes with medium-term government bonds in major currencies - though with a materially different risk profile.

The critical difference: Sihanoukville adds currency risk (USD exposure from non-USD home currencies), emerging market regulatory risk, and significantly lower exit liquidity compared to established markets like Bangkok or Singapore.

Quick answer

• Entry price: a studio of 28-35 sqm in a new development costs approximately $38,000-$62,000 USD
• Gross rent (long-term rental): $350-$500/month targeting expats and hospitality sector employees
• Gross rent (short-term/Airbnb): $45-$85/night at 45-60% occupancy during the 2025/26 season
• Annual running costs: management fee 8-15% of rental income, CAM (common area maintenance) fee $1.50-$2.50/sqm/month, Cambodian rental income tax 10% of net profit
• Net yield: approximately 5.2-8.9% after all operating costs, before home-country income tax
• Capital appreciation: estimated at 3-7% per year in the Otres and Ream zones following the new airport opening

Options and scenarios

Scenario 1: long-term rental - stable cash flow

An investor purchases a 30 sqm studio for $50,000 in a class B+ building in the Otres zone. A one-year lease is signed with a tenant - typically an expat, NGO worker, or hospitality professional - at $420/month.

The calculation chain:

• Annual gross rent: 420 x 12 = $5,040
• CAM fee: $2.00 x 30 sqm x 12 = -$720
• Management fee (10% of rent): -$504
• Minor repairs and furnishings: -$300/year
• Cambodian rental tax (10% of net profit): -$352
• Net rental income: $3,164
• Net yield: 6.3%

This sits comfortably above net yields in most Western European rental markets at comparable price points. Cambodia has tax treaties with a number of countries to avoid double taxation, so investors should consult a local tax advisor to understand how Cambodian tax paid interacts with their home-country tax obligations. In many cases, the additional home-country liability is minimal.

Scenario 2: short-term rental - higher yield, higher risk

The same apartment listed on booking platforms. Rate: $60/night, occupancy: 52% (190 nights per year - a realistic figure excluding the monsoon season).

• Gross income: 60 x 190 = $11,400
• Platform commission (15%): -$1,710
• Management fee (18% - higher for short-term): -$2,052
• CAM fee: -$720
• Laundry, cleaning, wear and tear: -$950
• Cambodian tax: -$597
• Net income: $5,371
• Net yield: approximately 8.9% after operating costs and Cambodian taxes

Important caveat: 52% occupancy is an optimistic figure. During the rainy season (June to October), Sihanoukville loses a substantial share of tourist traffic. A realistic downside scenario of 38% occupancy reduces net yield to approximately 5.8%. Model both scenarios before committing capital.

Scenario 3: developer-guaranteed rental returns

A number of Sihanoukville developers offer guaranteed rental returns of 7-10% per year for 3-5 years. The mechanism is straightforward: the cost of the guarantee is embedded in the sale price (typically 10-18% above market value) or funded from deposits paid by new buyers.

Risks specific to guaranteed returns in Cambodia:

• The developer may become insolvent before the guarantee period ends
• There is no buyer protection mechanism equivalent to those found in mature regulated markets
• After the guarantee expires, prevailing market rents are often 30-40% lower than the guaranteed figure
• Cambodia has no equivalent of a statutory developer liability framework protecting off-plan buyers

Recommendation: treat a rental guarantee as a marketing feature, not a component of your base-case financial model.

Comparison table

Parameter	Sihanoukville (long-term)	Sihanoukville (short-term)	Phuket (Thailand)	Major EU city
Purchase price (30 sqm studio)	$50,000	$50,000	$95,000	$120,000
Annual gross rent	$5,040	$11,400	$7,600	$7,200
Gross yield	10.1%	22.8%	8.0%	6.0%
Annual operating costs	$1,524	$5,432	$2,900	$1,800
Net yield (before home-country tax)	6.3%	8.9%	4.9%	4.5%
Reference occupancy	95%	52%	65%	95%
Annual capital appreciation (estimate)	3-7%	3-7%	4-6%	3-5%
Resale liquidity	Low	Low	Medium	High
Currency risk (vs USD base)	High (USD/KHR)	High (USD/KHR)	Medium (THB)	Low

All figures are indicative and reflect market conditions in the first half of 2026. Sources: local market data, Knight Frank Cambodia, Varsovia Estate internal estimates.

Risks and mistakes

1. No freehold land title for foreigners. Foreign nationals cannot own land in Cambodia. They can, however, own units from the first floor upward under a strata title (condominium title). Always verify that the project holds a properly registered LMAP or 'hard title' before signing anything.

2. Developer due diligence. Between 2017 and 2020, Sihanoukville attracted hundreds of projects of questionable quality. In 2026, a number of buildings remain unfinished or abandoned. Verify: construction permits, developer track record, current build progress, and references from existing buyers.

3. Currency risk. Cambodia operates a largely dollarised economy (approximately 80% of transactions in USD), but most international investors convert from their home currency into USD. Annual exchange rate movements of 5-8% can erode a significant portion of net yield.

4. Exit liquidity. The secondary market in Sihanoukville is thin. Average time to sell is 8-18 months (compare: Bangkok 3-6 months, major European capitals 2-4 months). A viable strategy is to purchase off-plan at a 10-15% discount and sell before or shortly after completion, when liquidity peaks.

5. Hidden transaction costs. Ownership transfer fee in Cambodia is 4% of the property value. Add legal and notarial costs of approximately 1-2%, bringing total acquisition costs to 5-6% of the purchase price. On exit, capital gains tax is 20%, though in practice the effective rate is often negotiated.

6. Rental guarantees without legal backing. There is no statutory framework protecting buyers if a developer stops paying. A rental guarantee is a civil contract with no collateral. If the developer defaults, legal recourse in Cambodia is costly, slow, and unpredictable.

7. Seasonality. Sihanoukville loses 40-60% of tourist traffic during the monsoon season. Plan cash flow assuming 4-5 months of materially lower occupancy each year.

FAQ

What is the realistic ROI on a Sihanoukville apartment in 2026?

Net yield after operating costs and Cambodian taxes ranges from 5.2% to 8.9% per year, depending on the rental model. Short-term rentals offer higher returns but carry greater seasonality risk and higher management costs.

How much does an apartment in Sihanoukville cost?

A studio of 28-35 sqm in a new class B+ project costs approximately $38,000-$62,000 USD. Premium seafront units start from around $75,000 USD.

Can foreign investors buy property in Cambodia?

Yes. Foreign nationals can purchase residential units from the first floor upward on a strata title (condominium title). They cannot own land or ground-floor units.

How is rental income from Cambodia taxed for international investors?

Cambodia charges 10% tax on net rental income. Whether this can be offset against home-country tax obligations depends on whether a double taxation treaty exists between Cambodia and the investor's country of residence. Always consult a qualified tax advisor in your home jurisdiction before investing.

Are developer rental guarantees in Cambodia safe?

No statutory protection exists for buyers if a developer stops paying. A rental guarantee is a civil contract without collateral security. Treat it as a marketing incentive, not a core financial assumption.

What is the exit strategy for a Sihanoukville investment?

The secondary market is illiquid. Average selling time is 8-18 months. The most effective strategy is to buy off-plan at a 10-15% discount and sell before handover or in the early months after completion, when demand from new buyers is highest.

Is Sihanoukville a better investment than Phnom Penh?

Sihanoukville offers higher gross yields (10-22% vs 7-9% in Phnom Penh) but lower liquidity and higher seasonal risk. Phnom Penh has more stable demand from the expat community and a growing middle class, with a more active secondary market.

What are the total costs when buying an apartment in Cambodia?

Transfer fee of 4% of property value, plus legal and notarial costs of approximately 1-2%, totalling 5-6% of the purchase price. Budget separately for travel to conduct on-site due diligence - Sihanoukville is accessible from Phnom Penh in 4-5 hours via expressway or by regional flight.

Will the new Sihanoukville airport change the property market?

The new Dara Sakor International Airport (SAI) is designed to handle regional and charter flights. Market estimates project a 25-40% increase in tourist arrivals by 2028, which is expected to support property price growth in the Otres and Ream zones.

In which currency should I structure my investment?

Cambodia is a largely dollarised economy. Rents and property prices are denominated in USD. International investors carry USD exchange rate risk relative to their home currency. Holding a USD-denominated cash reserve can help manage this exposure.

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