Sihanoukville Property ROI in 2026: What Does an Apartment Actually Earn?

In 2019, apartment prices in Sihanoukville were rising at 30% per year. Then came the pandemic, the exodus of Chinese casino operators, and a wave of unfinished developments. By 2026, the city is back on investors' radars - but with fundamentally different underlying conditions. The core question for any international investor is straightforward: can you generate real, reliable income here, and exactly how much?

The short answer: net rental yield on a Sihanoukville apartment ranges between 5.5% and 8.5% per year, depending on location, property standard, and rental model. That comfortably exceeds typical fixed-deposit rates in most Western markets and is broadly comparable to the best-performing locations in Phuket - though with meaningfully higher risk. Below, every component of that equation is examined in detail.

Quick answer

• Purchase price for a typical 35-55 sqm apartment in a completed project: $45,000 to $85,000 USD
• Gross monthly rent under long-term leasing: $400 to $700 USD (indicative range)
• Gross yield on long-term rental: 8% to 12% - among the highest in the Southeast Asian region
• Net yield after management fees, vacancy, and maintenance: 5.5% to 8.5%
• Occupancy rate for short-term tourist rental: 45% to 60% in peak season (November to April), 20% to 35% in the off-season
• Property management costs: typically 15% to 25% of rental income (up to 25% to 30% for short-term models)

Options and scenarios

Scenario 1: Long-term rental to expats and SEZ workers

Sihanoukville in 2026 is no longer defined solely by its beaches. The Cambodian government has been actively expanding the Sihanoukville Special Economic Zone (SSEZ), while the deep-water port handles a growing volume of container traffic. Logistics firms, garment manufacturers, and food processors employ managerial staff who require quality housing. Demand for long-term rentals on six- to twelve-month contracts has been rising steadily.

A worked example for a 45 sqm apartment near Otres Beach or Independence Beach:

• Purchase price: $62,000 USD
• Gross monthly rent: $550 USD
• Annual gross income: $6,600 USD
• Gross yield: 10.6%
• Annual costs: building maintenance fee ($600), management at 15% ($990), insurance and minor repairs ($300), one month vacancy allowance ($550) - total $2,440 USD
• Net annual income: $4,160 USD
• Net yield: 6.7%

For reference, a studio apartment in a major European capital costing a comparable amount in USD terms typically delivers a net yield of 3.5% to 4.5% after costs. The difference is material, though it comes with currency and jurisdictional risk.

Scenario 2: Short-term rental to tourists and digital nomads

Sihanoukville is actively rebuilding its tourism base. The Dara Sakor international airport project (targeting 10 million passengers annually at full build-out, though that goal remains years away) and expanding direct flight connections from Bangkok, Kuala Lumpur, and Ho Chi Minh City are improving accessibility. A standard one-bedroom apartment listed on major booking platforms currently fetches $35 to $65 USD per night, depending on season and quality.

At an average annual occupancy of 50% and an average nightly rate of $45 USD:

• Annual gross income: $8,213 USD
• Costs (25% management, cleaning, platform fees, rainy-season vacancy): approximately $3,700 USD
• Net annual income: $4,513 USD
• Net yield (on a $62,000 purchase): 7.3%

The yield is higher than the long-term model, but this scenario requires either active hands-on management or a reliable local operator.

Scenario 3: Developer-guaranteed rental returns

Several Sihanoukville developers offer guaranteed rental returns of 6% to 10% over two to five years. The proposition sounds attractive, but the mechanics are simple: the guarantee is priced into the purchase cost. You pay above market value, and the developer returns the premium in instalments. If the developer runs into financial difficulty or exits the market - which occurred with multiple operators in Sihanoukville between 2020 and 2023 - the guarantee becomes worthless. The appropriate stance is to treat any such guarantee as a marketing feature rather than a foundation for your investment thesis.

Comparison table

Parameter	Sihanoukville (long-term)	Sihanoukville (short-term)	Phuket (long-term)	European studio (comparable price)
Purchase price (USD)	$62,000	$62,000	$120,000	$112,500
Gross yield	10.6%	13.2%	6-8%	5.5-6.5%
Net yield	6.7%	7.3%	4.5-6%	3.5-4.5%
Annual occupancy	92%	50%	70%	95%
Management cost	15%	25%	20%	8-10%
Legal risk	High	High	Moderate	Low
Resale liquidity	Low	Low	Moderate	High
Capital appreciation (5-year forecast)	3-8% p.a.	3-8% p.a.	4-7% p.a.	2-4% p.a.

All figures are indicative, based on market data from the first half of 2026.

Risks and mistakes

1. Title structure and legal ownership. Foreigners cannot own land in Cambodia. However, a foreign national can legally purchase an apartment above ground floor under a strata title (equivalent to individual unit ownership), or alternatively acquire property through a Cambodian-registered company. Before committing, verify that the project holds a registered title with the Ministry of Land Management. A significant number of buildings constructed during the 2017 to 2019 boom never obtained complete documentation.

2. Unfinished developments. Market estimates suggest that 30% to 40% of projects started at the height of the Sihanoukville boom remain incomplete. Purchase only finished or near-finished buildings with full documentation in place. Buying off-plan in Sihanoukville carries risks more akin to speculation than investment.

3. Currency exposure. Cambodia operates a heavily dollarised economy, with over 80% of transactions conducted in USD, which simplifies practical matters. However, international investors holding other base currencies face USD exchange rate risk. A depreciation of the dollar against your home currency directly reduces the value of your asset when converted back.

4. Tax obligations. Cambodia levies a 10% rental income tax and a 4% transfer tax on property sales. Investors should consult a qualified tax adviser familiar with foreign-sourced income in their home jurisdiction - treatment of overseas rental income varies significantly by country. Cambodia does not have double-taxation treaties with many Western nations, and specific rules around crediting foreign taxes paid will depend on your individual tax residency and circumstances.

5. Exit strategy. The secondary market in Sihanoukville is thin. Average time to sell an apartment is approximately 8 to 18 months. By comparison, Phnom Penh averages 3 to 6 months and Phuket 4 to 10 months. Plan for a minimum investment horizon of 5 to 7 years.

6. Location reputation. Sihanoukville continues to manage a reputational legacy from the illegal casino and online fraud operations that dominated parts of the city until the government's enforcement campaign, which intensified from 2022 onwards. Focus purchases on districts covered by official urban regeneration plans: Ochheuteal Beach, Independence Beach, and the SSEZ corridor.

FAQ

What net return can I realistically expect from a Sihanoukville apartment?

Indicative net yield runs from 5.5% to 8.5% per year, depending on rental model and neighbourhood. This exceeds most Western fixed-income alternatives and is broadly comparable to top-tier Phuket properties, with higher risk.

Can a foreigner legally buy an apartment in Cambodia?

Yes. Foreign nationals can purchase apartments above ground-floor level under a strata title. Direct ownership of land or ground-floor units is not permitted for non-citizens.

What are the annual running costs for a Sihanoukville apartment?

Building maintenance fees typically run at $1.00 to $1.50 USD per sqm per month. Property management costs 15% to 25% of rental income. Insurance and repairs add roughly $300 to $500 USD per year. In total, costs absorb approximately 30% to 40% of gross rental income.

Are developer rental guarantees a reliable income source?

They should not be treated as secure income. Guarantees are typically built into the purchase price, and if the developer loses financial stability, payments cease. Multiple Sihanoukville developers stopped guarantee payments between 2020 and 2023.

How is rental income taxed in Cambodia?

Cambodia applies a 10% withholding tax on rental income. Investors should separately review their home-country tax obligations, as treatment of foreign-sourced income differs by jurisdiction. Professional tax advice is strongly recommended.

How long does it take to sell a Sihanoukville apartment on the secondary market?

Typically 8 to 18 months. The resale market is shallow, with buyers primarily coming from China, South Korea, and increasingly Europe. Plan your liquidity accordingly.

Is buying off-plan in Sihanoukville advisable in 2026?

No. The risk of project non-completion remains elevated. Restrict purchases to completed or nearly-completed developments with a full set of legal documentation verified by an independent Cambodian lawyer.

In what currency are property transactions conducted?

Almost exclusively in US dollars (USD). Cambodia is one of the most dollarised economies in Asia. The Cambodian riel (KHR) is used for small everyday transactions but is not used in real estate deals.

Which areas of Sihanoukville offer the best ROI?

The most consistent yields come from apartments near Otres Beach and Independence Beach, where tourist and expat demand is concentrated. The SSEZ corridor offers longer-term growth potential but currently has weaker service infrastructure.

How do I get to Sihanoukville from Europe?

The most practical route is via Bangkok (approximately 10 to 11 hours from major European hubs), then a one-hour flight to Sihanoukville, or a four- to five-hour road transfer from Phnom Penh. The time difference from Central European Time is plus 5 hours in winter and plus 6 hours in summer.

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