Authored by the expert who managed and guided the team behind the Cambodia Property Pack
Everything you need to know before buying real estate is included in our Cambodia Property Pack
Cambodia's rental market offers some of the most attractive yields in Southeast Asia, with average gross returns reaching 7.68% as of September 2025.
Understanding rental yields in Cambodia requires examining various factors including property types, locations, and ongoing costs that significantly impact your net returns. The market shows strong performance across condominiums, villas, and shophouses, though yields vary considerably between tourist areas and urban centers.
If you want to go deeper, you can check our pack of documents related to the real estate market in Cambodia, based on reliable facts and data, not opinions or rumors.
Cambodia delivers gross rental yields averaging 7.68% in 2025, with condos performing best at 6-8% and coastal properties reaching up to 8.5%.
Net yields are typically 1.5-2% lower after accounting for maintenance, taxes, and vacancy costs, making Cambodia competitive with regional markets like Manila and superior to Bangkok's core areas.
| Property Type | Typical Yield Range | Best Locations | Average Purchase Price | Monthly Rent Range | Main Costs | Vacancy Rate |
|---|---|---|---|---|---|---|
| Studio Condos | 8-10% | Phnom Penh BKK1, Siem Reap | $50,000-$90,000 | $400-$600 | 4% transfer tax, 0.1% property tax | 15% |
| 1BR Condos | 6-8% | Russian Market, Chroy Changvar | $94,000-$100,000 | $550-$600 | Management 5-10%, maintenance $250-500/year | 15% |
| 2BR Condos | 6-7% | Central Phnom Penh, Coastal areas | $165,000-$238,000 | $1,000-$1,100 | Insurance $100/year, legal fees $2,000-5,000 | 15% |
| 3BR Condos | 5-7% | Premium districts, Expat areas | $287,000-$354,000 | $2,000-$2,200 | Higher maintenance $600-1,200/year | 18% |
| Villas | 5-7% | Kep, Kampot, Central Phnom Penh | $300,000+ | $2,000-$5,000 | Property management essential | 20-25% |
| Shophouses | 6%+ | Old Phnom Penh, Commercial areas | $200,000+ | $1,200-$2,500 | Renovation costs variable | 18-25% |
| Land Plots | 0-1% | Development zones | Varies widely | Minimal rental income | Capital appreciation focus | N/A |
What's the current average rental yield in Cambodia, and how is it calculated?
The average gross rental yield in Cambodia stands at 7.68% as of September 2025, representing an increase from 7.40% recorded in early 2025.
Rental yield calculation follows a straightforward formula: divide your annual rental income by the total purchase price (including all fees and closing costs), then multiply by 100 to get the percentage. For example, if you earn $6,000 annually from a property that cost you $85,000 total, your gross yield is 7.06%.
Net yields in Cambodia typically run 1.5% to 2% lower than gross yields due to ongoing expenses like property taxes, maintenance costs, management fees, and vacancy periods. This means a property showing 7.5% gross yield will likely deliver around 5.5% to 6% net yield after all expenses.
The calculation becomes more complex when factoring in mortgage payments, as leveraged properties can show higher returns on your actual cash investment but involve additional interest costs that affect net profitability.
It's something we develop in our Cambodia property pack.
How do yields vary between property types like condos, villas, shophouses, and land plots?
Condominiums deliver the strongest rental yields in Cambodia, typically ranging from 6% to 8% for standard units, with premium locations and smaller studios pushing yields above 8% and sometimes reaching 10%.
Villas generally produce lower yields between 5% and 7% because their higher purchase prices don't translate proportionally to rental income, though luxury villas in tourist areas like Kep and Kampot can achieve the higher end of this range.
Shophouses in Phnom Penh's older districts often generate yields of 6% or higher, particularly those in commercial areas where ground-floor retail space commands premium rents while upper floors provide residential income.
Land plots rarely generate meaningful rental income since undeveloped land typically isn't rented out, making them unsuitable for yield-focused investors who should instead focus on capital appreciation potential.
Smaller units consistently outperform larger properties in yield terms because rent-to-purchase-price ratios favor compact spaces that attract budget-conscious tenants, expats, and short-term visitors.
Which areas or neighborhoods in Cambodia offer the highest and lowest yields right now?
Coastal and tourist-focused areas like Kep, Kampot, and Siem Reap currently deliver the highest yields, often reaching 8.5% due to strong vacation rental demand and lower property acquisition costs compared to central Phnom Penh.
Phnom Penh's established expat districts including BKK1, Russian Market area, and Chroy Changvar typically generate yields between 6.55% and 7%, offering more stable long-term rental income with consistent tenant demand.
The lowest yields appear in central luxury developments and large villa properties where high purchase prices aren't matched by proportionally higher rents, sometimes dropping below 5% in premium locations.
Peripheral areas around Phnom Penh often struggle with yields due to limited rental demand despite lower property prices, while oversupplied condo markets in certain districts can also depress rental rates.
As of September 2025, the sweet spot for yield-focused investors remains tourist areas for vacation rentals and established expat neighborhoods for long-term leasing strategies.
How do property size and surface area influence rental yield?
Smaller properties consistently deliver higher rental yields because rent doesn't scale linearly with property size, making studio apartments and one-bedroom condos the most profitable per dollar invested.
Studio apartments often achieve yields above 8% since their low purchase prices combined with decent rental rates create favorable yield mathematics, particularly in areas with strong expat or tourist demand.
Two-bedroom properties typically show moderate yields around 6-7% as they balance purchase cost against rental income, though they often enjoy lower vacancy rates due to broader tenant appeal.
Large properties like four-bedroom villas frequently yield below 5% because their high acquisition costs aren't offset by proportionally higher rents, with the luxury market showing particular yield compression.
The optimal size for yield-focused investors appears to be one to two-bedroom properties that maximize the rent-to-price ratio while maintaining broad tenant appeal across expat, local, and tourist markets.
What's the typical total purchase price for different property types, including fees and closing costs?
| Property Type | Base Price Range (USD) | Transfer Tax | Legal Fees | Annual Property Tax | Total Additional Costs |
|---|---|---|---|---|---|
| Studio Condo | $50,000 - $90,000 | 4% of purchase price | $2,000 - $3,000 | 0.1% (if >$25,000) | $4,000 - $6,600 |
| 1BR Condo | $94,000 - $100,000 | 4% of purchase price | $2,500 - $4,000 | 0.1% annually | $6,260 - $8,000 |
| 2BR Condo | $165,000 - $238,000 | 4% of purchase price | $3,000 - $5,000 | 0.1% annually | $9,600 - $14,520 |
| 3BR Condo | $287,000 - $354,000 | 4% of purchase price | $4,000 - $5,000 | 0.1% annually | $15,480 - $19,160 |
| Villa (Central) | $300,000+ | 4% of purchase price | $4,000 - $6,000 | 0.1% annually | $16,000 - $25,000+ |
| Shophouse | $200,000+ | 4% of purchase price | $3,000 - $5,000 | 0.1% annually | $11,000 - $15,000+ |
All property transactions in Cambodia are conducted in US dollars, eliminating currency exchange risk for international investors and providing price stability compared to local currency markets.
Bank financing is available for both locals and foreigners, though foreigners typically face higher interest rates of 7-9% compared to 5-7% for Cambodian nationals, with most lenders requiring 30-40% down payments.
Many developers offer installment payment plans during construction phases, allowing buyers to spread payments over 12-24 months rather than paying the full amount upfront.
What ongoing costs should I factor in when calculating net yield?
Maintenance costs for condominiums typically range from $250 to $1,200 annually depending on the building's age, amenities, and management quality, with newer developments generally requiring higher monthly fees.
Property management fees consume 5% to 10% of your annual rental income if you hire a local agency to handle tenant relations, rent collection, and property maintenance on your behalf.
Property tax in Cambodia remains minimal at just 0.1% annually for properties valued above $25,000, making it one of the lowest tax burdens in Southeast Asia for real estate investors.
Vacancy periods typically account for 15% to 18% of potential rental income for condos, with villas and coastal properties experiencing higher vacancy rates of 20% to 25% due to seasonal demand fluctuations.
Additional costs include insurance (optional, around $100 yearly), utility connections, and periodic repairs or upgrades needed to maintain competitive rental rates in Cambodia's evolving market.
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What's the breakdown of short-term versus long-term rental yields, and which option tends to perform better?
Short-term vacation rentals in Cambodia's top tourism areas can achieve gross yields of 8% to 10%, particularly in Siem Reap, Kep, and coastal locations during peak season months.
However, short-term rentals involve significantly higher operating costs including cleaning fees, platform commissions, higher turnover expenses, and more intensive property management requirements.
Long-term rentals typically generate 6% to 8% gross yields but offer more predictable income streams with lower management overhead and reduced vacancy risk in established expat and business districts.
Net yield analysis generally favors long-term rentals because their lower operating costs and more consistent occupancy rates often result in superior returns despite lower gross rental rates.
The optimal strategy depends on location and investor involvement, with hands-on investors in tourist areas potentially benefiting from short-term rentals while passive investors typically achieving better results with long-term leasing.
Can you give me example rental prices for different property types in major cities?
| Location | 1BR Condo Monthly Rent | 2BR Condo Monthly Rent | 3BR Condo Monthly Rent | Villa Monthly Rent | Notes |
|---|---|---|---|---|---|
| Phnom Penh Central | $550 | $1,000 | $2,000 | $2,000 - $4,500 | Highest demand, expat area |
| Siem Reap | $600 | $1,100 | $2,200 | $2,500 - $5,000 | Tourism-driven pricing |
| Kep/Kampot | $600 | $1,100 | $2,200 | $2,500 - $5,000 | Coastal premium, seasonal |
| Chroy Changvar | $475 | $775 | $1,800 | $2,000+ | Developing area, lower costs |
| Russian Market Area | $525 | $950 | $1,900 | $2,200 - $4,000 | Established expat district |
These rental rates reflect furnished properties in good condition with standard amenities expected by expat and tourist tenants, including air conditioning, modern appliances, and reliable internet access.
Unfurnished properties typically rent for 20% to 30% less than furnished equivalents, though most foreign investors opt for furnished rentals to maximize income and attract premium tenants.
Who are the main renter profiles in Cambodia, and how do they affect demand?
Expatriate workers represent the most stable and lucrative tenant segment, typically seeking fully furnished, secure properties in central Phnom Penh areas like BKK1 and Russian Market with long-term lease commitments.
International NGO staff and development workers create consistent demand for mid-range to upscale housing with reliable utilities and proximity to international organizations and embassies.
Tourists and business travelers drive short-term rental demand in Siem Reap, coastal areas, and central Phnom Penh, willing to pay premium rates for fully serviced accommodations during peak seasons.
Local Cambodian professionals increasingly rent modern condominiums, though they typically seek lower-cost options and may not require the same amenity levels as international tenants.
University students create some demand for budget accommodations near educational institutions in Phnom Penh, though this segment typically offers lower rental rates and shorter lease terms.
What are the average vacancy rates across different areas and property types?
Condominiums in Phnom Penh currently experience approximately 15% vacancy rates as of September 2025, showing improvement from higher rates during the post-pandemic period.
Coastal and tourism-dependent properties face higher vacancy rates reaching 20% to 25% during off-season periods, though this is offset by premium rates during peak tourist months.
Villas and shophouses typically show vacancy rates between 18% and 25% due to their higher rental costs and more limited tenant pool compared to standard condominiums.
Properties in established expat neighborhoods like BKK1 and Russian Market maintain the lowest vacancy rates, often below 15%, due to consistent demand from international workers and organizations.
Oversupplied areas and luxury developments may experience vacancy rates above 25%, particularly for properties priced above market rates or lacking essential amenities expected by target tenants.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Cambodia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
How have rents and yields changed over the last five years, and how do they compare to just one year ago?
Rental yields in Cambodia have remained relatively stable over the past five years, consistently ranging between 7% and 8%, though there's been a slight compression as property prices have risen faster than rental rates since 2022.
Compared to September 2024, current rental rates have increased by 3% to 5% on average, with Phnom Penh and coastal areas showing the strongest recovery as occupancy rates improved following pandemic-related disruptions.
The five-year trend shows rental income growth has generally matched inflation, while property appreciation has provided additional returns through capital gains rather than yield enhancement.
Tourist areas experienced more volatile rental performance during 2020-2022 but have rebounded strongly in 2024-2025 as international travel resumed and expat populations stabilized in major cities.
Overall market fundamentals remain strong with urbanization, tourism recovery, and continued foreign investment supporting both rental demand and property values across Cambodia's primary markets.
What's the forecast for yields over the next 1, 5, and 10 years, and how does Cambodia compare to regional cities?
Short-term forecasts for 2026 predict slight yield compression with Phnom Penh expected to average 6.8% and tourist areas like Siem Reap and coastal regions maintaining 7.7% as supply increases and prices stabilize.
Medium-term projections for 2027-2030 suggest yields will remain attractive between 6.5% and 7.5%, supported by continued tourism growth, urbanization trends, and steady inflow of international organizations and businesses.
Long-term outlook through 2035 indicates yields may settle around 6% to 7% for central condominiums, with potential upside in secondary cities and emerging coastal towns as infrastructure development improves connectivity and attractiveness.
Cambodia's current yields of 6% to 8% compare favorably to Bangkok's central areas (5%), Ho Chi Minh City (5-7%), and Manila (5-8%), making it particularly attractive for yield-focused investors seeking higher income returns.
It's something we develop in our Cambodia property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Cambodia's rental market offers compelling opportunities for investors seeking both yield and capital appreciation in Southeast Asia's emerging economies.
Success requires careful property selection, understanding local tenant preferences, and maintaining realistic expectations about costs and vacancy rates in this developing market.
It's something we develop in our Cambodia property pack.
Sources
- Global Property Guide - Cambodia Rental Yields
- BambooRoutes - Cambodia Property Investment
- Cambodia Condo For Sale - Rental Yield Investment Potential
- Global Property Guide - Cambodia Price History
- Dabest Properties - Cambodia Condo Trends
- InvestAsian - Cities Highest Rental Yields
- InvestAsian - Invest Cambodia Property
- IPS Cambodia - Phnom Penh Condo Market Trends 2025