Authored by the expert who managed and guided the team behind the Cambodia Property Pack
Yes, the analysis of Sihanoukville's property market is included in our pack
Sihanoukville's rental yields remain among the highest in Southeast Asia's coastal markets.
As of September 2025, beachfront condos in prime areas like Otres Beach and Sokha Beach deliver gross rental yields between 8-10%, while net yields typically range from 2-4% after accounting for taxes, management fees, and vacancy periods. The city's affordable property prices, combined with growing tourism demand and improved infrastructure, make it an attractive investment destination for both local and foreign buyers.
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.
Sihanoukville offers gross rental yields of 8-12% for well-located properties, with beachfront condos in tourist zones achieving the highest returns.
Net yields typically settle between 2-4% after ongoing costs, making affordable condos near beaches the smartest investment choice for maximizing returns.
| Property Type | Gross Yield | Net Yield | Average Monthly Rent | Best Areas |
|---|---|---|---|---|
| 1-Bedroom Beachfront Condo | 8-10% | 2-4% | $400-$800 | Otres, Sokha Beach |
| 2-Bedroom Apartment | 8-10% | 2-4% | $700-$1,000 | Serendipity, Sokha |
| Luxury Beachfront Villa | 7-9% | 1-3% | $1,600-$2,000 | Premium coastal areas |
| Central/Inland Condo | 6-8% | 1-3% | $300-$800 | City center |
| Budget Apartment | 6-8% | 1-2% | $200-$400 | Inland areas |
What are the current average rental yields in Sihanoukville by property type?
Sihanoukville's rental market delivers gross yields between 8-12% for well-positioned properties as of September 2025.
Condos and apartments typically achieve 8-10% gross returns, with the highest yields concentrated in beachfront locations. Budget condos starting around $40,000 can deliver up to 10% gross yields, making them particularly attractive for investors seeking high returns. Luxury beachfront villas command premium prices but often yield slightly less due to higher vacancy rates and seasonal demand fluctuations.
The strongest performing properties are 1-bedroom and 2-bedroom units in tourist-focused areas like Otres Beach, Sokha Beach, and Serendipity Beach. These areas consistently attract both short-term vacation rentals and longer-term expat tenants, providing more stable occupancy rates. Central and inland properties typically generate lower yields of 6-8% due to reduced tourist demand and longer vacancy periods.
It's something we develop in our Cambodia property pack.
How do rental yields vary between different neighborhoods in Sihanoukville?
Prime coastal neighborhoods significantly outperform central and inland areas in terms of rental yields.
| Neighborhood | Gross Rental Yield | Net Rental Yield | Key Characteristics |
|---|---|---|---|
| Otres Beach | 7.5-8.5% | 2-4% | Popular with backpackers and families |
| Sokha Beach | 8-10% | 2-4% | Premium resort area with high demand |
| Serendipity Beach | 8-10% | 2-4% | Main tourist hub with restaurants and bars |
| City Center | 6-8% | 1-3% | Business district with mixed demand |
| Inland Areas | 6-8% | 1-3% | Lower property prices but limited tourist appeal |
| Casino District | 6-7% | 1-2% | Business travelers but higher vacancy risk |
What rental yields can you expect based on property size and surface area?
Smaller units typically deliver higher rental yields per square meter compared to larger properties.
One-bedroom units around 40-50 square meters generate the strongest yields, with purchase prices averaging $145,000-$155,000 and monthly rents of $400-$800. These properties appeal to couples, solo travelers, and business visitors, creating consistent demand throughout the year. The compact size also means lower utility costs and maintenance expenses, improving net returns.
Two-bedroom condos and apartments spanning 60-80 square meters offer excellent balance between yield and rental demand. With typical rents of $700-$1,000 per month, these properties attract small families, groups of friends, and longer-stay tourists. Purchase prices vary significantly based on location, ranging from $150,000 for inland properties to $300,000 for premium beachfront units.
Larger three-bedroom properties and villas often deliver lower yields despite higher absolute rental income. These properties face niche demand, longer vacancy periods, and higher operational costs. Price per square meter ranges from $1,700 for budget developments to $4,500 for prime beachfront locations, significantly impacting overall returns.
How do purchase prices, fees, and taxes impact your net rental yields?
Transaction costs and ongoing taxes significantly reduce gross yields to net returns of 2-4% for most properties.
Property prices in Sihanoukville have stabilized with a median price of $152,600 as of September 2025. Budget properties start around $1,700 per square meter, while prime coastal locations command up to $4,500 per square meter. These relatively affordable entry points compared to other Southeast Asian beach destinations help maintain attractive gross yields.
Transaction costs include stamp duty at 4%, agent fees ranging from 1-3%, legal costs, and registration fees. From September 2025, capital gains tax applies to property resales, adding another cost consideration for investors planning shorter holding periods. Foreign buyers face additional restrictions, with condos being the most accessible option while land purchases require complex legal structures.
Ongoing tax obligations include rental income tax, which directly impacts net yields. Property taxes remain relatively low compared to Western markets, but investors must factor in these costs when calculating realistic returns. Legal compliance costs for foreign ownership structures also reduce net yields, particularly for land-based investments.
What ongoing costs and mortgage considerations affect overall returns?
Ongoing expenses typically reduce gross yields by 4-6 percentage points, bringing net returns to 2-4% for most properties.
Management fees average $1-2 per square meter per month, while maintenance costs vary significantly based on property age and quality. Insurance, utilities, and cleaning services for short-term rentals add substantial ongoing expenses. Airbnb and booking platform fees typically range from 3-5%, further impacting net returns for vacation rental properties.
Property tax obligations remain relatively modest but must be factored into yield calculations. Professional property management becomes essential for foreign investors, adding 8-12% of rental income to operational costs. Regular maintenance and occasional refurbishment expenses can significantly impact annual returns, particularly for older buildings.
Investment mortgages typically carry interest rates 0.5-0.75% higher than owner-occupier loans, substantially reducing net cash flows. Many foreign investors opt for cash purchases due to limited local mortgage options, though resident investors can access better financing terms. Leveraged investments require careful analysis of debt service coverage to ensure positive cash flow.
What are current rental prices for different property types in Sihanoukville?
Rental prices in Sihanoukville span a wide range depending on property type and location as of September 2025.
One-bedroom condos command monthly rents between $400-$800, with beachfront locations achieving premium rates. The median rent for all Sihanoukville homes currently sits at $1,000 per month, reflecting the mix of property types and locations across the market. Budget apartments start as low as $200 per month for basic inland units, appealing to long-term local residents and budget-conscious expats.
Two-bedroom apartments and condos typically rent for $700-$1,000 monthly, representing the sweet spot for many investors. These properties attract families, small groups, and longer-stay tourists willing to pay premium rates for additional space and amenities. Location significantly impacts pricing, with beachfront properties commanding 30-50% premiums over similar inland units.
Luxury beachfront villas represent the top tier of the rental market, achieving $1,600-$2,000 per month. However, these properties face more volatile demand, longer vacancy periods, and higher operational costs. Seasonal fluctuations are most pronounced in this segment, with peak season rates potentially doubling low season pricing.
Who are the main renter profiles and what do they prefer?
Couples and solo travelers dominate Sihanoukville's rental market, comprising 50% of all tenants.
This demographic strongly favors one-bedroom units and studio apartments, particularly in beachfront locations with easy access to restaurants, bars, and water activities. They typically prefer short-term arrangements through Airbnb and similar platforms, creating opportunities for higher daily rates but also increased management complexity and vacancy risk.
Small families and groups represent the second-largest segment, seeking two-bedroom and larger accommodations. These renters often stay for longer periods, ranging from weekly vacation rentals to monthly extended stays. They prioritize properties with kitchen facilities, living areas, and proximity to family-friendly beaches and activities.
Business visitors, including casino workers and development project staff, create steady demand for central and mid-market properties. Chinese expats, retirees, and long-term tourists also contribute to rental demand, though their preferences vary significantly. Each segment has distinct timing patterns, with leisure travelers concentrated in dry season months while business tenants provide more consistent year-round demand.
It's something we develop in our Cambodia property pack.
What are typical vacancy rates across different property types and areas?
Average occupancy rates for short-term rentals in Sihanoukville currently sit at 26%, with significant variation by property quality and location.
Peak season occupancy reaches 33-42% for well-managed properties in prime locations, while off-season rates can drop substantially. Entry-level properties struggle with only 9% occupancy rates, highlighting the importance of property selection and management quality. Top-performing properties achieve 64% occupancy, demonstrating the potential for well-positioned investments.
Beachfront properties in Otres, Sokha, and Serendipity areas maintain higher occupancy rates throughout the year compared to inland locations. Luxury properties face more pronounced seasonality, with longer vacancy periods during low season and weather-dependent demand fluctuations. Unfinished developments and oversupplied buildings experience significantly higher vacancy rates.
Long-term rental properties typically achieve better occupancy rates but lower daily rates. Business district properties benefit from more consistent demand but face competition from hotel accommodations. Properties targeting local residents and long-term expats generally maintain occupancy rates above 80% when priced competitively.
Don't lose money on your property in Sihanoukville
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
How do short-term and long-term rental yields compare currently?
Short-term rentals through Airbnb and similar platforms can achieve gross yields up to 12% annually during peak performance periods.
However, short-term rentals face significantly higher volatility and operational complexity. Seasonal demand fluctuations mean properties might achieve 60-80% occupancy during peak months but drop to 10-20% during low season. Management costs are substantially higher, including cleaning services, platform fees, guest communication, and frequent maintenance from higher turnover rates.
Long-term leases typically generate lower gross yields of 6-8% but provide much more predictable income streams. These arrangements reduce operational costs, eliminate platform fees, and minimize vacancy risks. Long-term tenants also tend to treat properties with more care, reducing maintenance expenses and wear-and-tear costs.
The choice between strategies often depends on investor involvement and risk tolerance. Local investors with time for hands-on management might prefer short-term rentals for higher potential returns, while foreign investors often favor long-term leases for simplicity and predictability. Mixed strategies, using long-term leases during low season and short-term rentals during peak periods, are becoming increasingly popular.
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.
What are the smartest property investment choices in Sihanoukville today?
Affordable condos near beaches represent the optimal investment strategy for most buyers in Sihanoukville's current market.
Properties in Otres Beach, Sokha Beach, and Serendipity Beach areas consistently deliver the strongest combination of rental yields, capital appreciation potential, and legal accessibility for foreign investors. One and two-bedroom units priced between $100,000-$200,000 offer the best balance of affordability and return potential, avoiding both the oversupplied luxury segment and the low-yield budget market.
Investors should prioritize completed developments with proper legal documentation over pre-construction projects. The market has seen several unfinished developments, making due diligence crucial for avoiding financial losses. Properties with hotel licenses or tourist accommodation permits provide additional rental flexibility and potentially higher returns.
Avoiding oversupplied inland developments and luxury properties with limited rental demand helps minimize vacancy risks. Buildings with established management companies and proven rental track records offer more predictable returns than properties requiring individual management setup. Foreign investors should focus exclusively on condos rather than land-based investments due to ownership restrictions.
How have rental yields and rents changed over the past five years and one year?
Rental yields have remained attractive at 8-10% since 2020, despite periods of oversupply and market volatility.
Five years ago, Sihanoukville experienced inflated property prices driven by Chinese investment speculation, resulting in tighter yields and market oversupply. The subsequent price corrections of 30-40% below pre-COVID peaks have actually improved yield conditions for current buyers, creating opportunities for higher returns on lower entry prices.
Tourism recovery drove rental demand up 22.9% in 2024 compared to the previous year, improving occupancy rates and supporting rent growth. Properties that survived the market downturn now benefit from reduced competition and stronger fundamentals. The elimination of speculative buying has led to more sustainable market conditions focused on actual rental demand rather than capital appreciation expectations.
One year ago, yields remained stable as the market consolidated around realistic pricing levels. Current rental rates reflect genuine demand from tourists, expats, and business visitors rather than artificial inflation from excessive speculation. This foundation provides more confidence for sustainable yield projections going forward.
It's something we develop in our Cambodia property pack.
What are the forecasts for rental yields over the next one, five, and ten years?
Rental yields are expected to remain high at 8-12% through 2026-2030 as tourism continues recovering and infrastructure development supports demand growth.
Short-term forecasts for 2026 suggest flat to slight increases in yields, with continued sectoral divergence between prime coastal areas and inland properties. Infrastructure completion, including improved port facilities and highway connections, should support stronger long-term demand for well-positioned properties. Tourism growth projections indicate sustained rental demand, particularly for short-term vacation accommodations.
Five to ten-year forecasts anticipate stronger capital appreciation alongside maintained rental yields as oversupply is absorbed and market fundamentals strengthen. Major infrastructure projects, including the new international airport and deep-water port expansion, are expected to increase Sihanoukville's connectivity and tourism capacity. These developments particularly benefit properties in Otres, Sokha, and Serendipity areas due to their proximity to main tourist attractions.
Regional comparison shows Sihanoukville yields remaining competitive with Siem Reap's 7-10% returns and significantly higher than most Vietnamese and Thai coastal cities. Cambodia's continued economic growth, political stability, and tourism development support optimistic long-term projections for the real estate market. However, investors should monitor regulatory changes, including tax policy and foreign ownership rules, which could impact future returns.
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.
Sihanoukville continues to offer some of Southeast Asia's most attractive rental yields for coastal property investments in 2025.
Smart investors focus on affordable beachfront condos in proven tourist areas while carefully managing ongoing costs and vacancy risks to maximize net returns.
Sources
- Sihanoukville Price Forecasts - BambooRoutes
- Sihanoukville Property Market - BambooRoutes
- Dabest Properties Sihanoukville Update
- Cambodia Property Bubble Analysis - BambooRoutes
- Sihanoukville Real Estate Market - BambooRoutes
- Cambodia Capital Gains Tax - IPS Cambodia
- Cambodia Real Estate Guides
- Sihanoukville Airbnb Market Report - AirROI
- Cambodia Rental Yields - Global Property Guide
- Cambodia Property Rentals