Authored by the expert who managed and guided the team behind the Cambodia Property Pack
Yes, the analysis of Phnom Penh's property market is included in our pack
Everything you need to know about rental yields in Phnom Penh is covered in this article, from gross and net returns to neighborhood breakdowns and landlord costs.
We constantly update this blog post to reflect the latest data and market conditions in Phnom Penh's rental market.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Phnom Penh.
Insights
- Phnom Penh's gross rental yields average around 6.3% in early 2026, but the citywide spread ranges from 4.5% to 8.0% depending on where and what you buy.
- Serviced apartments in Phnom Penh carry significant occupancy risk, with average occupancy rates hovering around 54%, meaning nearly half the year could see empty rooms.
- Smaller units like 1-bedroom condos in Phnom Penh typically yield around 6.6% gross, outperforming 2-bedroom units at roughly 5.2% because rent does not scale with size.
- The gap between gross and net yields in Phnom Penh is usually 1.5 to 2.0 percentage points, mainly eaten by rental income tax, vacancy, and management fees.
- Chroy Changvar stands out as a higher-yield district in Phnom Penh, often reaching 6.8% to 8.0% gross for investors who negotiate purchase prices well.
- Prime lifestyle zones like BKK1 and Tonle Bassac in Phnom Penh typically compress yields to 4.5% to 5.8% because purchase prices are significantly higher than rents justify.
- Techo International Airport, which opened in September 2025, is expected to boost rental demand in southern Phnom Penh corridors like Dangkao and Por Senchey.
- Phnom Penh landlords should budget 1.0 to 1.5 months of vacancy per year, which translates to roughly 8% to 12% of annual rental income set aside.
- Rental income tax in Phnom Penh is commonly around 10% of gross rent, which alone shaves about 0.6 percentage points off your yield on a typical property.
- Condo management fees in Phnom Penh typically run $1 to $2 per square meter per month, making them a material cost for smaller units under 50 square meters.
What are the rental yields in Phnom Penh as of 2026?
What's the average gross rental yield in Phnom Penh as of 2026?
As of early 2026, the average gross rental yield in Phnom Penh across all residential property types sits around 6.0% to 6.7%, with a center point of approximately 6.3%.
This range covers most typical investments in Phnom Penh, from condos and apartments to borey townhouses and villas, though individual deals can fall above or below depending on purchase price and rental demand.
Compared to many Southeast Asian capitals, Phnom Penh's gross yields remain relatively attractive, as cities like Bangkok or Kuala Lumpur often see averages closer to 4% to 5% for similar residential properties.
The single most important factor influencing Phnom Penh gross rental yields right now is the balance between heavy condo supply in certain districts and steady expat and local professional demand in established renter hubs.
What's the average net rental yield in Phnom Penh as of 2026?
As of early 2026, the average net rental yield in Phnom Penh across all residential property types falls around 4.3% to 5.0%, with a center point of approximately 4.6%.
The typical difference between gross and net yields in Phnom Penh is about 1.5 to 2.0 percentage points, which reflects the real costs landlords face after collecting rent.
In Phnom Penh specifically, rental income tax at roughly 10% of gross rent is one of the biggest recurring expenses that reduces your gross yield to net, often shaving around 0.6 percentage points alone.
Most standard investment properties in Phnom Penh land within the 4.3% to 5.0% net range because vacancy buffers, property management fees, maintenance, and building fees all add up predictably across different property types.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Phnom Penh.
We made this infographic to show you how property prices in Cambodia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What yield is considered "good" in Phnom Penh in 2026?
In Phnom Penh in 2026, a gross rental yield of 7% or higher is generally considered "good" by local investors, as it means you are beating the city's typical range and likely bought a practical unit at a fair price.
The threshold that separates average-performing properties from high-performing ones in Phnom Penh is around that 7% gross mark, while anything above 5% net is considered strong because it means vacancy is controlled and costs are managed tightly.
How much do yields vary by neighborhood in Phnom Penh as of 2026?
As of early 2026, gross rental yields in Phnom Penh can vary from about 4.5% in premium central districts to around 8.0% in outer or transitional areas, creating a spread of roughly 3.5 percentage points across the city.
Higher-yield neighborhoods in Phnom Penh tend to be practical, price-sensitive areas with strong local demand, such as Chroy Changvar, Sen Sok, Mean Chey, and parts of Por Senchey where purchase prices remain negotiable.
Lower-yield neighborhoods are typically the prime lifestyle zones where expats and wealthy locals pay premium prices, including BKK1, Daun Penh's Riverside area, and core Tonle Bassac in Chamkarmon district.
The main reason yields vary so much across Phnom Penh neighborhoods is that purchase prices in prestige areas climb faster than rents can follow, while practical outer districts offer better rent-to-price ratios for investors.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Phnom Penh.
How much do yields vary by property type in Phnom Penh as of 2026?
As of early 2026, gross rental yields in Phnom Penh range from about 4.5% for premium villas up to around 7.5% for well-priced borey townhouses or smaller condos, depending on the property type you choose.
Smaller condos and borey townhouses currently deliver the highest average gross rental yields in Phnom Penh because they are priced for practical budgets and attract a steady pool of local professionals and expat renters.
Standalone villas and large luxury units currently deliver the lowest average gross rental yields in Phnom Penh because their high purchase prices rarely translate into proportionally higher rents.
The key reason yields differ between property types in Phnom Penh is that rent does not scale linearly with size or luxury level, so smaller, practical units tend to have better rent-to-price ratios than large premium homes.
By the way, you might want to read the following:
- What rental yields can you expect for an apartment in Phnom Penh?
- What rental yields can you expect for a condo in Phnom Penh?
What's the typical vacancy rate in Phnom Penh as of 2026?
As of early 2026, the typical residential vacancy rate in Phnom Penh for long-term leases is around 10% to 15%, which means landlords should budget for roughly 1.0 to 1.5 empty months per year.
Vacancy rates across Phnom Penh neighborhoods can range from under 10% in high-demand family areas like Toul Kork to over 40% for serviced apartments in oversupplied districts.
The main factor driving vacancy rates in Phnom Penh right now is the heavy condo supply in certain submarkets, which creates competition for tenants and puts pressure on landlords to offer concessions or accept longer gaps between leases.
Compared to regional averages, Phnom Penh's vacancy for standard long-term rentals is moderate, though the serviced apartment segment shows much higher vacancy at around 46% due to its flexible-lease nature and supply glut.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Phnom Penh.
What's the rent-to-price ratio in Phnom Penh as of 2026?
As of early 2026, the average rent-to-price ratio in Phnom Penh is approximately 0.52% per month, which translates to an annual gross yield of around 6.3% and a price-to-rent multiple of about 16 times annual rent.
A rent-to-price ratio above 0.58% monthly (or 7% annually) is generally considered favorable for buy-to-let investors in Phnom Penh, and this ratio is simply the gross rental yield expressed in a different way.
Compared to other Southeast Asian capitals like Bangkok or Ho Chi Minh City, Phnom Penh's rent-to-price ratio remains relatively attractive, offering better income potential per dollar invested for residential properties.
We have made this infographic to give you a quick and clear snapshot of the property market in Cambodia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which neighborhoods and micro-areas in Phnom Penh give the best yields as of 2026?
Where are the highest-yield areas in Phnom Penh as of 2026?
As of early 2026, the highest-yield areas in Phnom Penh include Chroy Changvar, Sen Sok, and Mean Chey, where investors can find properties delivering strong returns when purchased at the right price.
In these top-performing Phnom Penh areas like Chroy Changvar, Sen Sok, and parts of Mean Chey, gross rental yields typically range from 6.8% to 8.0% for well-negotiated deals.
The main characteristic these high-yield Phnom Penh areas share is that purchase prices remain negotiable while rental demand from local families and professionals stays steady, creating favorable rent-to-price ratios.
You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in Phnom Penh.
Where are the lowest-yield areas in Phnom Penh as of 2026?
As of early 2026, the lowest-yield areas in Phnom Penh are the prime lifestyle districts including BKK1 (Boeung Keng Kang 1), Daun Penh's Riverside area, and core Tonle Bassac in Chamkarmon.
In these premium Phnom Penh neighborhoods, gross rental yields typically range from 4.5% to 5.8%, which is noticeably below the citywide average.
The main reason yields are compressed in these Phnom Penh areas is that buyers pay a significant premium for convenience, lifestyle, and prestige, but rents do not rise proportionally to match those elevated purchase prices.
Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Phnom Penh.
Which areas have the lowest vacancy in Phnom Penh as of 2026?
As of early 2026, the neighborhoods with the lowest residential vacancy rates in Phnom Penh include Toul Kork, BKK2/BKK3, and the Russian Market (Toul Tom Poung) area.
In these low-vacancy Phnom Penh areas, landlords typically experience vacancy rates below 10%, often filling units within a few weeks of listing.
The main demand driver keeping vacancy low in Toul Kork, BKK2/BKK3, and Russian Market is the diversified tenant pool combining expats, local professionals, families near schools, and office workers who value convenient commutes.
The trade-off investors face when targeting these low-vacancy Phnom Penh neighborhoods is that purchase prices tend to be higher, which compresses gross yields even as occupancy stays strong.
Which areas have the most renter demand in Phnom Penh right now?
The neighborhoods currently experiencing the strongest renter demand in Phnom Penh are BKK1/BKK2/BKK3, Toul Kork, and the Russian Market area in Toul Tom Poung.
The renter profile driving most demand in these Phnom Penh areas includes expats working in central offices, young local professionals, and families seeking access to international schools and quality amenities.
Rental listings in high-demand Phnom Penh neighborhoods like BKK and Toul Kork typically get filled within two to four weeks when priced competitively, compared to several months in oversupplied outer districts.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Phnom Penh.
Which upcoming projects could boost rents and rental yields in Phnom Penh as of 2026?
As of early 2026, the top three infrastructure projects expected to boost rents in Phnom Penh are Techo International Airport (opened September 2025), the Phnom Penh-Bavet Expressway, and the Cambodia-Korea Friendship Bridge connecting Daun Penh to Chroy Changvar.
The Phnom Penh neighborhoods most likely to benefit from these projects include southern corridors like Dangkao and Por Senchey near the new airport, plus Chroy Changvar and Daun Penh along the new bridge route.
Investors in well-positioned Phnom Penh properties near these infrastructure projects might realistically expect rent increases of 5% to 15% over the next two to three years as connectivity improves and job nodes develop.
You'll find our latest property market analysis about Phnom Penh here.
Get fresh and reliable information about the market in Phnom Penh
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
What property type should I buy for renting in Phnom Penh as of 2026?
Between studios and larger units in Phnom Penh, which performs best in 2026?
As of early 2026, smaller units like studios and 1-bedroom apartments tend to outperform larger units on rental yield in Phnom Penh, while 2-bedroom units often win on occupancy stability and tenant retention.
In Phnom Penh, 1-bedroom condos typically yield around 6.6% gross (roughly $550/month rent on a $100,000 unit), while 2-bedroom units yield closer to 5.2% gross because rent does not increase proportionally with size.
The main factor explaining why smaller units outperform on yield in Phnom Penh is that rent per square meter is highest for compact units, as tenants pay for location and convenience rather than extra space.
However, 2-bedroom units can be the better investment choice in Phnom Penh when targeting family tenants in neighborhoods like Toul Kork or Sen Sok, where longer lease terms and lower turnover offset the yield difference.
What property types are in most demand in Phnom Penh as of 2026?
As of early 2026, modern 1 to 2 bedroom condos and apartments in central renter zones are the most in-demand property type in Phnom Penh for rental purposes.
The top three property types ranked by tenant demand in Phnom Penh are modern condos/apartments in central districts, borey townhouses in family-oriented areas, and well-managed serviced apartments for corporate tenants.
The primary trend driving this demand pattern in Phnom Penh is the growing population of young local professionals and expats who prioritize convenience, modern amenities, and reasonable commutes over large living spaces.
One property type currently underperforming in demand and likely to remain so in Phnom Penh is large standalone villas in non-central locations, which face a limited tenant pool and high maintenance expectations.
What unit size has the best yield per m² in Phnom Penh as of 2026?
As of early 2026, units between 35 and 55 square meters (typically studios and 1-bedroom apartments) deliver the best gross rental yield per square meter in Phnom Penh.
For this optimal unit size in Phnom Penh, typical gross rental yields run around 6.5% to 7.0%, which translates to roughly $13 to $16 per square meter per month in rent (about 53,000 to 65,000 Cambodian riel, or 12 to 15 euros).
The main reason larger units have lower yield per square meter in Phnom Penh is that tenants are not willing to pay proportionally more for extra space, so the rent premium for a bigger unit does not cover the additional purchase cost.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Phnom Penh.
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 costs cut my net yield in Phnom Penh as of 2026?
What are typical property taxes and recurring local fees in Phnom Penh as of 2026?
As of early 2026, the main recurring tax for Phnom Penh rental property is rental income tax at around 10% of gross rent, which on a $550/month apartment works out to about $660 per year (roughly 2.7 million Cambodian riel or 610 euros).
Other recurring fees Phnom Penh landlords must budget include annual property tax (TOIP), which is relatively small for most units, plus condo building fees typically running $1 to $2 per square meter per month (about 4,000 to 8,000 riel or 0.90 to 1.80 euros per square meter).
In total, these taxes and fees typically represent around 12% to 18% of gross rental income in Phnom Penh, depending on unit size and whether you own a condo with significant building fees.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Phnom Penh.
What insurance, maintenance, and annual repair costs should landlords budget in Phnom Penh right now?
Annual landlord insurance in Phnom Penh typically costs around $150 to $300 per year for a standard condo (roughly 600,000 to 1.2 million Cambodian riel or 140 to 275 euros), though many landlords skip this cost entirely.
The recommended annual maintenance and repair budget in Phnom Penh is about 0.5% to 1.0% of property value, or roughly 8% to 12% of annual rental income, with older buildings and landed homes requiring the higher end.
The repair expense that most commonly catches Phnom Penh landlords off guard is air conditioning replacement or major plumbing work, which can cost $300 to $800 (1.2 to 3.2 million riel or 275 to 740 euros) and often hits without warning.
In total, Phnom Penh landlords should realistically budget $500 to $1,200 per year (2 to 5 million riel or 460 to 1,100 euros) for insurance, maintenance, and repairs combined on a typical rental condo.
Which utilities do landlords typically pay, and what do they cost in Phnom Penh right now?
In Phnom Penh long-term rentals, tenants typically pay for electricity, water, and internet directly, while landlords usually cover condo common-area fees and sometimes water in serviced-style arrangements.
When landlords do cover utilities in Phnom Penh (mainly just common-area charges), the monthly cost is usually $30 to $80 (120,000 to 325,000 riel or 28 to 74 euros), with electricity running around $0.15 per kWh and water charged in tiered blocks starting at about 400 riel per cubic meter.
What does full-service property management cost, including leasing, in Phnom Penh as of 2026?
As of early 2026, full-service property management in Phnom Penh typically costs 5% to 10% of monthly rent, which on a $550/month unit works out to about $28 to $55 per month (115,000 to 225,000 riel or 26 to 51 euros).
On top of ongoing management, Phnom Penh property managers or agents often charge a leasing or tenant-placement fee equivalent to about half to one full month's rent, adding roughly $275 to $550 (1.1 to 2.2 million riel or 255 to 510 euros) each time a new tenant is placed.
What's a realistic vacancy buffer in Phnom Penh as of 2026?
As of early 2026, Phnom Penh landlords should set aside about 8% to 12% of annual rental income as a vacancy buffer to account for tenant turnover and gaps between leases.
In practical terms, this vacancy buffer translates to roughly 4 to 6 weeks of empty time per year for standard Phnom Penh long-term rentals, though properties in oversupplied districts may experience longer gaps.
Buying real estate in Phnom Penh can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Phnom Penh, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Global Property Guide | It's a long-running international housing data publisher that shows its formula and update dates. | We used its Q1 2026 Phnom Penh gross yield benchmarks as the anchor for citywide yields. We then adjusted to all property types using Phnom Penh's common housing stock and typical cost structure. |
| Knight Frank Cambodia | Knight Frank is a global real estate consultancy with a formal research function and clear market segmentation. | We used it to ground Phnom Penh submarket geography and serviced apartment rents and occupancy. We also used its notes on supply pipeline to discuss where rents can be pressured or boosted. |
| National Bank of Cambodia | It's the central bank, so it's the reference source for macro and financial-system context. | We used it to frame early 2026 conditions including credit and stability. We used it as a cross-check so our yield assumptions match the macro reality rather than marketing claims. |
| General Department of Taxation | This is the tax authority that administers the main recurring property and rental taxes in Cambodia. | We used it as the official source for what taxes exist and who enforces them. We then triangulated specific rates using reputable local explainers. |
| Realestate.com.kh (Tax Guide) | It's a major local property platform and its tax guides are practical and consistent with Cambodia's approach. | We used it to estimate the rental income tax hit on gross rent. We then stress-tested the net yield with conservative assumptions so the estimate remains robust. |
| Realestate.com.kh (Cost Breakdown) | It's an established local platform that publishes concrete fee ranges landlords actually see in Phnom Penh. | We used it for building management fee and property management fee ranges that reduce net yield. We then converted those fee ranges into percentage yield drag. |
| KNC & Associates | A law firm summary is a careful, checkable interpretation of a specific government notification. | We used it to pin down the time window and thresholds for stamp duty relief affecting transaction costs. We used it only as supporting context for buyer demand dynamics. |
| Associated Press | AP is a global wire service with strong editorial standards and dated event reporting. | We used it to support early 2026 demand drivers tied to Techo International Airport's September 2025 opening. We then mapped likely rent uplift zones to southern Phnom Penh districts. |
| Ministry of Information / AKP | It's an official government channel relaying Ministry of Tourism figures on visitor arrivals. | We used it to validate that tourism and visitor flows were recovering, which matters for rental demand. We used it as directional support rather than a yield calculator. |
| Ministry of Planning (PIP) | It's a government project record, so it's more reliable than second-hand project blogs. | We used it to confirm that the Phnom Penh-Bavet Expressway project exists and what it connects. We then translated that into likely micro-areas where rental demand can strengthen. |
| Open Development Cambodia | It republishes structured public-service tariff data with references, making it easy to verify and compute from. | We used it to estimate typical water cost bands for Phnom Penh rentals. We then translated utilities into practical landlord budgeting guidance. |
| GlobalPetrolPrices.com | It's a widely used international price aggregator with dated snapshots and a consistent method across countries. | We used it as a sanity-check for electricity cost levels when discussing landlord and tenant utility splits. We kept the estimate conservative because tariffs vary by usage block. |
| Phnom Penh Post | It's one of Cambodia's established English-language newspapers with local reporting on infrastructure projects. | We used it to verify details about the Cambodia-Korea Friendship Bridge connecting Daun Penh to Chroy Changvar. We then mapped the likely beneficiary neighborhoods for rental demand. |
Get the full checklist for your due diligence in Phnom Penh
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
Related blog posts