Real Estate Yield in Cambodia: Honest Net Returns Across 4 Property Types (2025)

TL;DR: Real net yield from Cambodia real estate for non-residents ranges from 3.5% to 9.6%, depending on the property. Budget apartments (from $72,000) deliver ~7.9% net, luxury units with a GRR guarantee ~6.8%, and a $350,000 villa just ~3.5%. Advertised "ROI 20–30%" figures ignore the 14% rental income tax, vacancy, and management costs.

Why Advertised ROI Numbers Don't Reflect What You Actually Earn

Developers across Cambodia routinely promote "ROI 15–30%" figures. These numbers exist — but they emerge from three scenarios that don't reflect real investment performance:

  • Yield calculated on the down payment, not the full purchase price (installment leverage effect)
  • Capital appreciation included in the return figure
  • Pre-expense, pre-tax calculation — vacancy, property management fees, and the 14% rental income tax are omitted

All calculations below use a consistent methodology: non-resident status, 14% rental income tax, 15% vacancy, 10% remote property management, TOIP at 0.1% of (price − $25,000), and a ~3% maintenance reserve. Capital gains tax at sale is currently 0% (deferred until 2027).

Time Square 5 — 1BR and 3BR: High Yield, Your Operational Risk

1BR, 60 sqm, $72,000

  • Market rent: $900/month → Gross: $10,800/year (15% gross yield)
  • Net yield: ~7.9% ($5,677/year after all deductions)
  • Purchase tax: ~$80 (TOIP exemption for properties under $70,000)

The low entry price and strong rental-to-price ratio make this the most cash-flow-efficient option in the comparison. Vacancy and management sit entirely with the investor.

3BR, 100 sqm, $120,000

  • Market rent: $1,800/month → Gross: $21,600/year (18% gross yield)
  • Net yield: ~9.6% on paper — realistic estimate is 7–8%
  • Purchase tax: ~$2,000

⚠️ The $1,800/month rent assumption for a 3-bedroom unit is optimistic. Larger apartments take longer to fill: real vacancy exceeds 15%. Build 7–8% net into your model.

Le Condé 2 with GRR: Lower Yield, Zero Management for 3 Years

1BR, 70 sqm, ~$140,000 | Guaranteed Rental Return 8% × 3 years

  • Developer GRR: $11,200/year guaranteed
  • Net yield after 14% tax and TOIP: ~6.8% ($9,520/year)
  • Purchase tax: ~$2,800
  • During the guarantee period: vacancy and management are the developer's problem

Le Condé 2 sits in the luxury segment in BKK1. The higher price per sqm ($2,000+ vs $1,200 for TS5) compresses yield even with a guarantee in place.

GRR is not a tool for higher income — it's a tool for lower risk. You trade roughly 1–2% net yield for predictability and passive income mode. After the 3-year guarantee, the property moves to market rent — with variable returns.

The $350,000 Villa: Not a Cash Flow Play — a Land Value Bet

  • Market rent: $2,000/month → Gross: $24,000/year (6.9% gross)
  • Net yield: ~3.5% ($12,400/year) — villa maintenance costs are higher (~8% of value)
  • Purchase tax (freehold): ~$14,000 (4% of price)

The land component generates no rental income but is priced into the asset, pulling yield down. 3.5% net is a weak cash flow return on a $350,000 investment.

A villa is a different instrument: a bet on land value appreciation plus a lifestyle asset. Over a 7–10 year horizon, comparing it to apartments on yield alone misses the point.

Side-by-Side Comparison: 4 Properties, One Methodology

Property Price Gross Yield Net Yield Purchase Tax Profile
TS5 1BR $72,000 15% ~7.9% ~$80 Cash flow, low entry
TS5 3BR $120,000 18% ~7–9.6%* ~$2,000 High potential, vacancy risk
Le Condé 2 (GRR) $140,000 8% ~6.8% guaranteed ~$2,800 Passive income, 3-year hands-off
Villa $350k $350,000 6.9% ~3.5% ~$14,000 Land appreciation, lifestyle

*Realistic range accounting for larger-unit vacancy: 7–8%.

Three Principles That Should Drive Your Property Decision

Price per sqm is the primary yield driver. TS5 at $1,200/sqm delivers 8–9% net. Le Condé at $2,000+/sqm delivers ~7% even with a guarantee. Luxury compresses yield — this is a market law, not an exception.

Income type defines strategy. Cash flow investment: TS5 1BR. Passive income without management headaches: Le Condé 2 during GRR. Long-term capital appreciation: villa with land.

Real net yields of 4–9% align with independent market assessments. Anything higher involves either leverage on installments or capital appreciation layered into the return.

FAQ

What is the realistic rental yield from Cambodia real estate for a non-resident in 2025? Net yield after the 14% rental income tax, vacancy, and management costs ranges from 3.5% to 9.6%. Budget apartments average 7–9%, luxury and villas deliver 3.5–7%. Independent market assessments consistently point to a 4–8% net yield corridor.

How does a GRR guarantee work and how reliable is it? A Guaranteed Rental Return (GRR) is a developer's commitment to pay a fixed percentage of the property's value over an agreed period (typically 2–5 years), regardless of actual occupancy. Reliability depends on the developer's financial stability. After the guarantee period ends, the property moves to market rental conditions.

What taxes does a non-resident pay when buying property in Cambodia? For new developments under $70,000, the transfer tax (TOIP) is minimal — roughly $80 due to the base deduction. At $120,000, approximately $2,000. A $350,000 villa under freehold title: 4% = $14,000. Leasehold structures carry a different fee framework.

Is a villa in Cambodia a good rental investment? As a cash-flow rental play — no. ~3.5% net yield is a weak return on a $350,000 asset. Villas make sense as long-term land appreciation bets or as owner-occupied properties with partial rental income.

As of 2025. CGT on sale = 0% until 2027; tax rates and market conditions may change — verify current figures before any transaction.

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