Siem Reap vs Phnom Penh: 5 Reasons This Market Wins for Investors in 2026

In 2024, the new Siem Reap-Angkor International Airport (SAI) welcomed its first passengers. Within twelve months, tourist arrivals to the province climbed by more than 30%. Condominium prices within 3 km of the city centre rose 12-18% year-on-year. For an international investor seeking an emerging market with an entry price below $65,000, Siem Reap is one of the most compelling addresses in Southeast Asia right now.

Siem Reap is no longer simply the gateway to Angkor Wat. The city is undergoing accelerated urbanisation driven by upgraded aviation infrastructure, Chinese and Korean development capital, and a growing base of digital nomads and long-stay expats. In 2026, gross rental yields of 8-11% on short-term rentals are achievable at price points three to four times lower than comparable assets in Thailand.

Quick answer

• Entry price: a studio of 28-35 sqm in a new condominium costs $45,000-$65,000
• Gross rental yield: 8-11% per year on short-term rental (Airbnb/Booking.com), 6-7% on long-term contracts
• Transaction currency: USD - Cambodia is one of the most dollarised economies in the world, eliminating local currency risk
• Foreign ownership: full freehold title (hard title) is available to foreigners for units on the first floor and above, up to a 70% foreign ownership cap per building
• SAI airport capacity: 7 million passengers per year, with direct routes to Kuala Lumpur, Bangkok, Seoul, and Shanghai
• Key risks: shallow secondary market, limited supply of Grade A developers, no direct flights from Europe or North America

Options and scenarios

Option 1: Short-term rental condominium in the Old Market District

The Old Market area (Psar Chas) and the streets surrounding Pub Street remain the epicentre of tourist activity. A 30-sqm studio in a new project with a pool and front-desk service is priced at $55,000-$65,000 in this zone.

At an average nightly rate of $45 and an annual occupancy of 65% (dry season pushes occupancy to 85%, the wet season pulls it down to roughly 40%), gross annual revenue works out as follows:

$45 x 365 days x 0.65 = $10,676 gross per year

After deducting property management fees (20%), community charges (approximately $600 per year), and minor repairs ($300 per year), net income before tax is approximately $7,640. At a purchase price of $60,000, that represents a pre-tax net yield of 12.7%. Cambodia levies a 14% withholding tax on rental income, reducing the effective net yield to approximately 10.9%.

For comparison: a comparable studio on Koh Samui in Thailand is priced at $120,000-$150,000 and typically delivers a net yield of 5-6%.

Option 2: Leasehold boutique hotel in Sala Kamroeuk

Sala Kamroeuk, the district immediately north of the city centre, has seen a wave of small boutique hotels (10-20 rooms) open in recent years. Foreigners cannot hold freehold title to land in Cambodia, but a 50-year leasehold with a renewal option is legally available. A leasehold on a 400-sqm plot costs $30,000-$50,000 as a one-time payment plus $2,000-$3,000 per year in ground rent. Construction of a 15-room property runs $250,000-$350,000.

Total capital outlay: approximately $330,000-$400,000. At an average room rate of $55 and 60% annual occupancy, gross revenue reaches around $180,000. After operating costs - staff, utilities, marketing - at roughly 55% of revenue, EBITDA sits at approximately $80,000. That translates to a gross return of 20-24% per year, but requires active management or a qualified local general manager.

Option 3: Cambodian company structure for land acquisition

An international investor may incorporate a Cambodian limited liability company in which the foreign shareholder holds up to 49% and a Cambodian national holds 51%. The company can acquire land with full freehold title. This structure requires a trusted local partner and experienced legal counsel. Incorporation costs: $3,000-$5,000. Annual maintenance (accounting, licences): $1,500-$2,500 per year.

This option opens access to development plots, peri-urban land, and commercial parcels - but carries significant corporate risk. If the Cambodian majority shareholder acts against the investor's interests, enforcement through Cambodian courts is uncertain. Side agreements and notarised powers of attorney provide partial protection but are not a substitute for a genuinely trusted partner.

Comparison table

Parameter	Old Market Condominium	Sala Kamroeuk Boutique Hotel (Leasehold)	Cambodian Company - Land Purchase
Entry price (USD)	$45,000 - $65,000	$330,000 - $400,000	from $80,000 (land + company)
Ownership structure	Hard title (1st floor and above)	50-year leasehold	Freehold via company
Gross yield	8 - 11%	18 - 24%	depends on project
Secondary market liquidity	Moderate	Low	Low
Risk level	Moderate	High	High
Management style	Passive (operator managed)	Active	Active
Minimum investment horizon	3 - 5 years	7 - 10 years	5 - 10 years
Tax on rental income	14% withholding	14% + patent tax	20% corporate income tax

Risks and mistakes

Thin secondary market. Siem Reap is not Bangkok or Kuala Lumpur. Selling a condominium unit can take 6-18 months, and a realistic exit strategy requires either patience or acceptance of a 10-15% price discount. Investors should treat this as a medium-term, yield-driven holding rather than a short-term flip.

Developer quality varies widely. Reputable firms from Phnom Penh and Singapore operate alongside local developers with no track record of completed projects. Before committing a deposit, verify: the construction permit, any bank guarantee or insurance covering pre-sales, and the developer's portfolio of delivered buildings. Industry estimates suggest that roughly 20% of projects announced in Cambodia between 2019 and 2023 were never completed.

Hotel supply risk. The boutique hotel boom of 2017-2019 created a temporary oversupply in Siem Reap. The market is rebalancing in 2026, partly due to the new airport, but any hotel investor should conduct a thorough competitive analysis within a 500-metre radius of the planned site before committing capital.

Majority shareholder risk in company structures. A Cambodian partner holding 51% of a local company has formal voting control. Supplementary agreements and powers of attorney reduce this risk but do not eliminate it. Legal due diligence by an independent Cambodian law firm is essential before entering any nominee-style arrangement.

International tax obligations. Investors who are tax residents in countries without a double taxation treaty with Cambodia - which currently includes most Western nations - should be aware that tax paid in Cambodia may only be partially creditable against domestic tax obligations. Consult a qualified tax adviser in your country of residence before purchasing.

Travel connectivity. Getting from most Western cities to Siem Reap requires a connection through Bangkok, Kuala Lumpur, or Ho Chi Minh City. Total journey time from Europe: 14-18 hours. Time zone: UTC+7.

FAQ

Can a foreigner buy a condominium in Siem Reap?

Yes. Foreigners may purchase a unit in a multi-storey condominium with full freehold title (hard title), provided the unit is on the first floor or above and the total foreign ownership in the building does not exceed 70%.

How much does an investment apartment in Siem Reap cost in 2026?

A studio of 28-35 sqm in a new development costs $45,000-$65,000. A one-bedroom unit of 50-65 sqm in a well-located project is priced at $75,000-$110,000.

What rental yields can I expect in Siem Reap?

Short-term rentals via Airbnb and Booking.com generate 8-11% gross per year. Long-term rentals to expats or local professionals yield 6-7% gross. After management fees and taxes, net yields are typically 2-3 percentage points lower.

In which currency are transactions conducted?

All transactions are conducted in US dollars (USD). Cambodia is one of the most dollarised economies in the world. The Cambodian riel (KHR) circulates alongside the dollar for small everyday purchases but plays no role in real estate transactions.

Is Siem Reap a better investment than Phnom Penh?

Siem Reap offers a lower entry price and higher short-term rental yields thanks to tourism-driven demand. Phnom Penh has greater secondary market liquidity and stronger demand for long-term rentals from expatriates and corporate tenants. The right choice depends on your investment strategy and risk appetite.

What taxes apply to foreign property owners in Cambodia?

Rental income is subject to a 14% withholding tax. An annual property tax of 0.1% of assessed value above $25,000 also applies. Corporate structures pay 20% corporate income tax on net profits.

Do I need a special visa to invest in Cambodia?

A tourist visa is sufficient to purchase a property. However, operating a rental business through a registered company requires a business visa (type EB) and a work permit. The annual cost of an EB visa is approximately $300.

What does the condominium purchase process look like step by step?

The typical sequence is: select the unit, sign a reservation agreement (deposit of $1,000-$5,000), sign the sale and purchase agreement with a payment schedule (common structures are 30/30/40 or 50/50), and complete the title transfer at the Ministry of Land Management. The entire process takes 4-8 weeks for a completed building.

Can I finance a purchase with a bank loan?

Cambodian banks do not generally extend mortgage loans to foreign nationals. Purchases are financed from personal funds or via developer payment plans, which typically allow 12-24 monthly instalments during the construction phase.

How has the new airport affected Siem Reap property prices?

SAI increased the city's passenger capacity from 1.5 million to 7 million per year and introduced direct routes from new Asian hubs. Since its opening in 2024, residential property prices within 5 km of the city centre have risen by 12-18%.

---

Ready to invest in Thailand or Cambodia property? Send us a request - our experts will find the best options for you.

Contact us ->