Phuket vs Cambodia Property Investment 2026: Stability, Yield & Entry Prices

Cambodia surprises many investors: it’s one of the few countries in Southeast Asia that allows foreigners to own property through a strata title mechanism — effectively freehold for condominiums on floors above ground level. Combined with a USD economy, low entry prices, and yields that look competitive on paper, Cambodia attracts buyers looking for the cheapest entry into the region’s property market.

Phuket offers more stability. Thailand’s political environment, legal system, tourist infrastructure, and property market depth are all considerably more mature than Cambodia’s. The key question is whether Cambodia’s lower prices and higher stated yields compensate for the higher country risk.

This comparison covers ownership rights, yield, entry prices, political risk, USD economy benefits, and what each market realistically delivers in 2026.

Phuket vs Cambodia: Key Metrics 2026

Factor	Phuket, Thailand	Cambodia (Phnom Penh / Siem Reap)
Foreign ownership	Freehold condo (49% quota)	Strata title for floors 2+ (quasi-freehold)
Ground floor / land	Leasehold or company structure	Ground floor land: foreigners cannot own
Gross rental yield	7–10%	6–8% (Phnom Penh), 3–5% (Siem Reap)
Net yield after costs	5–7%	4–6% (variable)
Entry price (condo)	from $85,000	from $30,000–$50,000 (studio)
Currency	Thai Baht (THB)	USD (dollarised economy)
Political risk	Low — stable democracy	Medium-high — one-party state, Hun family rule
Tourism (annual visitors)	9–10M (Phuket)	~6M (all Cambodia, recovering post-COVID)
Capital growth (recent)	15–25% (2020–2026, prime areas)	Slower; Phnom Penh flat 2020–2024
Resale liquidity	Strong — active buyer market	Limited — smaller buyer pool

Cambodia’s USD Economy: A Genuine Advantage

One thing Cambodia genuinely has over Thailand: it runs almost entirely on US dollars. The Cambodian Riel exists but is rarely used for significant transactions. Property prices are quoted in USD, rents are collected in USD, and developers accept USD directly.

This eliminates the currency conversion risk that affects rental income in Thailand (where tourists pay in THB, which management companies then convert to USD for foreign investors). In Cambodia, the full income chain is in hard currency. For investors already holding USD, there’s no friction.

Thailand’s Baht has been relatively stable (33–37/USD over recent years), so the currency risk is modest — but Cambodia’s dollarised economy is structurally simpler for foreign buyers.

Foreign Ownership in Cambodia: Strata Title Explained

Cambodia’s 2010 Law on Foreign Ownership allows foreigners to own units in co-owned buildings under “strata title” — provided the unit is above the ground floor. Ground floor units and land remain restricted to Cambodian citizens.

In practice, this means foreigners can buy condominiums in Phnom Penh’s high-rise developments on something close to freehold terms. The strata title is a genuine ownership right. However, the legal system underpinning these rights is younger and less tested than Thailand’s Condominium Act. Enforcement in disputes, particularly against well-connected local parties, can be unpredictable.

Cambodia also allows foreigners to use long-term leasehold (50–99 years) for other property types, and company structures are widely used for land acquisition — carrying similar risks to Thailand’s villa company ownership model.

Rental Yield: Cambodia’s Numbers Look Good Until You Dig In

Phnom Penh produces gross yields of 6–8% in its condominium market. These numbers circulate widely in developer marketing. The reality is more nuanced:

• Phnom Penh’s expat population (the primary tenant base) has been shrinking, not growing
• The condo market is significantly oversupplied — thousands of units completed 2017–2022 with vacancy rates in some districts above 30%
• Short-term Airbnb demand in Phnom Penh is modest; it’s not a major tourist destination compared to Phuket
• Management quality is inconsistent; guaranteed return programs from Cambodian developers carry more counterparty risk than Thai equivalents

Siem Reap (Angkor Wat) is a tourist town with strong short-term demand, but the market is smaller and less liquid. Property prices fell significantly during COVID and have been slow to recover.

Phuket’s 7–10% gross yield is backed by a larger, more diverse tourist market with 9–10 million international arrivals annually.

Political Risk: Thailand vs Cambodia

Thailand has periodic political turbulence (coups, political protests), but it has maintained consistent policies toward foreign property investment, and the legal system operates independently for property rights purposes. Foreign ownership rights have not been materially changed in decades.

Cambodia is effectively governed by a single political family. Prime Minister Hun Manet succeeded his father Hun Sen in 2023. The government has historically been favorable to foreign investment when it serves economic development goals, but policy can change without the checks and balances of a democratic system. Property rights for foreigners depend heavily on continued political goodwill.

This is an acceptable risk for some investors at the right price. For buyers seeking a 10–20 year hold, Thailand’s political stability record is meaningfully stronger.

Comparing Markets: Phnom Penh vs Rawai/Kata (Phuket)

A $60,000 studio in Phnom Penh vs a $85,000 studio in Rawai, Phuket: the Cambodia option saves $25,000 upfront. But consider:

• Rawai has a larger short-term rental market (more tourists)
• Management companies in Phuket are more reliable and better-regulated
• Resale in Phuket is easier — more active buyer market, more international agents
• Legal security of freehold in Thailand vs strata title in Cambodia

The yield difference (perhaps 1–2% in Cambodia’s favour on stated gross) doesn’t compensate for the risk and liquidity difference for most buyers.

Pros and Cons

Phuket

• ✅ Political stability and consistent foreign investment policy
• ✅ Higher tourist volumes and more diverse rental demand
• ✅ More mature resale market and buyer liquidity
• ✅ Well-tested legal framework for foreign owners
• ❌ Higher entry price ($85k minimum)
• ❌ 49% foreign quota limits unit selection

Cambodia

• ✅ Very low entry prices (from $30,000)
• ✅ USD economy — no currency conversion
• ✅ Strata title is a genuine ownership right
• ✅ Attractive stated yields
• ❌ Oversupplied condo market in Phnom Penh
• ❌ Smaller, less liquid resale market
• ❌ Higher political risk
• ❌ Less mature legal enforcement for disputes

The Verdict

Phuket wins on stability, liquidity, and legal security — and the yield difference is smaller than Cambodia’s marketed numbers suggest once oversupply and management quality are factored in. Cambodia is appropriate for risk-tolerant investors seeking the lowest possible entry price in Southeast Asia’s property market, particularly those who already have USD liquidity and want exposure to Cambodia’s long-term development story.

For buyers prioritising security of capital, reliable rental income, and a clear exit strategy, Phuket is the more dependable choice in 2026.

Frequently Asked Questions

Can foreigners own freehold property in Cambodia? +

Foreigners can own apartments above the ground floor through Cambodia's strata title mechanism, which is close to freehold. Ground floor units and land cannot be owned by foreigners. The legal framework exists but is younger and less tested than Thailand's.

What is the rental yield in Phnom Penh? +

Stated gross yields are 6–8% in Phnom Penh's condo market. However, the market is significantly oversupplied with vacancy rates above 20–30% in some districts. Net yields after vacancy and management are typically 4–5% for well-located properties.

Is Cambodia's USD economy an advantage for investors? +

Yes — property is priced, rented, and transacted in USD, eliminating currency conversion risk. This simplifies the investment structure compared to markets with local currency denomination.

How does political risk in Cambodia compare to Thailand? +

Cambodia carries higher political risk as a single-party state without independent checks on government power. Thailand has periodic political instability but consistent property rights policy. For a 10+ year hold, Thailand's track record is more reassuring for foreign investors.

Is Siem Reap a good property investment? +

Siem Reap has strong tourist appeal but a small and less liquid property market. Prices fell during COVID and recovery has been slow. It can work for short-term rental income during peak tourist seasons, but resale liquidity is limited and the investment case is weaker than Phuket.