Indonesia: Bali & Jakarta
Indonesia's STR market is anchored by the resort island of Bali and the capital Jakarta, offering two very different opportunities. Tourism in Indonesia is booming, with Bali alone welcoming 6.3 million foreign visitors in 2024 (up 19.5% YoY, surpassing pre-pandemic levels). Digital nomads and expats add to demand (Bali's long-term rentals to remote workers grew sharply, now ~20% of the market). Foreign investors face some ownership restrictions – land is generally off-limits, but foreigners can buy leasehold villas or condos (often 25–30 year leases) and apartments via certain structures. Notably, Indonesia launched a new "Golden Visa" in mid-2023 to attract high-net-worth investors and talent, which, alongside a potential digital nomad visa, is expected to bolster long-term stay demand in Bali and beyond. Overall, Indonesia offers very strong STR returns, especially in Bali's villa segment, though success hinges on navigating local regulations and professional management.
Highlights
$280K
Avg. Villa Price
Bali (Badung)
12%
Gross ROI
Bali (Badung)
45-65%
Occupancy
Bali (Badung)
$150
ADR
Bali (Badung)
$180K
Avg. Condo Price
Jakarta
7%
Gross ROI
Jakarta
43%
Occupancy
Jakarta
$45
ADR
Jakarta
Bali (Resort Villas)
STR Performance
Bali is Southeast Asia's premier vacation rental market, with an average occupancy around 45–65% (seasonal peaks mid-year) and a high Average Daily Rate (ADR) around $150. This yields a robust Revenue per Available Rental (RevPAR) near $68. On average, an entire home listing in Bali grosses about $13K in annual rental revenue. High-end villas can command ADRs of $200–400+ per night in prime areas like Canggu or Uluwatu. Occupancy has been on a strong uptrend – July 2025 hit ~64.7% occupancy, outperforming 2024 – as operators prioritize filling units even if it means moderating rates.
ROI Potential
Rental yields in Bali are among the highest in the region. Villas in tourist hotspots typically offer gross yields of ~7–15%, thanks to high ADRs and solid demand. A 2-bedroom pool villa ($300K price) can generate 10–12% gross ROI, with top-performing villas achieving net ROI of 15–20% annually after costs. For example, a $350K leasehold 3BR villa in Canggu can net ~$48K/year after expenses (13.7% ROI). Well-managed luxury villas even reached 17–18% net yields in 2025's strong market. Operational costs (staff, management, maintenance) typically consume ~30–35% of gross revenue, still leaving ~8–12% net returns which far exceed typical long-term rental yields.
Demand & Trends
Bali benefits from year-round tourism (beaches, culture, surfing) and a growing expat/remote worker community. International arrivals rebounded strongly (6.3M in 2024), and occupancy now consistently beats last year's levels each month. Operators have adapted by focusing on occupancy over high rates, given increased competition – a "volume over price" strategy that has sustained occupancy above 60% even as some rates softened. This has kept total STR revenues in Bali resilient (monthly rental revenue ~$112–115M in mid-2025). The market is maturing: supply is expanding thoughtfully (many new villas, 87% of listings are villas), pricing is stabilizing, and professional management is common. Bali's global appeal and improving infrastructure (e.g. planned new airport) continue to drive strong rental demand.
Investment Climate
Foreign buyer activity in Bali is high, especially from Australia, Singapore, China, and Europe. While freehold ownership is restricted (foreigners generally cannot hold land directly), many investors use long leaseholds or nominee structures to acquire villas. Leasehold dominance is clear (82% of Bali listings are leasehold). The regulatory environment is relatively accommodating for STRs – there is no nationwide Airbnb ban, though hosts are expected to pay local hotel/restaurant taxes and have proper visitor permits. Notably, Indonesia's new Golden Visa (5-10 year residency for large investors) and proposed digital nomad visa signal government support for foreign investment and longer tourist stays. In short, Bali offers a unique mix of tropical lifestyle and high ROI, making it a top choice for STR investors (as reflected by its #1 ranking among Airbnb markets in SE Asia).
Jakarta (Urban Rentals)
STR Performance
Jakarta's short-term rental market centers on serviced apartments and condos in prime business districts. Occupancy averages ~43–56% in Jakarta's STRs, a respectable figure given many units also cater to longer 30+ day stays (over half of listings allow long stays). The ADR in Jakarta is relatively modest, ~$45–$65, reflecting the city's affordability compared to other capitals. RevPAR comes in around $17–$32. A typical 2-bedroom unit might gross $6–10K per year in rental revenue. (Airbtics estimates ~$7.6K annual STR revenue on a $120K condo, for ~7.75% yield). Jakarta's market score is strong (AirDNA "Great" at 99/100) with high seasonality and demand scores, indicating the potential when fully optimized.
ROI Potential
Gross yields in Jakarta condos are ~5–7% for premium areas, and higher for smaller units. GlobalPropertyGuide puts Jakarta's average gross rental yield at ~7.1% in Q3 2025. Notably, compact city-center apartments can yield 9–12% long-term (e.g. a central studio bought for ~$37K rents for ~$400/month, ~13% yield), though such high yields may require 12-month occupancy. For short-term rentals, after factoring periodic vacancies and host fees, expect ~5% net ROI for upscale units and up to ~7–8% for well-managed smaller flats. Jakarta's STR yields are competitive for a capital city – higher than Singapore or Hong Kong's ~3–5% – thanks to moderate property prices and decent STR demand. With professional hosting and multi-channel marketing, owners can boost occupancy and approach the upper end of yield ranges.
Demand & Trends
Jakarta is a massive metropolis (metro pop. ~30M) with steady rental demand from business travelers, expats, and domestic visitors. As Indonesia's economic hub, it sees constant traffic for conferences, projects, and urban tourism. While not a leisure destination like Bali, Jakarta's STR occupancy got a lift from the return of business travel in 2024–2025 and a growing trend of digital nomads basing in affordable big cities. Many STR bookings are for longer stays (1–3 months), which is reflected in 63% of listings allowing 30+ night stays. This blended model (short and mid-term stays) keeps occupancy healthy year-round. ADRs have grown a few percent YoY, but remain value-oriented – an advantage in attracting price-sensitive travelers. Overall STR revenue in Jakarta has been rising (+5% YoY). One emerging trend: developers are creating "aparthotel" style condos targeting investors, offering rental management and guaranteed yields (6–8% for 1–2 years) to tap into the STR boom.
Investment Climate
Foreign investors find Jakarta relatively accessible. Foreigners can own strata-title apartments in Indonesia (subject to minimum price thresholds that vary by city; in Jakarta roughly IDR 3+ billion, ~$200K, for a centrally located unit). This condo ownership rule is a key regulatory advantage over villas/land which foreigners can only lease. As a result, we see Singaporean, Chinese, Middle Eastern and local Indonesian investors active in Jakarta's condo market. Prices in Jakarta are still low by regional standards ($1,600/sqm average, far below Bangkok or KL), providing a low entry point. There are no specific restrictions on short-term leasing in Jakarta, though some building bylaws or local officials may impose guidelines – overall the environment is permissive. The city's upcoming infrastructure upgrades (new MRT lines, suburban rail) and the planned relocation of Indonesia's capital to Borneo in future years have not dampened Jakarta real estate interest; in fact, investors are bullish on Jakarta's continuing role as the country's commercial center. With gross yields 7% (and potential for higher through STR), Jakarta offers a balanced, stable investment – less spectacular than Bali, but with less seasonality and solid long-term prospects.
Thailand: Bangkok & Phuket
Thailand's STR sector is one of the region's most developed, buoyed by a huge tourism industry (Thailand is targeting 36–39 million international visitors in 2025) and large expatriate communities. Bangkok, the capital, and Phuket, the resort island, illustrate the spectrum: Bangkok provides steady year-round occupancy in an urban setting, while Phuket offers high ADRs and seasonal peaks in a beach paradise. Foreign investors are very active – Thailand allows foreigners to own condos (freehold up to 49% of a building) and has no capital gains tax for individuals, making it attractive. Regulatory note: Short-term rentals under 30 days are technically regulated (owners should have hotel licenses or minimum 30-day contracts), but enforcement is inconsistent. Many hosts operate in a gray area, especially in tourist zones, though a crackdown is possible. Still, Thailand remains STR-friendly in practice, and many new developments are STR-focused (branded residences, pool villas with rental programs). In terms of returns, Thai markets typically yield 6–10% gross for STRs, higher than long-term rentals which average ~4–6%. Below we profile Bangkok and Phuket – both among the top Airbnb markets in SE Asia by Airbtics' 2025 data.
Bangkok (Urban STR Apartments)
STR Performance
Bangkok is a year-round destination and shows strong occupancy ~60–66% on average for short-term rentals. AirDNA data (which may include some longer stays) put current occupancy around 56%, with an ADR about $65. This implies a RevPAR of ~$32, and indeed AirDNA reports RevPAR ~$31–32 with ~+6% YoY growth. Bangkok has roughly 15,000–30,000 active STR listings (Airbtics counts ~15.2K on Airbnb; AirDNA including duplicates shows ~29K). A typical 2-bedroom condo in a central area might earn around $10–12K/year via STR – for example, averaging 65% occupancy at ~$50/night yields ~$12K (consistent with Airbtics' figure of $12,051 annual revenue). Occupancy is relatively stable across the year (Bangkok's seasonality score is high at 97/100, meaning demand is consistent without extreme peaks/troughs).
ROI Potential
Short-term rental yields in Bangkok reach ~6–8% gross, versus ~4–6% for long-term tenancies. According to a 2025 market study, a well-furnished Bangkok condo can net Airbnb ROI of 6–8% p.a. For instance, a THB 5M ($140K) 2BR in Sukhumvit might gross ~$12K/year (8.5% gross yield) and, after management fees and costs, net ~5–6%. Average gross yields across Bangkok are around 5–6%, but focus on STR in the tourist-friendly neighborhoods (Sukhumvit, Silom/Sathorn, Ari) pushes it closer to 7%. Importantly, many Bangkok investors use hybrid strategies – e.g. renting to expats long-term at 5% yield, or doing 1-year leases and filling gaps on Airbnb – but those going full-STR can outperform. Overall, investors can expect mid-single-digit net ROI reliably, with upside if they leverage peak tourist seasons.
Demand & Trends
Bangkok enjoys robust traveler demand from multiple segments: tourism (cultural sights, shopping, medical tourism), business travel (ASEAN's business hub), and as a transit gateway. Pre-pandemic it was the world's most visited city, and in 2025 it's rebounding toward that status. International arrivals through Bangkok are high – e.g. April 2025 saw 2.54M foreign visitors to Thailand, many via Bangkok's airports. STR demand is strong for centrally located condos near public transport. Occupancy often tops 70–80% in peak months, especially in well-reviewed listings. However, hosts must be mindful of the 30-day law; some now require 30-night minimums or rotate guests cleverly. In response to rising supply, Bangkok hosts have kept rates competitive (ADR ~$44–50, lower than KL or HCMC), which has attracted longer stays (average booking ~8–12 nights for many).
Investment Climate
Thailand is generally welcoming to foreign investors, and Bangkok is usually their first pick. Foreigners can buy condos freehold (up to 49% of units in a building), which has led to extensive foreign ownership in central Bangkok. This is a major regulatory advantage – it's straightforward to own, and there are established legal frameworks (as opposed to trusts/leases in some neighbors). Financing for foreigners is limited, so most buy cash, but entry prices are reasonable (condos from ~$100K). Bangkok has no city-level STR ban, though as mentioned, the national law requires <30-day rentals to be in licensed hotels. In practice, many condominiums quietly allow Airbnb, especially in tourist-heavy areas, though some upscale buildings prohibit it via bylaws. Investors should select STR-friendly properties (some new projects even design units for Airbnb use). The government's stance in 2025 is to tighten some controls (e.g. potential requirement to register STR units), but also to avoid stifling the sharing economy. Notably, Thailand's strong tourism recovery (expected 35M+ visitors 2025) and a new Long-Term Resident (LTR) visa for professionals/retirees are positive factors. Bangkok also benefits from relatively low taxes (rental income taxed ~15% net, no CGT for individuals). In summary, Bangkok offers a secure, high-demand environment for STRs, with good liquidity (large resale market) and moderate, predictable returns.
Phuket (Vacation Villas & Condos)
STR Performance
Phuket is Thailand's flagship resort market, known for its beaches and luxury stays. It boasts one of the highest STR occupancies and ADRs in Asia. Current data show occupancy around 65% on average – and this likely crosses 80% in the high season (Dec-Mar). ADR is roughly $80–$90, second only to Bali and Koh Samui in the region. In fact, Airbtics ranks Phuket 6th in SE Asia, with ~65% occ, $82 ADR, and about $19.7K annual revenue per listing. Villa rentals in Phuket often fetch even higher nightly rates: upscale pool villas commonly rent at $200–$400/night to holiday groups. RevPAR for Phuket comes out to a hefty ~$50–$60, reflecting its status as a true vacation hotspot. Monthly STR revenues in peak season rival hotel figures, and 2025 has seen strong performance – e.g. Phuket welcomed 7.6 million tourists in the first 7 months of 2025, generating THB 290B ($9.1B) in tourism revenue. This influx has kept rental calendars full.
Demand & Trends
Phuket's rental demand is driven by international tourism – over 8.6 million arrivals in 2024 (just 5% below 2019's record), and 2025 is on track to surpass that. The island's appeal to Europeans, Russians, Middle Eastern and regional Asian tourists means a fairly diversified visitor base. Notably, in 2025 Russian tourists surged (Thailand saw record numbers from Russia), which benefited Phuket's luxury villa segment (longer stays, high spending) as well as more budget condos for workcationers escaping winter. Occupancy peaks Nov–March, often pushing STRs to near full booking, then dips in the off-season (June–Sept rains) – but even off-peak, many operators offer discounts to maintain ~40–50% occupancy.
ROI Potential
Phuket offers very attractive yields for STR investors. It's often cited that Phuket has the strongest short-term rental yields in Thailand (9–12% Airbnb ROI). High occupancy and ADR combine to drive this. For instance, a 2-bedroom sea-view condo ($200K) could gross ~$20K/year (10% gross yield) and net ~7% after costs – far above a long-term lease yield of ~5%. Pool villas, though pricier, can generate even higher ROI: some developers guarantee ~6–8% net for 5 years, implying gross yields ~10–12%. According to Veles Club research, Phuket STR investments typically yield 9–12% gross, vs 6–9% on long-term. Our regional ranking (later) shows Phuket near the top for ROI. It's important to account for seasonal variability – cash flows in Phuket are high in peak season and quieter in monsoon months – but annualized returns remain excellent. One case: an investor owning two Rawai condos bought at ฿3.2M each ($90K) reports Airbnb net income of ฿500k ($14K) per unit per year – that's ~15% net yield (though this might include exceptional occupancy). In summary, gross yields ~10% and net yields ~7%+ are realistic in Phuket's STR market, making it a top pick for yield-focused investors.
Investment Climate
Phuket is a magnet for foreign property buyers. It's common to see developments specifically courting overseas investors (with marketing in Chinese, Russian, English). Foreigners can own condos freehold in Phuket under the condo quota, and many do. For landed villas, foreigners use leaseholds (30-year renewable leases are standard) or set up Thai companies. The local authorities historically took a laissez-faire approach to STRs – unlicensed rentals have proliferated, though in 2025 the government indicated a desire to register and tax them more. Still, enforcement on individual pool villas remains low; most operate without issue, paying income tax on earnings. Phuket's property market is quite liquid for a resort area: resale demand exists, and developers often offer buyback options or rental guarantees. One regulatory advantage: Thailand allows developers to offer guaranteed rental returns (which some countries disallow) – in Phuket, deals of 5-year 7% net guaranteed are not uncommon, giving investors peace of mind (though one should vet the developer's reliability). Foreign buyer appetite remains strong – beyond expats, we see a lot of interest from Chinese (despite currency controls, they find ways), Russians (Phuket has become a favored destination), Middle Eastern and Indian investors, as well as Europeans/Aussies looking for holiday homes with income. Thailand's relatively low cost of ownership (no annual property tax for most condos until recently, low maintenance fees) and the baht's stability make Phuket property an attractive asset. In short, Phuket offers a combination of tropical lifestyle and high returns that few places can match – albeit with the need to navigate seasonal swings and legal nuances of short-term renting (savvy local agents and lawyers can assist, and many projects come fully managed for STR).
Highlights
$220K-$380K
Avg. Condo Price
Bangkok
7%
Gross ROI
Bangkok
66%
Occupancy
Bangkok
$49
ADR
Bangkok
$350K-$600K
Avg. Villa Price
Phuket
10%
Gross ROI
Phuket
65%
Occupancy
Phuket
$80
ADR
Phuket
Vietnam, Malaysia, Philippines & Cambodia Markets
Vietnam: Ho Chi Minh City & Da Nang
Vietnam's STR market is burgeoning, propelled by rapid tourism growth and increased openness to foreign investors in recent years. Vietnam welcomed 17.6 million foreign visitors in 2024 (nearly back to 2019 levels) and projects over 22 million in 2025, highlighting its fast recovery. The country offers a mix of urban and coastal STR opportunities – we focus on Ho Chi Minh City (Saigon) and Da Nang. Foreign ownership rules in Vietnam allow foreigners to buy condominiums (up to 30% of units in a building, 50-year leasehold renewable), which has enabled international investment in cities like HCMC and Da Nang. While land ownership remains off-limits (all land is state-owned; even locals get long leases), foreigners can own houses or villas within approved projects (up to 10% of units). Vietnam's regulatory environment for STRs is in flux – there have been moves to regulate homestays in Hanoi and Danang, but as of 2025 enforcement is limited; Airbnb and others operate freely, though hosts should pay taxes. Yields in Vietnam's STR hotspots are excellent, often 8–11% gross, thanks to relatively low property prices and growing tourism revenue.
Ho Chi Minh City (HCMC, Saigon)
STR Performance: HCMC, Vietnam's largest city and commercial hub, has a dynamic STR market with thousands of listings. Occupancy averages in the mid-40% range currently – AirDNA reports ~44% occupancy – but some data suggest it's higher for active entire-home rentals (Airbtics cites ~52% average). ADR in HCMC is around $45–$56 (AirDNA: ~$55.9). That results in a RevPAR roughly $22–$24. These figures translate to about $9–10K annual revenue per listing, placing HCMC among the top Airbnb markets in SE Asia (ranked 5th by Airbtics).
ROI Potential: HCMC offers solid ROI, especially for mid-range condos. Typical short-term rental yields are ~8–10% gross, versus long-term rental yields of ~5–7%. For example, a $150K new 2BR apartment might rent long-term for $750/month (6% yield) but could gross ~$1,200/month via STR (assuming ~60% occ at $70/night), which is ~$14.4K/year or ~9.6% gross. Veles Club's 2025 report pegs HCMC's Airbnb ROI at 8–10% and long-term yields 5.5–7%. In practice, many investors achieve near-double-digit gross yields and ~6–7% net after expenses.
Da Nang (Coastal Vacation Market)
STR Performance: Da Nang is Vietnam's top coastal city for STRs, thanks to its beaches and tourist attractions. Occupancy rates average 50–65% here, reflecting heavy tourism during summer months. AirDNA's data shows ~52% occupancy currently with ADR ~$88 – notably high ADR for Vietnam, indicating Da Nang's popularity. RevPAR by AirDNA is ~$39. In revenue terms, an average listing in Da Nang earns about $8–11K per year. That is quite impressive given the low cost of living; indeed, Da Nang ranks #11 in Southeast Asia's top Airbnb markets by Airbtics. The city has around 11,000 active rentals on Airbnb, a number that has grown (+8% YoY listing growth) as more hosts come online post-pandemic.
ROI Potential: Da Nang offers some of the highest yields in Vietnam. It's common to see gross STR yields of 9–11% in Da Nang – in fact, Veles Club data puts Da Nang's short-term ROI at 9–11% vs 6–7.5% for long-term. What drives this is the relatively affordable property prices (as low as $1,500–$2,500/sqm for condos) coupled with solid rental income. A new 2BR condo near My Khe Beach might cost $100K and easily gross $10K/year via Airbnb in a normal year (10% yield). Net yields after costs are generally in the 6–8% range, which is excellent.
Highlights
Da Nang, Vietnam
Gross ROI (%): ~10% Net ROI (%): ~7% ADR ~$88 (tourism rebounding) Occ ~52%
Ho Chi Minh City, Vietnam
Gross ROI (%): ~9% Net ROI (%): ~6% Occ ~44–52%, ADR ~$50
Malaysia: Kuala Lumpur & Penang
Malaysia stands out as a particularly attractive STR investment destination due to its lenient regulations, affordable property prices, and strong tourism numbers. Unlike some neighbors, Malaysia has no nationwide ban on short-term rentals – the government has a relatively permissive stance, leaving any restrictions to individual building strata rules. This, combined with robust tourism growth (Malaysia recorded 25+ million international tourists in 2024, +24% YoY) and a large domestic travel market, creates fertile ground for STRs. Additionally, foreign investors are welcomed: foreigners can own freehold property (mostly condos/strata) in Malaysia, with minimum price thresholds (around MYR 1 million, ~$220K, in most of KL and Penang). The rental yields in Malaysia's STR sector are competitive – gross yields of 8–12% in top locales like KL and Penang – boosted by high occupancy rates (often 70%+ in prime areas). We profile Kuala Lumpur, the capital, and Penang, the cultural coastal hotspot, as the two key markets. Notably, both cities rank among the top in SE Asia for remote-work friendliness and monthly rental demand. Malaysia's overall appeal lies in offering higher occupancy and ROI than many regional competitors (for example, KL/Penang STRs often outperform Bangkok or Manila in occupancy and returns).
Kuala Lumpur (Capital City)
STR Performance: KL's short-term rentals have been performing impressively, buoyed by diverse demand from tourists, business travelers, and digital nomads. Occupancy rates average ~60–72% in central KL, higher than many Asian capitals. According to AirDNA, Malaysia's overall Airbnb occupancy is ~68% with KL hitting ~70–72% in peak periods. Hosts in Kuala Lumpur achieve an ADR around $50–$70 (roughly MYR 218 average, which is ~$46), depending on property class. An example comparison: KL's average is RM250/night (≈$55) at 72% occupancy, yielding ~RM65,700 ($14K) annual revenue. This aligns with Airbtics data which shows a 2BR in KL generating ~$62.9K MYR ($13.5K) yearly with 58% occupancy and RM218 ADR. In short, annual revenues of $10K–$15K are common per STR unit in prime KL areas.
ROI Potential: Kuala Lumpur offers solid yields with STR – around 8–10% gross. While long-term rental yields in KL average a modest ~3–5% (high-end condos often only ~3–4%), short-term rentals can boost yields into the high single digits. Our data shows KL 2BR units yielding ~8.8% gross on average via STR. Net yields after cleaning, management (if outsourced ~15–20%), and expenses usually come out to ~5–7%.
Penang (Heritage City & Beach Stays)
STR Performance: Penang, especially George Town, has become a hotspot for boutique short-term rentals. Occupancy in Penang STRs is among the highest in Southeast Asia – averaging around 75%. MyRehat notes that prime Penang listings (George Town heritage zone) achieved 78% occupancy with ADR ~RM300 (≃ $65), translating to ~RM85,320 ($18.5K) annual revenue. Even outside of peak, AirDNA data shows Penang's occupancy holding in the mid-60s%. ADR is relatively high because of Penang's attractiveness; budget listings exist, but many are high-quality heritage shophouses or seaview condos. The RevPAR therefore is excellent – e.g. $66 ADR * 78% occ ≈ $51 RevPAR, surpassing even Bali on that metric.
ROI Potential: Penang can deliver very high STR yields – often 10–12% gross. Being a smaller market, yields vary by property type: heritage homes might have different economics than modern condos. But overall, data suggests Penang's STR gross yields are among the best in Malaysia. As per Airbtics' by-city data, a standard 2-bedroom in Penang can yield 5.5% on long-term rental vs ~12% on short-term. On the conservative side, investors can count on 8–10% gross and 5–7% net for a well-located Penang unit.
Highlights
Kuala Lumpur, Malaysia
Gross ROI (%): ~9% Net ROI (%): ~6% Occ ~60–72%, ADR ~$50
The Philippines: Metro Manila & Cebu
The Philippines is another compelling STR market, characterized by high rental demand, English-speaking hospitality, and strong yields, albeit with a bit more operational complexity (e.g. traffic in Manila, fragmented islands). Metro Manila, the capital region, and Cebu City, the Visayas region's hub, are prime areas for STR investments. The country saw a significant tourism reboot after reopening in 2022 – international arrivals reached 4.8 million in 2023 and are climbing in 2024/25 (though still catching up to 8.3M in 2019). What sets the Philippines apart is a massive overseas Filipino (balikbayan) market – millions of Filipinos abroad visit yearly and often prefer renting condos – and the widespread use of English, making it easy for foreign hosts and guests to interact. Foreign ownership in the Philippines is straightforward for condos (up to 40% of any condominium development can be sold to foreigners) but not allowed for land (aside from long leases). This means most foreign investors focus on city condos or condotels. Regulatory environment: there is no national law against Airbnb; in fact, the Department of Tourism has partnered with platforms to promote stays. Some condo buildings (especially in Makati) have rules against short rentals, but many don't. Yields in the Philippines STR scene are quite attractive – Manila and Cebu gross yields range ~8–10% according to analytics – thanks to moderate property prices and decent ADRs.
Metro Manila (Makati, BGC, etc.)
Metro Manila, comprised of multiple cities (Makati, Taguig/BGC, Pasay, etc.), has a large and growing STR market. Occupancy averages about 50–57% across Metro Manila's Airbnb listings. Airbtics data (Sep 2024–Aug 2025) shows 51% occ, $38 ADR, and ~$7.3K annual revenue for Metro Manila on average. In practice, the best areas (Makati CBD, Bonifacio Global City, Ortigas) often see higher occupancy (60%) and ADRs ($50+ for nice 1BRs). Manila's STR gross yields are in the high-single digits, generally 8–9% on average. Airbtics calculates Metro Manila's short-term rental yield at 8.57% on a typical 2BR ($120K property).
Cebu City (Metro Cebu)
Cebu City, the "Queen City of the South," is the Philippines' second city and a tourism gateway. It has a vibrant STR market, though smaller than Manila's. Occupancy in Cebu STRs averages 55–60%, slightly higher than Manila's, reflecting perhaps less competition and strong tourist inflow. Airbtics data shows 57% occ, $33 ADR, ~$7K annual revenue for Cebu City STRs (with an average property price around $120K). Cebu City's STR yields are similar to Manila's, roughly 9–10% gross on average, and potentially higher in certain segments. With an average $120K property and $11.8K STR revenue, Airbtics pegs Cebu's gross yield ~9.8%.
Highlights
Cebu City, Philippines
Gross ROI (%): ~10% Net ROI (%): ~7% Occ ~57%, ADR ~$33 (mix of biz and leisure)
Metro Manila, Philippines
Gross ROI (%): ~8.5% Net ROI (%): ~6% Occ ~51%, ADR ~$38 (strong long-stay demand)
Cambodia: Phnom Penh & Siem Reap
Cambodia's STR scene is smaller in scale but presents an interesting frontier for returns. The country leverages its famous attractions (Angkor Wat in Siem Reap) and a growing urban scene (Phnom Penh's cafes, co-working spaces) to draw visitors. Cambodia welcomed about 5 million international tourists in 2023, and aims to get back to 6-7M by 2025 (2019 level was 6.6M). While that's lower than neighbors, it's significant for a population of 16M and focused in just a few destinations. Foreign ownership in Cambodia is relatively liberal: foreigners can own condos (freehold strata) with no quota limit nationwide (just not ground floor units). This is a big plus – Cambodia is the only SE Asian country aside from Malaysia with freehold condo ownership for foreigners. Land can't be owned by foreigners directly, but can be on 50-year leases or via Cambodian companies. The regulatory approach to STRs in Cambodia is very relaxed – there have been no crackdowns; in fact, the government has limited capacity to enforce or even tax small-scale rentals, and they tend to encourage any tourism facilitation. Yields in Cambodia have historically been high due to low property costs and rental demand. For example, prior to the pandemic, Phnom Penh condos often offered 6–10% yields. With STR, one can push to the upper end: we see potential for gross yields ~7–10% in the best cases (Phnom Penh's average yield ~7.7% in 2025 by one estimate). However, occupancy is the challenge – oversupply of condos in Phnom Penh and the slow tourism recovery in Siem Reap mean hosts need savvy marketing.
Phnom Penh (Capital City)
Phnom Penh's STR market is nascent and a bit inconsistent, reflecting the city's primary focus on business and expats rather than leisure tourists. Occupancy hovers in the mid-30s% range on average – AirDNA shows ~36% occupancy currently. The ADR is about $40–$45 (AirDNA cites $42 average), which is reasonable given local rental costs. Gross yields in Phnom Penh STR can reach ~8–10%, though averages are a bit lower due to current occupancy challenges. GlobalPropertyGuide states Cambodia's average rental yield ~7.7% (Q3 2025), and Phnom Penh condos often fall in the 6–8% range long-term. Short-term rentals, if one can achieve 50%+ occupancy, can push that closer to 9–10%.
Siem Reap (Tourism & Boutique Stays)
Siem Reap is the gateway to Angkor Wat, and thus heavily tourist-dependent. The STR market here was hit hard by the pandemic (international arrivals virtually stopped and are still recovering). Currently, occupancy is on the low side – around 24–30% on average. AirDNA shows ~28% occupancy and ADR ~$62. The annual revenue per listing is only about $2.7K by AirDNA's data, reflecting the still-sluggish tourism recovery. Siem Reap's current rental yields are moderate (5–7% gross), due to low occupancy. However, as tourism rebounds, those yields could rise significantly. Before the pandemic, well-run Siem Reap guesthouses were known to yield over 10% net.
Highlights
Phnom Penh, Cambodia
Gross ROI (%): ~8% Net ROI (%): ~5% Occ ~36%, ADR ~$42 (growing expat demand)
Bangkok, Thailand
Gross ROI (%): ~7% Net ROI (%): ~5% Occ ~66%, ADR ~$49 (year-round hub)
Regional ROI Ranking & Investment Platform
Recap Regional ROI Ranking by City (Gross vs. Net)
The table below ranks the 12 highlighted cities by estimated Gross ROI (annual rental revenue as a percentage of property purchase price) and provides an approximate Net ROI (after typical operating costs like management fees, utilities, maintenance, taxes). These figures assume Q4 2025 market conditions and average 2-bedroom STR properties in prime areas of each city, based on the data and trends discussed. Gross ROI is influenced by occupancy, ADR, and property price; Net ROI assumes ~30% of gross income goes to expenses (though this varies by market). Actual results will depend on property specifics and management efficiency. Nonetheless, this ranking gives a directional comparison of STR investment returns across Southeast Asia's top markets:
This ranking underscores that resort markets like Bali, Penang, Phuket, Da Nang currently offer the highest gross yields – their strong tourism demand outweighs property costs. Major cities KL, HCMC, Manila follow with solid ~8–9% yields, benefiting from year-round occupancy and balanced demand. Emerging or recovering markets Phnom Penh, Siem Reap are lower at present, but also present upside as conditions improve. Net ROI in all cases remains a healthy mid-single-digit percentage, often superior to local long-term rental yields or financing costs, making STR an attractive strategy region-wide.
Propex – Your Gateway to Easy STR Investment
Propex is the marketplace that makes investing in Southeast Asia's short-term rentals simple, transparent, and accessible. After exploring the opportunities across Indonesia, Thailand, Vietnam, Malaysia, the Philippines, and Cambodia, you might wonder: How do I actually buy or invest in these properties and start earning? That's where Propex comes in.
What is Propex? Propex is an all-in-one property investment platform designed for global investors like you to buy, sell, or invest fractionally in curated STR properties with confidence and ease. Think of it as a seamless bridge between you and the high-yield vacation rentals in these booming markets – without the jargon, without the hassle.
Curated Opportunities
We handpick villas, serviced apartments, and unique homes with strong track records (or high potential) in Bali, Bangkok, KL, and other hotspots. Each listing comes with verified data – occupancy, ADR, expenses, ROI projections – so you can make an informed choice.
Ease of Purchase
Whether you're a first-time investor abroad or a seasoned real estate owner, Propex simplifies the process. Our platform guides you through legal requirements, financing options, and even property management setup. Want to buy a condo in Kuala Lumpur or a villa in Phuket? It's as straightforward as browsing our marketplace, clicking "Invest," and letting our team handle the rest.
Fractional Investments
Not ready to purchase an entire property? Propex offers fractional shares in high-end STR portfolios. For example, invest $10K and co-own a Bali villa – earning rental income proportionate to your stake. You get exposure to top markets and diversification, with Propex managing the properties professionally.
Transparent Returns
We provide clear financial breakdowns for each opportunity. You'll see gross and net yield estimates, management fees, local taxes – no hidden surprises. Track your earnings through our dashboard; see occupancy updates, monthly payouts, and growth in property value over time.
Invest in Paradise, From Home: Imagine owning a slice of a beachfront villa in Bali or a stylish condo in downtown Bangkok – and earning income every time travelers check in. Propex turns that vision into reality. We empower you to build a portfolio of high-yield vacation rentals across Southeast Asia without the usual barriers – no need to fly over for paperwork, no need to become an Airbnb host yourself (unless you want to). It's real estate investing reimagined for the digital, global age.
Hundreds of investors have already signed up to capitalize on Southeast Asia's STR boom. The platform is free to join, and even just browsing will give you live examples of properties discussed in this report – complete with up-to-date performance data. Whether you want to buy outright, co-invest, or simply learn more, Propex is your trusted partner. Investing in short-term rentals in emerging markets may seem complex, but with Propex, it's as easy as booking a holiday. We handle the work; you reap the rewards. It's time to turn those high occupancy rates and rising ADRs into a source of income for you – and perhaps enjoy a free stay in your investment property on your next vacation!
Sources: Data and insights in this report were drawn from AirDNA market reports, Airbtics analytics, government tourism statistics, industry analyses (Veles Club, InvestLandBali, GlobalPropertyGuide, etc.), and Q3/Q4 2025 market reports and news. All data are as of late 2025. The ROI ranking table combines these sources as detailed in context. This comprehensive approach ensures accuracy and relevance for investment decisions.