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Phuket offers some of Thailand's strongest rental yields, with prime beachfront condos delivering 8-10% annual returns in 2025. The island's booming tourism sector and flexible short-term rental regulations create exceptional opportunities for property investors seeking high-yield assets.
Short-term rentals typically generate double the income of long-term leases, with Bang Tao and Laguna areas leading performance metrics. Modern one-bedroom condos in resort zones command premium rates, while luxury villas near beaches maintain consistent occupancy throughout the year.
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Phuket's rental yields range from 6-10% annually for condos and 5-8% for villas, with the highest returns concentrated in Bang Tao, Laguna, and beachfront locations.
Short-term rentals through platforms like Airbnb generate significantly higher income than long-term leases, with average monthly revenues of THB 57,000 compared to THB 15,000-80,000 for annual contracts.
| Property Type | Average Yield Range | Best Performing Areas | Monthly Income Range (THB) |
|---|---|---|---|
| Condos (1-2 bedrooms) | 6-10% | Bang Tao, Laguna, Kata | 50,000-80,000 |
| Luxury Villas | 8-10% | Beachfront locations | 180,000-350,000 |
| Standard Villas | 5-8% | Resort-adjacent areas | 60,000-180,000 |
| Townhouses | 5-7% | Rawai, Chalong | 20,000-50,000 |
| Short-term Rentals | 8-12% | All tourist zones | 57,000 average |
Fact-checked and reviewed by our local expert
Attaya Suriyawonghae 🇹đź‡
Real Estate Broker, Zest Real Estate
What's the current average rental yield in Phuket broken down by property type?
As of September 2025, Phuket delivers some of the strongest rental yields in Southeast Asia's property markets.
Condos in prime areas like Bang Tao and Laguna frequently exceed 10% gross annual returns, particularly for modern units with sea views. The island-wide average for condos ranges from 6-10% depending on location and property quality. These higher yields reflect strong tourist demand and flexible short-term rental regulations.
Premium beachfront villas yield 8-10% annually, while inland villas and gated community properties average 5-8%. Villa yields depend heavily on proximity to beaches and resort amenities, with properties offering pool access and ocean views commanding premium rates.
Townhouses and other landed homes typically generate 5-7% yields, with the highest returns concentrated in resort-adjacent zones. New townhouse developments primarily target long-term expat tenants, creating steady but moderate rental income streams.
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Which areas or neighborhoods in Phuket give the best and worst yields?
Bang Tao, Cherngtalay, and Laguna consistently deliver the highest rental yields at 8-10% annually, driven by their prime beachfront locations and high holiday rental demand.
| Area/Neighborhood | Typical Yield (2025) | Primary Rental Market |
|---|---|---|
| Bang Tao, Cherngtalay, Laguna | 8-10% | Holiday-focused, premium tourists |
| Kata, Karon, Surin, Patong | 7-9% | Tourist areas, high short-term demand |
| Kamala, Layan, Nai Harn | 6-8% | Mix of resort and residential tenants |
| Rawai, Chalong, Kathu | 4-5% | Local long-term tenants, lower tourism |
| Inland/Peripheral areas | 4-6% | Mainly long-term expat rentals |
How do yields vary depending on the size and surface of the property?
Smaller units consistently deliver higher yields per square meter in Phuket's rental market.
Compact condos of 50-60 square meters generate the highest yields, sometimes reaching 1,000-1,200 THB per square meter per month, translating to 10-12% annual returns. These units appeal strongly to both tourists and young professionals seeking affordable accommodation.
Large villas of 300+ square meters with 3-4 bedrooms produce lower yields per square meter due to higher purchase prices, but can still deliver 6-9% returns in prime locations when consistently rented short-term. The luxury villa market targets high-spending families and groups willing to pay premium rates.
Townhouses and family homes typically fall into the 5-7% yield range unless located in high-demand tourist zones. Mid-sized properties of 150-250 square meters often struggle to compete with either compact condos or luxury villas for rental income.
Property size optimization becomes crucial for maximizing returns, with one-bedroom units offering the best risk-to-reward ratio for most investors.
What's the typical total purchase price including fees and taxes for different property types?
Total property acquisition costs in Phuket include purchase price plus approximately 6.8% in fees and taxes.
| Property Type | Median Price per sqm (2025) | Typical Total Cost Range (THB) |
|---|---|---|
| Condo | 144,000 | 1.5-2M (studio), 6-19M (1-2BR) |
| Villa | 70,000 | 7-250M (range), 40-137M (3BR) |
| Townhouse | 35,000-60,000 | 4-15M (mid-range) |
Mandatory fees include 2% transfer fee, 3.3% business tax (if applicable), 0.5% stamp duty, and 1% withholding tax. Stamp duty applies when business tax isn't payable. These costs are typically split between buyer and seller, but foreign buyers often pay the full amount.
Branded properties command significant premiums, with up to 28% surcharges on condos and double pricing for luxury villas compared to non-branded alternatives. However, branded properties often deliver higher rental yields due to superior management and marketing.
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What are the ongoing costs of ownership—maintenance, management, taxes, and mortgage payments?
Ongoing ownership costs in Phuket vary significantly by property type and management approach.
Condo maintenance fees range from THB 40-100 per square meter monthly, meaning a 50-square-meter unit costs approximately THB 3,000 monthly. These fees cover common area maintenance, security, and building upkeep. Luxury developments typically charge higher fees but provide superior amenities.
Villa maintenance costs THB 5,000-20,000 monthly for basic upkeep, with additional pool and garden maintenance adding THB 4,000-15,000 monthly. Beachfront properties require more frequent maintenance due to salt air exposure and tropical weather conditions.
Land and building tax ranges from 0.02% to 0.3% of appraised value for residential properties, with higher rates for commercial use. Management fees for rental properties can consume 10-30% of rental income when using professional agents. Home insurance costs THB 3,000-50,000 annually depending on property value and coverage.
Recent government fee reductions have lowered mortgage registration costs to 0.01-1% of registered value, making financing more accessible for qualified buyers.
What's the difference in profitability between renting short term versus long term?
Short-term rentals consistently outperform long-term leases in Phuket's market, often generating double the income.
Short-term holiday rentals through platforms like Airbnb average THB 2,890 per day with 67% occupancy rates, generating approximately THB 57,000 monthly revenue. Annual revenue averages THB 689,649 (about $18,609), representing a 34% year-over-year increase in 2025.
Long-term rentals provide more stable but lower returns, typically yielding 4-7% annually. Monthly condo rents range from THB 15,000-80,000, while villas command THB 60,000-350,000 depending on location and amenities. Long-term contracts reduce vacancy risk and management overhead but sacrifice significant income potential.
Short-term rentals require more active management and compliance with local regulations, but enforcement against illegal rentals has increased. Properties must be properly licensed and managed to avoid penalties. The higher income potential often justifies the additional complexity for experienced investors.
Seasonal variations affect short-term rentals more dramatically, with peak months generating substantially higher rates than low seasons.
Can you give example monthly rental incomes for condos, villas, and townhouses in popular areas?
Rental income examples demonstrate the significant variations across property types and locations in Phuket.
| Property Type | Popular Areas | Monthly Rent (THB) |
|---|---|---|
| 1-Bed Condo (50-60sqm) | Bang Tao/Laguna | 50,000-60,000 |
| 2-Bed Condo | Island Average | ~63,000 |
| 3-4 Bed Villa (pool, prime) | Kamala, Kata, Cherngtalay | 180,000-350,000 |
| Townhouse (mid-range) | Rawai, Chalong | 20,000-50,000 |
These figures represent long-term rental rates, with short-term rates often commanding 50-100% premiums during peak seasons. Beachfront and sea-view properties consistently achieve the highest rental rates across all categories.
Who are the typical renters in Phuket—tourists, expats, long-term workers, retirees?
Phuket's rental market serves a diverse mix of tenants with varying needs and budgets.
Short-term renters primarily consist of tourists, digital nomads, and holidaymakers seeking resort-style living experiences. This segment shows strong seasonality and gravitates toward luxury beachfront properties and branded developments with hotel-style amenities.
Long-term renters include expats, remote workers, and retirees who prefer condos and villas in quieter residential areas. International families working in Phuket often seek larger properties near international schools and business districts. This segment values stability and community amenities over beachfront access.
Business professionals represent a growing segment driven by mixed-use developments around Cherngtalay and central Phuket. These tenants typically require furnished properties with reliable internet and professional environments.
Retirees often favor long-term rentals in developments with healthcare access and expat communities, particularly in areas like Rawai and Chalong where living costs remain moderate.
It's something we develop in our Thailand property pack.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Thailand 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 are the average vacancy rates by property type and location?
Vacancy rates in Phuket vary significantly between short-term and long-term rental strategies.
Short-term rentals through Airbnb and similar platforms maintain approximately 67% occupancy, translating to 33% vacancy periods. This relatively high vacancy rate is offset by substantially higher daily rates during occupied periods. Prime beachfront locations achieve higher occupancy than inland properties.
Long-term residential properties experience lower vacancy rates in established areas, typically below 10% in prime locations like Bang Tao and Laguna. However, outlying areas and new developments face much higher vacancy rates due to oversupply and limited tenant demand.
Luxury hotels in Phuket maintain over 84% occupancy in 2025, up from 81.5% in 2024, highlighting robust tourism demand that benefits short-term rental properties. This strong hotel performance indicates healthy underlying demand for accommodation across all market segments.
Branded developments generally achieve lower vacancy rates due to professional marketing and management systems that attract and retain quality tenants.
What are the smartest investment choices right now if you want strong yields with low risk?
The most promising investment opportunities in Phuket combine strong yield potential with manageable risk profiles.
Branded condos and villas in prime beach zones like Bang Tao, Laguna, Kata, and Kamala represent the safest high-yield investments. These properties benefit from professional management, established rental programs, and consistent demand from quality tenants.
One-bedroom condos offer the highest yield per square meter and appeal to both tourists and long-term renters, making them versatile investments. These units typically require lower maintenance costs while generating strong rental income relative to purchase price.
Landed villas near resort corridors provide stability and capital appreciation potential, especially when managed for short-term rentals. Properties with pools and modern amenities in established neighborhoods offer the best balance of income and growth potential.
Investors should avoid generic condos in oversupplied or inland markets, which typically deliver lower yields and face higher vacancy rates. Focus on properties with unique selling points like sea views, premium locations, or superior amenities.
It's something we develop in our Thailand property pack.
How have rental prices and yields changed compared with five years ago, and compared with last year?
Phuket's property market has experienced significant appreciation over the past five years, with continued growth in 2025.
Condo prices have increased from THB 110,000 per square meter in 2020 to THB 140,000 in 2025, representing approximately 27% appreciation over five years. Villa prices have risen from around THB 18 million in 2020 to THB 25 million in 2025, showing similar growth patterns.
Rental yields have actually improved despite price increases, rising from 5-7% in pre-pandemic guaranteed schemes to 8-10% or higher in prime areas today. This improvement reflects strong tourism recovery, flexible rental regulations, and increased demand for quality accommodation.
Short-term rental revenue has surged over 30% year-over-year from 2024 to 2025, demonstrating the market's robust recovery and growing profitability. This growth significantly outpaces most other regional property markets and reflects Phuket's strengthening position as a premier resort destination.
The combination of capital appreciation and improved yields creates a compelling investment environment for properly selected properties in prime locations.
What's the forecast for Phuket rental yields over the next one, five, and ten years, and how does it compare with other similar cities?
Phuket's rental yield outlook remains positive across all time horizons, though growth rates may moderate from current levels.
For 2026, continued strong yields of 6-10% annually appear likely in core zones as tourism demand remains robust. The Thai property market is expected to cool but remain attractive compared to most Asian peers, supporting stable rental performance.
By 2030, property prices are forecast to reach THB 180,000+ per square meter for condos and THB 35+ million for villas. Yields will depend on regulatory changes but should remain high for well-positioned assets, particularly branded properties and beachfront locations.
Through 2035, investment returns are expected to remain robust as Phuket maintains its position as Asia's leading resort rental market. Infrastructure improvements and continued tourism growth should support long-term demand.
Compared to similar markets, Phuket currently offers 6-10% average yields with strong capital growth potential. Bali delivers higher average yields of 7-15% but faces greater regulatory complexity. Pattaya provides more supply but lower yields of 5-8% with less premium pricing power.
Phuket's combination of yield performance, capital appreciation, and regulatory stability positions it favorably among Southeast Asian resort markets.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Phuket stands as one of Asia's premier resort rental markets in 2025, offering exceptional opportunities for property investors seeking high yields with moderate risk.
The island's combination of strong tourism demand, flexible rental regulations, and diverse property options creates an attractive investment environment for both short-term and long-term strategies.
Sources
- Bangkok Post - Phuket Posts Over 10% Rental Yield
- Siam Real Estate - Phuket Condo Rent Buyers Guide 2025
- JFTB Immobilier - Phuket Rental Yield 2025
- CBRE Thailand - Phuket Condos and Villas 2025
- BambooRoutes - Should You Buy a Villa in Phuket
- Villa Carte - Investments and Business
- Investment Property Phuket - Market Forecast
- Sunway Estates - Phuket 2025 Market Trends
- Airbtics - Annual Airbnb Revenue in Phuket
- C9 Hotelworks - Phuket Property Market Update