Authored by the expert who managed and guided the team behind the Thailand Property Pack
Yes, the analysis of Phuket's property market is included in our pack
Phuket's property market in early 2026 is shaped by strong tourism recovery, rising foreign buyer interest, and significant new supply in prime coastal areas like Choeng Thale and Kamala.
For foreign investors, the safest route remains buying a freehold condominium within the 49% foreign ownership quota, while villas require leasehold arrangements on the land.
This guide breaks down exactly which neighborhoods in Phuket offer the best yields, which areas are overheating, and where smart investors are finding value in 2026.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Phuket.
Fact-checked and reviewed by our local expert
Attaya Suriyawonghae 🇹🇭
Real Estate Broker, Zest Real Estate
What's the Current Real Estate Market Situation by Area in Phuket?
Which areas in Phuket have the highest property prices per square meter in 2026?
As of early 2026, the three most expensive areas for property in Phuket are Choeng Thale (which includes Bang Tao and Laguna), Kamala, and Karon, with Choeng Thale consistently topping the charts at around 165,000 THB per square meter for condominiums and 155,000 to 175,000 THB for branded villas.
In these premium Phuket neighborhoods, typical condo prices range from 140,000 to 180,000 THB per square meter, while high-end branded villas can reach 250,000 THB per square meter or more, particularly for oceanfront properties in the Laguna area.
Each of these Phuket neighborhoods commands premium prices for different reasons:
- Choeng Thale (Bang Tao/Laguna): integrated resort ecosystem with international schools, golf courses, and branded residences.
- Kamala: quiet hillside luxury with panoramic ocean views and proximity to upscale beach clubs.
- Karon: established beachfront tourism infrastructure with strong year-round rental demand from families.
Which areas in Phuket have the most affordable property prices in 2026?
As of early 2026, the most affordable areas for property investment in Phuket include Wichit (around 105,000 THB per square meter for condos), Si Sunthon in Thalang district (around 92,000 THB), Kathu town center (around 85,000 to 95,000 THB), and parts of Pa Khlok in eastern Thalang (around 60,000 to 75,000 THB for landed properties).
In these more budget-friendly Phuket neighborhoods, you can expect to find condos priced between 60,000 and 105,000 THB per square meter, and landed properties or townhouses in the 35,000 to 75,000 THB per square meter range.
The trade-off for these lower Phuket property prices is typically distance from the beach (often 15 to 30 minutes by car), fewer tourist-oriented amenities, and rental demand that relies more on local professionals and families rather than vacationers, which means steadier but lower rental income potential.
You can also read our latest analysis regarding housing prices in Phuket.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Thailand. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
Which Areas in Phuket Offer the Best Rental Yields?
Which neighborhoods in Phuket have the highest gross rental yields in 2026?
As of early 2026, the Phuket neighborhoods delivering the highest gross rental yields are Patong (7 to 10% for short-term rentals), Rawai (6 to 8% for villa long-stays), Wichit and Ko Kaeo (6 to 8% for family long-term rentals), and Choeng Thale (5 to 7% with potential for higher if purchased below market).
Across Phuket as a whole, gross rental yields typically range from 5 to 8% for well-managed properties, which is notably higher than many resort markets in Europe or Australia, though yields can vary significantly based on management quality and whether you focus on short-term or long-term tenants.
Here is why these Phuket neighborhoods outperform others for rental returns:
- Patong: densest year-round tourist foot traffic and highest occupancy rates during peak season.
- Rawai: strong long-stay expat demand and villa rentals commanding 130,000 to 260,000 THB per month.
- Wichit and Ko Kaeo: lower purchase prices combined with stable family tenant demand near schools and hospitals.
- Choeng Thale: premium rental rates from upscale tenants but high purchase prices requiring careful deal selection.
Finally, please note that we cover the rental yields in Phuket here.
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Which Areas in Phuket Are Best for Short-Term Vacation Rentals?
Which neighborhoods in Phuket perform best on Airbnb in 2026?
As of early 2026, the top-performing Phuket neighborhoods for Airbnb and short-term vacation rentals are Patong (highest year-round occupancy at around 65 to 75%), Kamala (premium nightly rates of 3,500 to 8,000 THB for quality units), Karon (steady family tourism demand), and the Bang Tao corridor in Choeng Thale (strong villa bookings averaging 6,000 to 15,000 THB per night).
In these prime Phuket short-term rental areas, well-managed properties typically generate monthly revenues between 60,000 and 150,000 THB for one-bedroom condos during high season (November to April), while pool villas can bring in 200,000 to 400,000 THB monthly during peak periods.
These Phuket neighborhoods outperform others for vacation rentals because of distinct advantages:
- Patong: walkable beach and nightlife access guarantees consistent bookings even in shoulder season.
- Kamala: upscale beach club proximity (like Cafe del Mar) attracts premium-paying guests.
- Karon: family-friendly beach and mid-range price point appeal to budget-conscious tourists.
- Bang Tao (Choeng Thale): Laguna resort ecosystem and villa stock attract groups and families for longer stays.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Phuket.
Which tourist areas in Phuket are becoming oversaturated with short-term rentals?
The three Phuket tourist areas most at risk of short-term rental oversaturation in early 2026 are Patong (extremely high competition from over 4,000 active listings), new-build clusters in Choeng Thale (where condo supply has surged to 54% of all active developments), and the Karon-Kata corridor (dense mid-market inventory competing on price).
In Patong alone, there are now over 4,000 active short-term rental listings competing with hundreds of hotels, while Choeng Thale has seen rapid new supply with around 40,600 units across 343 active developments island-wide, with condos representing 83% of total supply.
The clearest sign of oversaturation in these Phuket areas is not occupancy dropping dramatically, but rather nightly rates being undercut aggressively and new owners being forced to offer discounts of 20 to 30% versus their original rental projections just to maintain bookings.
We have made this infographic to give you a quick and clear snapshot of the property market in Thailand. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which Areas in Phuket Are Best for Long-Term Rentals?
Which neighborhoods in Phuket have the strongest demand for long-term tenants?
The Phuket neighborhoods with the strongest long-term rental demand in 2026 are Choeng Thale (upscale families and remote workers), Rawai and Chalong (long-stay expats and marina-adjacent lifestyle renters), Wichit and Ko Kaeo (local professionals and families near schools), and Kathu (central commuters and golf course proximity).
In these high-demand Phuket long-term rental areas, vacancy periods typically run just two to four weeks between tenants for well-priced units, compared to six to eight weeks in less desirable inland areas without beach access or lifestyle amenities.
The tenant profiles driving long-term rental demand vary across these Phuket neighborhoods:
- Choeng Thale: expat families with children at international schools and remote professionals seeking lifestyle upgrades.
- Rawai and Chalong: retirees, fitness enthusiasts, marina users, and repeat visitors who stay three to six months.
- Wichit and Ko Kaeo: Thai professionals, teachers, and healthcare workers valuing commute convenience.
- Kathu: golf community members and mid-level professionals seeking central access without beach premiums.
One key factor making these Phuket neighborhoods attractive to long-term tenants is proximity to practical infrastructure: Choeng Thale offers Boat Avenue retail and multiple schools, Rawai has the Nai Harn fitness scene and marina access, and Wichit provides hospital adjacency and local markets that reduce daily living costs.
Finally, please note that we provide a very granular rental analysis in our property pack about Phuket.
What are the average long-term monthly rents by neighborhood in Phuket in 2026?
As of early 2026, average long-term monthly rents in Phuket range from around 16,000 THB for a one-bedroom condo in Wichit to over 320,000 THB for a three-bedroom ocean-view pool villa in Kamala, with significant variation based on location, view, and whether the property has a private pool.
For entry-level apartments in Phuket's most affordable neighborhoods like Wichit and Kathu, expect to pay 16,000 to 28,000 THB per month for a furnished one-bedroom condo suitable for a single professional or couple.
In mid-range Phuket neighborhoods like Rawai and Karon, typical rents for a comfortable two-bedroom condo or townhouse run between 25,000 and 45,000 THB per month, offering a good balance of lifestyle amenities and reasonable commute to beaches.
At the premium end in Choeng Thale and Kamala, expect to pay 45,000 to 80,000 THB monthly for a high-quality two-bedroom condo, while three-bedroom pool villas in these areas command 160,000 to 380,000 THB per month depending on sea views and proximity to the beach.
You may want to check our latest analysis about the rents in Phuket here.
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Which Are the Up-and-Coming Areas to Invest in Phuket?
Which neighborhoods in Phuket are gentrifying and attracting new investors in 2026?
As of early 2026, the Phuket neighborhoods showing the clearest signs of gentrification and new investor interest are Si Sunthon (spillover from Choeng Thale at lower prices), Ko Kaeo (strategic location near future transport links), Chalong (marina lifestyle and family-oriented development), and the inland edges of Kathu (benefiting from proposed tunnel and expressway access).
These gentrifying Phuket neighborhoods have experienced annual price appreciation of roughly 8 to 12% over the past two years, compared to the island-wide average of 5 to 7%, as developers increasingly target these areas for new mid-range projects with modern amenities.
Which areas in Phuket have major infrastructure projects planned that will boost prices?
The Phuket areas most likely to benefit from major infrastructure projects are the Airport-to-Chalong corridor (planned Light Rail Transit Phase 1), Kathu (proposed expressway and tunnel to Patong), Ko Kaeo (expressway node), and Mai Khao in northern Phuket (airport expansion and new hospital development).
Specific infrastructure projects underway or planned include the Phuket Light Rail Transit connecting the airport to Chalong (estimated at 35 billion THB for Phase 1), the Kathu-Patong Tunnel and Expressway (around 16 billion THB), and the Phuket International Airport expansion to 18 million passenger capacity by 2029.
Historically, Phuket areas near completed infrastructure projects have seen price increases of 15 to 25% within three years of project announcement, though actual completion timelines in Thailand often extend beyond initial estimates, so investors should factor in holding period flexibility.
You'll find our latest property market analysis about Phuket here.
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.
Which Areas in Phuket Should I Avoid as a Property Investor?
Which neighborhoods in Phuket with lots of problems I should avoid and why?
The Phuket areas that first-time foreign investors should approach with particular caution include Patong for short-term rental investment (extreme competition and regulatory scrutiny), generic new-build condo clusters in Choeng Thale without differentiation, and locations with visible infrastructure strain like inadequate drainage or waste management issues.
Here are the main problems affecting specific Phuket investment areas:
- Patong (for STR beginners): over 4,000 competing listings, heavy hotel supply, and highest enforcement visibility for illegal daily rentals.
- Undifferentiated Choeng Thale condos: 54% of island supply concentrated here means average units face long vacancy and rent discounting.
- Areas with service strain: Phuket's publicized waste management challenges affect livability and guest reviews in certain zones.
For these Phuket areas to become viable, Patong would need clearer short-term rental licensing, Choeng Thale's generic stock would need renovation or standout amenities, and infrastructure-stressed zones would require municipal investment in waste processing and drainage that is currently years away.
Buying a property in the wrong neighborhood is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Phuket.
Which areas in Phuket have stagnant or declining property prices as of 2026?
As of early 2026, the Phuket areas most likely experiencing flat or declining real prices are older secondary-market condos in the Patong-Karon-Kata tourist belt (particularly unrenovated buildings over 10 years old), inland areas of Thep Krasattri and Pa Khlok without lifestyle amenities, and oversupplied new-build clusters where developer discounting has become common.
These stagnating Phuket areas have seen price growth of roughly 0 to 2% annually in real terms over the past two to three years, compared to 8 to 12% appreciation in premium Choeng Thale and Kamala locations, representing a widening gap between desirable and average stock.
The underlying causes of price stagnation differ across these Phuket areas:
- Older Patong-Karon condos: new competing supply offers better amenities at similar prices, making resale difficult.
- Inland Thep Krasattri and Pa Khlok: car-dependent locations without beach or lifestyle appeal struggle to attract foreign buyers.
- Oversupplied new clusters: developer incentives and discounts create a ceiling on resale prices until inventory clears.
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Which Areas in Phuket Have the Best Long-Term Appreciation Potential?
Which areas in Phuket have historically appreciated the most recently?
Over the past five to ten years, the Phuket areas that have appreciated most strongly are Choeng Thale (particularly the Laguna and Bang Tao zones), Kamala hillside, Layan, and to a lesser extent Rawai, driven by branded development, limited land availability, and sustained foreign buyer demand.
Here is the approximate appreciation these top Phuket areas have achieved:
- Choeng Thale (Bang Tao/Laguna): land values have multiplied roughly 10 times since 2004, with condo prices up 8 to 12% annually recently.
- Kamala: hillside villa land has appreciated 12 to 18% year-over-year in 2024 and 2025.
- Layan: quieter luxury enclave with 10 to 15% annual appreciation driven by scarcity.
- Rawai: steady 6 to 8% annual growth as expat long-stay demand deepened.
The main driver of above-average appreciation in these Phuket areas has been the intersection of constrained beachfront land supply (only about 15% of Phuket is developable), the entry of internationally branded developers raising price ceilings, and visa reforms like the Long-Term Resident program making extended stays more practical for wealthy foreigners.
By the way, you will find much more detailed trends and forecasts in our pack covering there is to know about buying a property in Phuket.
Which neighborhoods in Phuket are expected to see price growth in coming years?
The Phuket neighborhoods expected to see the strongest price growth through 2027 and beyond are Choeng Thale (continued branded development momentum), Ko Kaeo and Kathu (infrastructure project upside), Chalong (transport corridor benefits and marina expansion), and Mai Khao (airport expansion and new Bumrungrad Hospital).
Projected annual price growth for these high-potential Phuket neighborhoods:
- Choeng Thale: 5 to 8% for standard product, 8 to 10% for branded residences.
- Ko Kaeo and Kathu: 8 to 12% if expressway and tunnel projects proceed on schedule.
- Chalong: 6 to 10% as light rail planning advances and marina traffic grows.
- Mai Khao: 8 to 12% driven by airport capacity expansion and new medical tourism infrastructure.
The single most important catalyst expected to drive future price growth in these Phuket neighborhoods is the progression of the Light Rail Transit project connecting the airport to Chalong, which would fundamentally improve accessibility and reduce the car-dependency that currently limits the appeal of inland locations.
We made this infographic to show you how property prices in Thailand compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What Do Locals and Expats Really Think About Different Areas in Phuket?
Which areas in Phuket do local residents consider the most desirable to live?
The Phuket areas that local Thai residents consider most desirable for everyday living are Ko Kaeo and Wichit (convenient commutes and hospital access), Kathu town center (central without tourist congestion), and the more developed parts of Chalong (good schools and marina proximity).
Here is what makes these Phuket areas most desirable to local residents:
- Ko Kaeo: close to Phuket Town employment centers and Bangkok Hospital Phuket.
- Wichit: affordable housing near Central Festival mall and practical daily amenities.
- Kathu: golf course proximity, central location, and avoidance of beach traffic.
- Chalong: marina access, international school proximity, and newer housing developments.
These locally-preferred Phuket areas tend to attract Thai middle-class families, government employees, teachers at international schools, and healthcare professionals who prioritize commute convenience over beach proximity.
Interestingly, local Phuket preferences often diverge from foreign investor targets, since locals value practical amenities like hospital proximity and school quality over oceanfront views, which means some of the best "local life" investment opportunities are in areas that foreign buyers overlook.
Which neighborhoods in Phuket have the best reputation among expat communities?
The Phuket neighborhoods with the strongest reputation among long-term expat residents are Rawai (established expat community and villa lifestyle), Choeng Thale (international school access and upscale amenities), Kamala (quieter premium beach living), and Nai Harn (fitness and wellness scene with lower density).
Expats prefer these Phuket neighborhoods for distinct lifestyle reasons:
- Rawai: mature expat social infrastructure, gym culture, and easy access to multiple beaches.
- Choeng Thale: Boat Avenue dining, Laguna resort facilities, and proximity to international schools.
- Kamala: quieter than Patong with premium beach clubs and hillside privacy.
- Nai Harn: wellness-oriented community, less commercial development, and natural beauty.
The typical expat profile in these Phuket neighborhoods includes retirees (particularly in Rawai and Nai Harn), remote workers and digital nomads (increasingly in Choeng Thale), and families with school-age children (concentrated near Laguna and British International School zones).
Which areas in Phuket do locals say are overhyped by foreign buyers?
The three Phuket areas that local residents and industry insiders commonly consider overhyped by foreign buyers are Patong beachfront condos (overpriced for what you get), generic Choeng Thale new-builds (high prices without differentiation), and Surin (limited beach access despite premium pricing).
Here is what locals believe makes these Phuket areas overvalued:
- Patong beachfront: congested, noisy, and poor value compared to quieter beaches with better water quality.
- Generic Choeng Thale condos: foreign buyers pay branded prices for cookie-cutter units that struggle to rent.
- Surin: premium pricing despite restricted beach access and limited walkable amenities.
Foreign buyers typically see proximity to famous beach names and brand recognition as worth premium prices, while locals know that actual livability, beach water quality, and practical daily convenience often don't match the marketing hype in these tourist-focused areas.
By the way, we've written a blog article detailing the experience of buying a property as a foreigner in Phuket.
Which areas in Phuket are considered boring or undesirable by residents?
The Phuket areas that residents commonly consider less exciting or undesirable include inland parts of Thep Krasattri and Pa Khlok (car-dependent with few amenities), industrial zones near Saphan Hin, and overdeveloped areas near Phuket Town without beach access or lifestyle appeal.
Here is why residents find these Phuket areas less desirable:
- Inland Thep Krasattri and Pa Khlok: quiet to the point of isolation, requiring a car for everything.
- Saphan Hin area: industrial character and lack of residential amenities.
- Dense Phuket Town fringes: traffic congestion without the charm of Old Town or beach convenience.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Phuket, we always rely on the strongest methodology we can and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Bank of Thailand | Thailand's central bank publishing official residential price indices. | We used their South region price index to anchor island-wide price trends. We applied their late-2025 momentum as a conservative baseline for early 2026 projections. |
| C9 Hotelworks | Leading Phuket hospitality and property research firm with decades of local expertise. | We used their submarket price medians as our primary by-area pricing dataset. We referenced their supply breakdown to identify oversaturation risks in specific submarkets. |
| CBRE Thailand | Global real estate consultancy with formal Thailand market research. | We used their tourism and airport passenger data to validate rental demand drivers. We cross-checked their figures against short-term rental performance metrics. |
| AirDNA | Industry-standard short-term rental analytics platform used by institutional operators. | We used their occupancy, ADR, and revenue data to calculate realistic STR yield estimates. We applied their seasonality patterns to adjust for high and low season variance. |
| Cushman & Wakefield | Major global consultancy with standardized hotel and property market research. | We mapped tourist accommodation supply concentration to identify STR competition zones. We used their pipeline data to flag areas where new supply may compress yields. |
| Bangkok Post | Thailand's major English-language newspaper with verified project reporting. | We identified infrastructure projects that could re-rate property prices. We used their reporting to map specific transport corridor geography for investment targeting. |
| Reuters | Top-tier international wire service with rigorous fact-checking standards. | We used their coverage of Thailand property finance and credit policy for macro context. We referenced their Phuket infrastructure strain reporting to flag livability risks. |
| Thailand BOI (LTR Visa Portal) | Official Thai government Long-Term Resident visa platform. | We used it to ground the practical reality of foreign long-stay options. We referenced LTR eligibility to contextualize long-term rental demand from qualified foreigners. |
| Global Property Guide | Long-running cross-country housing data publisher citing primary Thai sources. | We used it as secondary validation for national price trends already anchored by Bank of Thailand. We did not rely on it as primary source for Phuket neighborhood-level data. |
| The Nation Thailand | National news outlet citing REIC and government statistics directly. | We used their foreign condo transfer reporting to validate demand direction. We cross-referenced their data to avoid assuming foreign demand is always increasing. |
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