Are townhouses in Thailand a good investment?

Last updated on June 9, 2025

Authored by the expert who managed and guided the team behind the Thailand Property Pack

Everything you need to know before buying real estate is included in our Thailand Property Pack

Townhouses in Thailand offer a middle ground between condos and detached homes, but their investment potential varies significantly by location and use case.

As of mid-2025, Thailand's townhouse market has shown steady growth with 3.53% annual appreciation, offering 5-7% rental yields in prime locations. However, foreign ownership restrictions and higher management requirements make them more challenging investments compared to condominiums, which now allow up to 75% foreign ownership.

If you want to go deeper, you can check our pack of documents related to the real estate market in Thailand, based on reliable facts and data, not opinions or rumors.

Quick Summary:

Townhouses in Thailand present mixed investment opportunities with competitive 5-7% yields but come with significant foreign ownership restrictions and management responsibilities.

Best suited for long-term residents or investors with local connections, townhouses require careful location selection and thorough understanding of legal frameworks for success.

Investment Factor	Details
Average Prices	Bangkok: ฿4-5M ($112,000-140,000) Chiang Mai: ฿3-4M ($84,000-112,000) Phuket: ฿4-6M ($112,000-168,000)
Rental Yields	5-7% gross (competitive but requires more management than condos)
Foreign Ownership	Not directly possible (land ownership restricted) Alternatives: Leasehold, Thai company structure
Best Locations	Bangkok (near BTS/MRT), Hua Hin, Chiang Mai suburbs, select Phuket areas
Target Renters	Families, long-term expats, professionals Budget: ฿15,000-60,000/month

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Thailand. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Thai real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Bangkok, Chiang Mai, and Phuket. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Fact-checked and reviewed by our local expert

✓✓✓

Attaya Suriyawonghae 🇹🇭

Real Estate Broker, Zest Real Estate

As a Thai Real Estate Broker based in Phuket, Attaya possesses deep knowledge of the Thai market. Her insider perspective and local connections provide invaluable insights for property investors who want to make their dream come true in the Land of Smiles. Speaking with her allowed us to go back to the blog post, improve a few elements, and include her personal insights for a richer experience.

What exactly are townhouses and how do they differ from condos and detached homes?

Townhouses in Thailand are multi-level residences attached to neighboring units on both sides, typically featuring 2-4 floors with private front and back areas.

Unlike condominiums where you only own the interior unit space, townhouse owners hold title to both the building structure and the land beneath it. This fundamental difference means townhouse owners have complete control over their property but also bear full responsibility for all maintenance and upkeep.

Townhouses typically offer 150-300 square meters of living space, significantly more than most condos (30-150 sqm) but less than detached homes (200-500+ sqm). They represent a middle ground in terms of price, space, and maintenance requirements.

Foreign ownership restrictions apply to townhouses since they include land ownership, whereas condominiums allow direct foreign ownership up to 75% of the building's units as of 2025.

Feature	Townhouse	Condo	Detached Home
Land Ownership	Yes (building & land)	No (unit only)	Yes (building & land)
Maintenance	Owner handles everything	Managed by juristic person	Owner handles everything
Common Amenities	Limited or none	Extensive (pool, gym)	Private only
Foreign Ownership	Restricted	Allowed (75% quota)	Restricted
Typical Space	150-300 sqm	30-150 sqm	200-500+ sqm

What are the average prices, rental income, and yields for townhouses?

As of June 2025, townhouse prices in Thailand have increased by 3.53% year-on-year nationally, showing steady appreciation.

In Bangkok, standard townhouses cost ฿4-5 million (฿31,000/sqm average), generating rental income of ฿25,000-60,000/month in central areas or ฿15,000-30,000/month in suburban locations. This translates to gross yields of 5-6%, slightly below Bangkok's condo average of 6.05%.

Chiang Mai offers more affordable entry points at ฿3-4 million for 2-3 bedroom units, with rental income ranging from ฿15,000-30,000/month in popular neighborhoods. The gross yields here reach 6-7%, making it attractive for investors seeking higher returns.

Phuket townhouses command ฿4-6 million (฿32,000/sqm average), with tourist zone rentals fetching ฿20,000-50,000/month. However, yields vary widely from 4-7% depending on location and target market.

Thailand's overall residential rental yield averages 6.17% as of Q1 2025, with satellite cities like Samut Prakan (7.07%) and Nonthaburi (6.43%) offering higher returns than central Bangkok.

Is a townhouse a good investment based on different use cases?

The investment viability of townhouses depends significantly on your intended use and investment strategy.

For personal living, townhouses excel by offering more space than condos, private outdoor areas, and suitability for families. However, they require higher maintenance efforts and are often located farther from city centers. They're excellent for long-term residents seeking space and privacy.

As rental properties, townhouses attract stable family-oriented tenants who typically sign longer leases. While the 5-7% gross yields are competitive, the higher initial investment and increased management requirements mean you'll need to be more hands-on than with condo investments.

For flipping strategies, townhouses can generate 10-15% profit margins, especially in CBD areas. However, this requires significant renovation investment and careful market timing. The best opportunities often come from foreclosed properties or distressed sales below market value.

It's something we develop in our Thailand property pack.

What are the most profitable areas for townhouse investment in 2025?

The best townhouse investment locations balance growth potential, infrastructure development, and consistent rental demand.

Bangkok leads with properties within 500 meters of BTS/MRT stations commanding premium prices and rental rates. These locations ensure steady tenant demand from professionals and families who prioritize convenient transportation.

Hua Hin has emerged as a stable market with strong domestic demand, particularly from Thai retirees and Bangkok residents seeking second homes. The consistent year-round occupancy makes it ideal for rental investments.

Chiang Mai's growing digital nomad community and affordable entry prices create opportunities for investors. Family-friendly suburbs near international schools show particularly strong rental demand.

Bangkok's satellite cities, Samut Prakan and Nonthaburi, offer the highest yields exceeding 7%, benefiting from urban expansion and improving infrastructure while maintaining more affordable price points.

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Which areas should you avoid when investing in townhouses?

Several townhouse markets present higher risks and should be approached with caution or avoided entirely.

Tourist-dependent markets like Pattaya suffer from volatile seasonal demand, with occupancy rates fluctuating dramatically between high and low seasons. Central Phuket tourist zones face similar challenges, with high vacancy risks during off-peak periods.

Remote suburbs with poor infrastructure connections struggle to attract quality tenants and experience slower capital appreciation. Areas far from public transportation, schools, and shopping centers typically see rental yields 2-3% below well-connected locations.

Oversupplied developments, particularly those built during boom periods without adequate market research, face intense competition and downward pressure on rental rates.

Flood-prone zones without proper drainage systems pose both investment risks and ongoing maintenance challenges that can significantly impact returns.

What are the ownership rules and legal costs for foreigners?

Foreign ownership of townhouses faces significant restrictions since they include land ownership, which Thai law prohibits for non-citizens.

Foreigners have three main options: leasehold arrangements (30-year leases with renewal options, potentially up to 99 years under new proposals), Thai company structures (with foreign ownership limited to 49% of shares), or property registration in a Thai spouse's name only.

Legal and administrative costs are substantial, with due diligence fees running 1-3% of property value. Legal fees typically exceed those for condo purchases due to the complexity of structuring ownership. Company setup costs add another layer of expense if using the corporate structure route.

These restrictions contrast sharply with condominiums, where foreigners can directly own units up to 75% of the building (increased from 49% in 2024), making condos significantly more accessible for foreign investors.

Professional legal advice is essential to navigate these complexities and ensure compliance with Thai law.

What taxes and fees should you expect when buying and owning a townhouse?

Thailand's property tax structure applies uniformly to townhouses, with several costs to consider at purchase and during ownership.

Transfer fees of 2% of the appraised value are typically paid by the buyer, based on government appraisal rather than purchase price. Sellers face stamp duty of 0.5% (waived if specific business tax applies) and specific business tax of 3.3% if they've owned the property less than five years.

Withholding tax varies between 1% for companies and progressive rates for individuals, deducted at the time of transfer. These transaction costs can add 3-6% to your total investment.

Annual land and building tax stands at 0.3% for residential use, increasing to 1.2% for commercial properties. Properties left vacant for over three years face additional surcharges, encouraging productive use of real estate.

Unlike condos with their ฿35-140/sqm monthly maintenance fees, townhouses typically have minimal homeowners association fees, though owners bear full responsibility for all maintenance costs.

Tax/Fee	Rate	Who Pays	Notes
Transfer Fee	2% of appraised value	Buyer	Based on government appraisal
Stamp Duty	0.5%	Seller	Waived if SBT applies
Specific Business Tax	3.3%	Seller	If owned less than 5 years
Annual Property Tax	0.3% residential	Owner	1.2% for commercial use

Can townhouses be used for commercial purposes?

Townhouses can often accommodate mixed-use purposes, particularly those located on main roads with appropriate zoning.

Popular commercial uses include home offices (increasingly common post-pandemic), street-level retail in commercial zones, and professional services like consultancies or clinics. These arrangements can boost rental income significantly compared to purely residential use.

However, commercial use comes with important considerations. Zoning compliance is mandatory and must be verified with local authorities before conversion. Commercial properties face higher annual taxes of 1.2% versus 0.3% for residential use.

Renovation costs for commercial conversion typically exceed residential upgrades by 30-50%, requiring specialized fixtures, signage, and compliance with commercial building codes. Market volatility tends to be greater for commercial properties, and insurance requirements are more stringent.

It's something we develop in our Thailand property pack.

infographics rental yields citiesThailand

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 typical renovation costs for townhouses?

Renovation costs vary significantly based on scope and quality, with townhouses requiring careful budget planning.

Basic refresh work including painting, new flooring, and fixture updates costs ฿20,000-30,000 per square meter. For a typical 200sqm townhouse, this translates to ฿4-6 million total investment.

Standard renovations involving kitchen and bathroom upgrades, electrical work, and moderate structural changes run ฿30,000-40,000 per square meter, or ฿6-8 million for a 200sqm property. Kitchen renovations alone typically cost ฿200,000-1,000,000 depending on specifications.

Luxury upgrades exceeding ฿40,000 per square meter include high-end materials, smart home systems, and significant architectural modifications. Structural changes add 30-50% to base costs due to engineering requirements and permits.

Bathroom upgrades range from ฿100,000-300,000 each, depending on fixture quality and whether plumbing relocation is required.

Are townhouses easier or harder to manage than other property types?

Townhouses require significantly more management effort than condominiums but less than large detached properties.

Owners bear full responsibility for all maintenance including roof repairs, exterior painting, plumbing, electrical systems, garden upkeep, and security arrangements. This contrasts sharply with condos where professional management handles common areas and building systems.

Direct tenant management adds another layer of complexity, requiring landlords to handle maintenance requests, rent collection, and tenant screening personally. Unlike condos with on-site management offices, townhouse owners must coordinate all service providers independently.

Property management companies offer solutions at 10-15% of rental income, handling day-to-day operations and maintenance coordination. However, this significantly impacts net yields compared to self-management.

The management burden makes townhouses best suited for investors with local presence or reliable property managers, rather than absentee foreign investors seeking passive income.

What are common legal pitfalls for foreign buyers?

Foreign buyers face several unique challenges when purchasing townhouses that can lead to significant legal complications.

The fundamental issue is land ownership prohibition - foreigners cannot directly own land in Thailand, making townhouse purchases complex. Company structures must be genuine businesses with real Thai shareholders, not nominee arrangements which are illegal and risk property forfeiture.

Properties purchased through Thai spouses must be registered solely in the Thai spouse's name, with the foreign spouse signing a declaration of non-involvement. This creates vulnerability in divorce situations where the foreign spouse has no legal claim to the property.

Company ownership structures require maintaining 51% Thai ownership, incurring annual accounting and compliance costs of ฿30,000-50,000. There's always a risk of losing control if the structure is legally challenged.

Due diligence must verify proper title deeds (Chanote preferred), check for encumbrances and liens, and confirm building permits and zoning compliance. All contracts must be in Thai as the official language, creating translation risks and costs.

Who typically rents or buys Thai townhouses?

Understanding the target market is crucial for townhouse investment success, as the tenant and buyer profiles differ significantly from condominiums.

Typical renters include Thai families with children who prioritize space and proximity to schools, long-term expats with families seeking home-like environments, and young professionals wanting more space than condos offer. Small business owners needing home office space represent a growing segment. Rental budgets typically range from ฿15,000-60,000/month depending on location and property quality.

The buyer market consists primarily of Thai middle-class families who form the core demand, established expats with Thai spouses who understand the legal framework, and local investors targeting the family rental market. Developers seeking renovation projects also actively pursue undervalued townhouses.

Key preferences include minimum three bedrooms for families, parking for at least two cars, proximity to schools and shopping centers, gated community security, and modern kitchens and bathrooms. These requirements differ markedly from condo buyers who often prioritize location and amenities over space.

It's something we develop in our Thailand property pack.

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.

Townhouses in Thailand offer competitive 5-7% yields and steady appreciation but come with significant challenges for foreign investors due to land ownership restrictions and management requirements.

While condominiums remain more accessible with 75% foreign ownership quotas and professional management, townhouses can provide excellent returns for investors willing to navigate legal complexities and commit to hands-on management in well-chosen locations like Bangkok's transit corridors or Chiang Mai's family suburbs.