The Private Office · Investment
Investing in Phuket property: the honest numbers
Phuket can be a good place to own property. It is not a good place to buy on a brochure's promise. Here is how Khun Mark judges an investment, and the questions to ask before you do.
Why investors look at Phuket
The island draws demand from several directions at once: holidaymakers, families relocating for the international schools, retirees and people who work remotely. That gives owners a choice of holiday letting or long-term tenants, and a resale market with buyers from many countries.
None of that makes every property a good investment. Return comes from the specific home: where it is, what it cost, how it is held, how well it is built and how well it is run.
How a property is assessed
The five questions asked of every purchase
- 1
Is the price right?
It is compared with recent sales and similar homes, not with the developer's last price list.
- 2
How is it held?
Foreign freehold, leasehold or a company structure. Title affects who you can sell to and what a lender, buyer or heir will accept.
- 3
Who will rent it, and for how much?
Holiday guests, long-term tenants or both. Khun Mark looks at real competing listings, not a projected yield.
- 4
What will it cost to own?
Common fees, sinking fund, management, maintenance, furnishing, insurance and tax. These decide the net return.
- 5
Who will buy it from you?
An investment is only as good as its exit. The next buyer is considered before you become the owner.
The numbers
Rental yields and prices
Khun Mark will not publish an island-wide yield. A sea-view condo in a busy building and a family villa near the schools behave completely differently, and averages hide that.
- Typical price per sq m by area: condos ฿156,000 and villas ฿86,000 in Cherngtalay, condos ฿144,000 and villas ฿58,000 in Karon, condos ฿130,000 and villas ฿73,000 in Rawai, and condos ฿109,000 and villas ฿83,000 in Wichit (median prices, C9 Hotelworks Phuket Property Market Update, May 2025)
For a specific property, use the rental income calculator with your own figures, then ask him to check them.
Where Khun Mark looks
Areas he knows well
Bang Tao and Cherngtalay.
Home turf. Beach, Boat Avenue, schools and steady demand from families and holidaymakers.
Kamala.
Sea views and holiday-let appeal on the west coast.
Rawai and Nai Harn.
A settled expat community in the south, with more space for the money.
Layan.
Quieter luxury next to Bang Tao.
The risks
What to be careful of
Off-plan delays.
Developers can finish late or change the specification. Check what they have finished before, and tie payments to construction stages.
Guaranteed rental returns.
A guarantee is only as strong as the company giving it, and is often built into the price.
Nominee company structures.
Using Thai shareholders who are not genuine investors to hold land is illegal and can leave you with no protection.
Lease renewals.
Only the first 30 years of a lease can be registered. Promised renewals are a contract, not a right at the Land Office.
Oversupply.
Too many similar units in one area pushes rents down.
Currency.
Your return in pounds, euros or dollars moves with the baht.
This is general guidance, not legal or financial advice.
The service
How Khun Mark helps investors
- Market analysis for the areas and property types you are considering
- Sourcing based on your goals and budget, including the property search service
- Due diligence support alongside your lawyer
- Guidance through acquisition, contracts and ownership setup
- Management after purchase, for holiday or long-term lets
Mark's background includes strategic investment consulting in both the UK and Thailand.
Questions
Is Phuket real estate a good investment?
It can be, for the right property at the right price, held on a sound title and well managed. Demand from tourists, relocating families and long-stay residents supports both holiday and long-term letting. But returns vary widely between buildings and areas, so judge each property on its own numbers rather than the island's reputation.
Is buying property in Phuket a good investment for foreigners?
Foreigners can buy condos freehold within the foreign quota, which makes resale straightforward. Villas are usually leasehold, which suits a home or a long-term hold but needs care around renewal terms and resale. Factor in exchange rates, costs and tax in your home country. This is general guidance, not legal or financial advice.
What is the best investment in Thailand for foreigners?
There is no single answer. A foreign freehold condo is the simplest property to own and sell. A well-located villa on a properly drafted lease can suit a long-term owner. Match the property to how you will use it and how long you will keep it, and take independent legal and tax advice.
What to be careful of in Phuket?
Unrealistic rental guarantees, off-plan developers without a track record, nominee company structures for owning land, leases that rely on unregistered renewals, and buildings that do not permit short-term letting. Check the title, the developer and the building rules before you pay a deposit.
What rental yield can I expect?
It depends entirely on the property. Use the calculator with your own figures, then let Khun Mark check them against real rents for similar homes.
Bring a property, or a budget
Send Khun Mark a listing you are considering, or tell him what you want to invest and why. He will give you his honest view.
