Wealth & Investment
Rental Yields in Phuket: What a Luxury Property Really Earns
Gross yield is the number brochures quote. This is what a luxury property in Phuket earns after the costs nobody prints.
99Habitat Research · 27 Aug 2026 · 6 min read
In short
Well-chosen luxury property in Phuket produces 6–8% gross under managed programmes. Net returns typically land one to two percentage points lower after management, service charges and vacancy.
The gross number
6–8% gross under managed programmes in Phuket. That is the number to start from, not the number to plan with.
Phuket's prime segment is dominated by hotel-branded residences that come with professional rental management — attractive for owners who want income without operating a villa themselves.
What comes off the top
Service charges, management fees, letting commission, insurance, maintenance reserve and void periods. In prime markets these routinely absorb a fifth to a third of gross rent, and service charges on branded or amenity-heavy buildings are the most commonly underestimated line.
Tax matters too: transfer fees on purchase; rental income taxable in thailand
Where the demand actually is
Bang Tao & Layan: Prime beachfront; highest ADR.
Kamala & Millionaire's Mile: Sea-view villas, scarce plots.
Rawai & Nai Harn: Value entry, year-round residents.
How we underwrite it
Ten months of occupancy, three years of comparable evidence, and a resale assumption of flat real pricing. If the case only works on twelve months and rising rents, it is not a case — it is a hope.
Guaranteed-return schemes are marketing, not underwriting. Ask for three years of actual occupancy data.
References
This article is general information, not investment, tax or legal advice. Rules change — confirm current requirements with qualified counsel before you transact.
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