Phuket Property Investment
What yields do Phuket resort properties realistically deliver?
The honest answer, first. The reasoning, second. The trade-offs, last.
The Answer
Branded Phuket resort residences with tier-1 operators realistically deliver 6–8% gross and 5–7% net to investor after operator share, FF&E, sinking fund, vacancy, FX and withholding. Unbranded inventory and off-beach product typically land 1–2% lower on both gross and net.
Why this is the answer.
Branded resort residences benefit from operator distribution networks, brand-driven ADR premiums and pooled occupancy that smooths individual-unit variability. Net 5–7% is the realistic institutional benchmark for tier-1 product in good sub-markets.
Unbranded inventory in the same sub-market carries lower ADR, lower distribution power and lumpier occupancy. Net 3–5% is more typical, with greater dispersion across owners.
Off-beach product (inland Bang Tao, central Phuket) trades the beach-driven demand premium for lower price points. Yields can be similar in percentage terms but absolute cashflow per unit is lower.
What to do about it.
- Branded tier-1 resort residences are the cashflow-yield sweet spot.
- Always underwrite net, never gross.
- Verify cohort data, not single-project marketing material.
What can break the thesis.
- Operator-quality variation produces wide outcome dispersion at apparent same yield.
- Pool dilution from new building releases can compress per-unit distribution.
- Tourism shocks compress yields more than capital values in cycle downturns.
Your Next Step
Review Phuket Property Investment and Rental Cashflow Investors Phuket to understand the market's income and growth drivers.
Recommended Research
Related Pillar
Phuket Property Investment →Related Frameworks
Related Location Pages
Related Questions
Run the numbers
Model this against your own numbers
Stress-test yield, appreciation and FX in the Core Investments calculator.
Open the calculatorIllustrative scenarios using calculator default assumptions. Outcomes vary with market conditions, operator performance and investor inputs.