# Rental yields in Thailand: gross, net and what erodes them

Source: https://www.thailandpropertyinvestor.com/guides/rental-yields-in-thailand
Updated: 2026-11-14
Publisher: Thailand Property Investor (Omnia Capital Group)

## The short answer

Luxury condominiums in central Bangkok earned gross yields of 5.3% to 5.4% between late 2025 and mid 2026. The resort markets have no reliable yield record, and the figures in sales material are projections. Net yield is well below gross once vacancy, a management share of roughly 20% to 40%, common-area fees and tax are deducted. On the Andaman coast income is also sharply seasonal.

## Key points

- Gross yield is annual rent divided by price, and net yield deducts vacancy, management, building fees, tax and purchase costs.
- Luxury condominiums in central Bangkok earned gross yields of 5.3% in the fourth quarter of 2025 and 5.4% in the second quarter of 2026.
- Phuket, Koh Samui and Pattaya have no yield record built on real lettings, so a resort yield figure is almost always a developer's or agent's projection.
- Phuket hotel revenue ran at 196 against an annual average of 100 in January 2026 and at 41 in June.
- Management takes roughly 15% to 25% of rent with an independent agent and 30% to 40% or more in a pooled hotel programme.
- Phuket condominiums sold on projected rental returns lose their footing if those returns are not delivered, and the island has a large pipeline competing for the same tenants.

Treat any single yield figure for Thailand with caution. The firmest is for luxury condominiums in central Bangkok: 5.3% to 5.4% gross. The resort markets have no equivalent record, and the numbers in brochures are projections. What a buyer keeps is the net yield, and the distance between gross and net is wider in Thailand's resorts than most buyers expect.

## Gross and net: the two numbers

[Gross yield](https://www.thailandpropertyinvestor.com/glossary/gross-yield) is the annual rent divided by the purchase price. It is the figure quoted in advertising because it is the largest.

[Net yield](https://www.thailandpropertyinvestor.com/glossary/net-yield) is what remains after the costs of earning the rent, divided by the full cost of buying, including fees and furniture. It is the only figure worth comparing with a bank deposit or a bond.

Neither includes any change in the value of the property, which may be positive or negative.

## What the numbers are

| Market | Indicator | Period |
|---|---|---|
| Bangkok, central, luxury condominiums | Gross yield 5.3%, then 5.4% | Q4 2025 and Q2 2026 |
| Phuket | No reliable yield record. Hotel occupancy between 67.7% and 76.8%, depending on the hotels counted | First half of 2026 |
| Koh Samui | No reliable yield record. Rental villa occupancy 71.5%, average nightly rate THB 13,012 | Q1 2025 |
| Pattaya, Hua Hin, Chiang Mai | Estimates only | |

Three cautions apply to the table.

First, the Bangkok figure is for luxury stock in the centre, and in the same period rents were flat and capital values were still drifting down. A yield that rises because prices fall is not good news for an existing owner.

Second, the Phuket occupancy range is for hotels. A privately owned condominium or villa competes with those hotels and cannot be assumed to match them, particularly outside a managed programme.

Third, the lack of a yield record for the resorts tells you something. Where you see "7%" or "8%" in a brochure, it is the seller's projection. Agents in Phuket quote 8% to 12% gross, and the careful ones add that the figure is not a guarantee.

## Seasonality on the Andaman coast

Resort income arrives unevenly. In the first half of 2026, January and February together brought 43.4% of Phuket's air arrivals. June brought 10.8%. Measured against an annual average of 100, Phuket hotel revenue stood at 196 in January and 41 in June. An annual average makes resort income look steadier than it is.

Hotel trading on the island follows the same pattern: a high season of roughly five months, with occupancy about a third lower and room rates about half in the low period.

For an owner this has three consequences. Most of the year's income is earned between about November and April. Owner use in those months costs far more in lost rent than use in the wet season. And a unit that must cover a loan or a fixed fee every month needs reserves for the months when it earns little. Our [seasons tool](https://www.thailandpropertyinvestor.com/tools/seasons) and the page on [climate and seasons](https://www.thailandpropertyinvestor.com/living/climate-and-seasons) show the pattern by coast: the Gulf islands, including [Koh Samui](https://www.thailandpropertyinvestor.com/areas/koh-samui), run on a different calendar from [Phuket](https://www.thailandpropertyinvestor.com/areas/phuket).

## What erodes the yield

**Vacancy.** Even a well-let Bangkok unit is empty between tenancies. A resort unit is empty for much of the low season.

**Management.** An independent letting agent in Phuket typically takes 15% to 25% of rental revenue. A pooled programme run by a hotel operator keeps about 30% to 40%. Older Phuket hotel-residence contracts were commonly written as a 50:50 split, with commissions and reserves deducted before the owner's half was paid. Check whether the share is taken from gross revenue or from revenue after costs. See [hotel-managed and rental pool schemes](https://www.thailandpropertyinvestor.com/guides/hotel-managed-and-rental-pool-schemes).

**Common-area fee.** The [common-area fee](https://www.thailandpropertyinvestor.com/glossary/common-area-fee) is charged per square metre every month, let or empty. Branded and resort buildings with extensive facilities charge more.

**Tax.** Rent paid from Thailand to a non-resident owner is subject to 15% withholding. A resident pays progressive rates after a 30% standard deduction. See [rental income and tax](https://www.thailandpropertyinvestor.com/guides/rental-income-and-tax).

**Furniture and wear.** Holiday lets consume furniture, linen and air conditioning quickly. Many programmes require a reserve.

**Legal limits on letting.** Stays of under 30 days need a hotel licence. A projection built on nightly lets in a building that cannot lawfully offer them is not a projection you can rely on. See [short-term rental rules](https://www.thailandpropertyinvestor.com/guides/short-term-rental-rules).

### An illustration

The table below is arithmetic, not market data. Every input is an assumption chosen to show how the deductions stack up on a resort condominium bought for THB 10,000,000 by a non-resident.

| Step | Assumption | THB |
|---|---|---|
| Advertised gross rent | 7% of price at full occupancy | 700,000 |
| After vacancy | 70% occupancy | 490,000 |
| After management | 30% share to the operator | 343,000 |
| After common-area fee | 60 sqm at THB 80 per sqm a month | 285,400 |
| After withholding tax | 15% of the THB 343,000 paid to the owner | 233,950 |
| After land and building tax | 0.02% of appraised value | 231,950 |

The advertised 7% has become about 2.3% of the price, before furniture, insurance and purchase costs. Change any assumption and the answer moves, which is the point: ask for the real inputs and run them through the [rental yield calculator](https://www.thailandpropertyinvestor.com/tools/rental-yield-calculator).

## Why to distrust headline figures

- **They are usually gross.** Costs are left out or mentioned in a footnote.
- **They assume the high season lasts all year.** A January rate multiplied by 365 nights is not a forecast.
- **They may assume lets the law does not allow.**
- **They are sometimes backed by a [rental guarantee](https://www.thailandpropertyinvestor.com/glossary/rental-guarantee)** that runs for a fixed term and may be reflected in the price you pay. A guarantee tells you what the developer will pay, not what the market will.
- **They ignore supply.** Phuket had a future pipeline of 28,211 condominium units in mid 2026, and many foreign buyers were purchasing on projected rental returns without visiting. That model will not hold if the returns are not delivered. Koh Samui shows the mechanism: nightly rates fell 11% in a year in which rental villa supply rose 34%.

## How to test a yield claim

1. Ask whether the figure is gross or net, and net of what.
2. Ask for monthly occupancy and average rate for the last two or three years in the same building, from the operator's records.
3. Identify every deduction between guest payment and owner payment.
4. Confirm that the letting model is lawful for that building.
5. Recalculate on the total cost of purchase, using [property taxes and buying costs](https://www.thailandpropertyinvestor.com/guides/property-taxes-and-buying-costs).
6. Run a weak year: lower occupancy, lower rate, a currency move against you.

Rental income from Thai property is real, and in the right building it is a useful return. It is rarely the figure on the brochure. We do not forecast yields or promise income. Take independent financial advice before you invest.

## Questions

### What is a realistic rental yield in Bangkok?

For luxury condominiums in the centre, about 5.3% to 5.4% gross, before costs. Deduct vacancy between tenancies, an agent's fee, the common-area fee and income tax and the net figure is well below that. Yields vary by building and by the price you pay, so calculate each unit on its actual rent.

### Are the 7% or 8% yields advertised in Phuket real?

They are projections, not records. They are usually gross figures that assume high occupancy at high-season rates, and there is no independent record to test them against. Ask for the audited operating history of the same building or a comparable one, month by month, and work out the net figure yourself.

### How seasonal is rental income in Phuket?

Very. January and February brought 43.4% of the island's air arrivals in the first half of 2026, and June only 10.8%. In the low season hotel occupancy runs about a third lower and room rates about half. An annual average hides months in which a unit may barely cover its costs.

### What costs reduce the yield most?

Management and vacancy, in that order for most resort units. A pooled hotel programme can keep 30% to 40% or more of revenue, and an independent agent 15% to 25%. The common-area fee is fixed whether or not the unit is let. Tax takes 15% of rent for a non-resident owner.

### Should I buy for yield or for capital growth?

Neither can be relied on in isolation. Rents on luxury condominiums in central Bangkok were flat in mid 2026 and capital values were falling, and the resort markets face heavy new supply. Buy a property you would be content to hold through a weak period, at a price supported by comparable sales, and treat rent as one part of the return.

## Sources

- [Real Estate Asia, JLL on Bangkok luxury condominium yields, rents and pipeline (Q2 2026)](https://realestateasia.com/residential/news/bangkok-luxury-condo-supply-pipeline-totals-1900-units-through-2029)
- [Real Estate Asia, JLL on Bangkok luxury residential completions and yields (Q4 2025)](https://realestateasia.com/residential/news/around-1600-luxury-residential-units-be-completed-in-bangkok-in-2026)
- [Knight Frank Thailand, Bangkok and Phuket Hotel Market H1 2026](https://content.knightfrank.com/research/2972/documents/en/bangkok-phuket-hotel-market-h1-2026-12985.pdf)
- [CBRE Thailand, Phuket Overall Figures H1 2026](https://mktgdocs.cbre.com/2299/7b68866d-cef2-42d1-b483-000a7e5f4bd6-357448943/Phuket-Overall-Figures-H1_2026.pdf)
- [C9 Hotelworks, Phuket high and low season hotel rates (STR data), 23 March 2024](https://c9hotelworks.com/news/phukets-high-and-low-season-hotel-rate-fomo-fever)
- [C9 Hotelworks, Koh Samui property market report, 10 June 2025](https://c9hotelworks.com/news/samui-property-market-tops-thb30-million-in-latest-c9-hotelworks-report)
- [C9 Hotelworks, revenue splits in Phuket mixed-use property (Phuket Gazette), 12 June 2010](https://www.c9hotelworks.com/news/in-shade-mixed-use-property)
- [Twins Real Estate, rental management in Phuket (agency guide, fee ranges), updated 6 June 2026](https://realestate-twins.com/en/guide/rental-management-phuket/)
- [Revenue Department, Revenue Code Section 50 (withholding on rent paid to non-residents)](https://www.rd.go.th/english/37749.html)