Phuket Villa Investment: Is Buying a Pool Villa Better Than a Condo?

It is the question investors ask us most: with about ฿10 million to spend in Phuket, is a pool villa or a condo the better investment?

Rather than answer in general terms, we took two real properties from our current sale list at almost the same price and ran the numbers using current asking rents from our own rental listings.

The two properties

Purchase price: what ฿10 million buys

At this budget the difference in what you get is stark. The condo is 65 square metres, about ฿154,000 per square metre, in Phuket's busiest beach town. The villa gives you three bedrooms, a private pool and 276 square metres of land in an area popular with families, close to the British International School.

Purchase costs are similar in percentage terms: a 2% transfer fee on the appraised value (often split with the seller), plus lease registration fees if you take the villa's land on a lease. Our buying guide for foreigners has the full breakdown.

Land ownership: the biggest difference

The condo can be owned freehold in your own name, provided it sits within the building's 49% foreign quota. That ownership is simple, permanent, and easy to sell or pass on.

The villa comes with land, which is the scarce part of any property on an island. But a foreigner cannot own that land. The usual structure is a registered 30-year land lease plus ownership of the house, which means the remaining lease term shortens every year unless renewals are properly secured. Factor that into what the villa is really worth to you, and to the next buyer.

Rental income: what comparable properties rent for

For the worked example we assume ฿45,000 a month for the condo, the top of the Patong condo range on our books and reasonable for a top-floor two-bedroom, and ฿85,000 a month for the villa. Koh Kaew rentals on our books top out at ฿100,000, so ฿85,000 is realistic for a three-bedroom pool villa there.

Operating costs and maintenance

• Condo: common area fees cover the building, lifts, shared facilities and security. We assume ฿50 per square metre per month. You maintain only the interior.
• Villa: you pay for everything the condo's fees would cover: pool, garden, roof, air-conditioning servicing, pest control, and repairs after the rainy season. We assume ฿6,000 a month for pool and garden service, ฿2,000 a month in estate fees, and ฿100,000 a year for repairs, maintenance and insurance.
• Both: on a long-term lease the tenant normally pays electricity and water.

ROI: the numbers side by side

On income, the villa wins clearly. But look at it one more way. If you hold the villa on a 30-year lease and assume nothing is left of the lease's value at the end, you would need to set aside about ฿363,000 a year (฿10.9 million ÷ 30) to get your money back. Take that off and the villa's return falls to about 3.4%, below the condo's 4.3%. How the villa is held changes the answer.

Rental demand: long-term vs holiday

Long-term tenants in Phuket's villa market are mostly families, and they want three or four bedrooms, a private pool and a manageable school run. Three-bedroom pool villas are the biggest single group in our luxury rental listings. Condos attract singles, couples and people working on the island, at lower rents and with more competing units.

Holiday rentals can earn more per night, but under Thailand's Hotel Act any rental of less than 30 days needs a hotel licence, villa or condo. Phuket stepped up enforcement against unlicensed daily condo rentals in 2026. Only count on holiday income if the property or its rental programme is properly licensed.

Capital appreciation

Nobody can promise appreciation, and we will not pretend to. What the data does show:

• Phuket residential sales rose more than 45% in the first half of 2026 compared with the same period in 2025, according to CBRE (August 2026).
• In 2025, Knight Frank Thailand recorded 4,455 new condo sales and 631 new villa sales in Phuket (Positioning, June 2026). Villa sales grew 12.9% on the year; condo sales fell 24.8% from roughly 5,900 in 2024. Condos still sold about seven times as many units.

Over the long run, land is what tends to hold value on an island with limited space. That favours the villa, as long as your hold on the land is secure.

Resale potential

• Condo: far more buyers at lower price points, which is why condos sell in much higher volume. A freehold unit within the foreign quota can be sold to another foreign buyer.
• Villa: fewer, wealthier buyers, so a sale can take longer. On a leasehold villa, the years left on the lease matter to every buyer who comes after you.

So which is the better investment?

• Choose the pool villa if you want the higher rental income, strong family-tenant demand and exposure to land, and you are comfortable with how the land is held.
• Choose the condo if you want simple freehold ownership in your own name, low maintenance and an easier resale, and you accept a lower yield.
• Either way, confirm the tenure, the rental licensing and the real running costs before you buy, not after.

For prices area by area, see Phuket Property Prices in 2026. For which areas rent best, see Best Areas to Buy Property in Phuket.

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Looking for an investment property in Phuket? Contact K. Thanya for current villas and investment opportunities.