Property Prices in Southern Thailand Rise by 5.48%: What It Means for Buyers and Investors
Property Prices in Southern Thailand Rise by 5.48%
In short. According to the Bank of Thailand, property prices in the southern regions of the country — Phuket, Samui, Krabi — increased by 5.48% over the last quarter. This is one of the highest growth rates in the country. Southern resorts are becoming a magnet for investors: beachfront land is limited, tourism is expanding, and rental demand exceeds supply. For buyers, this is a clear signal: seaside property is appreciating faster than the general market and delivers double benefits — rental income plus capital growth.
Context: What the Statistics Show
The Bank of Thailand regularly publishes a housing price index. In the latest report, the nationwide growth rate was moderate, but the South stood out with +5.48% in just one quarter. For comparison: northern regions saw a 1–2% increase, while Bangkok remained almost flat.
Southern Thailand is not only Phuket but also Krabi, Samui, and smaller resort towns and islands. Here, the amount of beachfront land is limited, while investment appeal is very high. That’s why even local demand fluctuations barely affect the trend: the South has been consistently appreciating faster.
Several factors are driving the growth:
Southern Thailand is not only Phuket but also Krabi, Samui, and smaller resort towns and islands. Here, the amount of beachfront land is limited, while investment appeal is very high. That’s why even local demand fluctuations barely affect the trend: the South has been consistently appreciating faster.
Several factors are driving the growth:
- Tourism flow: in 2024, Thailand welcomed more than 30 million visitors, with even higher numbers expected in 2025.
- Rental demand: daily rental rates in Phuket and Samui remain among the highest in the country.
- Limited land supply: new projects are being launched, but available beachfront plots are running out.
In Simple Terms: What This Means for Buyers
If we put it without economic jargon, the situation looks like this:
For buyers, this means: the longer you wait, the more expensive the market entry becomes. For investors, it’s confirmation that southern resorts provide both capital appreciation and rental income.
- New projects rise in price quickly. Developers launch condos at one price, but within 12–18 months by completion, prices are already 10–15% higher.
- Resale properties catch up. Owners of condos and villas on the secondary market follow the trend and raise prices as well.
- Rent drives appreciation. Tourists are willing to pay 1,800–2,200 THB per night for a seaside studio in high season. As rental yields increase, so do purchase prices.
For buyers, this means: the longer you wait, the more expensive the market entry becomes. For investors, it’s confirmation that southern resorts provide both capital appreciation and rental income.
Condo in Cherngtalay (Phuket), 35 m² studio
- Launch price in 2023: 3.9 million THB
- Average price in spring 2025: 4.6 million THB
- Growth in two years: ~18%, in line with the Bank of Thailand’s index.
If rented out short-term:
- High season (5 months): 1,900 THB/night at 70% occupancy → ~200,000 THB/month.
- Low season (7 months): 1,200 THB/night at 50% occupancy → ~54,000 THB/month.
Annual gross income: ~1.2–1.3 million THB.
After management (20%) and taxes, net yield comes to 7–9% per year. Adding capital growth of 5–6% annually, the total return reaches 12–14%.
FAQ
Why is the South growing faster?
Because beachfront land is scarce, while demand from tourists and expats remains strong. Each new project comes to market at a higher price than the previous one.
Should I expect prices to drop?
Historically, southern resorts have almost never corrected downward. Even in crisis years, growth slowed but didn’t go negative.
Which locations are most promising?
In Phuket — Bang Tao, Rawai, Kata; in Samui — Chaweng and Lamai; in Krabi — areas with direct beach access.
What is more profitable to buy: a condo or a villa?
A condo is cheaper at entry and pays off faster thanks to short-term rentals. A villa delivers stronger capital growth, especially if it comes with land near the beach.
Can foreigners buy property?
Yes. Every project offers a certain share of units under freehold, available to foreigners. We ensure legal transparency of the transaction and provide full support.
Because beachfront land is scarce, while demand from tourists and expats remains strong. Each new project comes to market at a higher price than the previous one.
Should I expect prices to drop?
Historically, southern resorts have almost never corrected downward. Even in crisis years, growth slowed but didn’t go negative.
Which locations are most promising?
In Phuket — Bang Tao, Rawai, Kata; in Samui — Chaweng and Lamai; in Krabi — areas with direct beach access.
What is more profitable to buy: a condo or a villa?
A condo is cheaper at entry and pays off faster thanks to short-term rentals. A villa delivers stronger capital growth, especially if it comes with land near the beach.
Can foreigners buy property?
Yes. Every project offers a certain share of units under freehold, available to foreigners. We ensure legal transparency of the transaction and provide full support.
Conclusion
The 5.48% quarterly price growth in Southern Thailand confirms that resort regions remain the driving force of the property market. For investors, this means the opportunity to earn 7–9% from rentals plus 5–6% from capital appreciation. For buyers, it’s a signal that postponing the decision will make entering the market more expensive.