Thailand Property Investment: Calculating Apartment Rental Yield on a Real Example
We are always ready to calculate the investment potential of an apartment or house — both at the construction stage and for completed properties. Below is a clear example to help you understand how rental income and capital growth are formed.
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Initial Data
Let’s consider an apartment in Beverly Hills Pattaya:
Type: 1-bedroom
Size: 38 sqm
View: pool view
Starting price: 4,000,000 THB
Investment period: 3 years
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Property Value Growth
Let’s assume a moderate growth of 6% per year.
After 3 years:
Year 1: 4,000,000 → 4,240,000
Year 2: 4,240,000 → 4,494,400
Year 3: 4,494,400 → 4,764,064 THB
Total growth:
+764,064 THB
≈ +19.1% over 3 years
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Rental Income
Let’s consider two main rental strategies:
1. Long-term rental (annual contract)
An annual lease agreement is generally the most stable option, as it minimizes vacancy periods. This ensures consistent and predictable income without the need to frequently search for new tenants.
Rental price: 25,000 THB / month
Total: 300,000 THB / year
2. Short-term rental (monthly rental strategy)
Thailand is a popular tourist destination, which directly impacts the rental market. There are typically two seasons:
— High season (October–February): higher demand, higher prices
— Low season (March–September): lower demand, reduced rental rates
High season (5 months):
40,000 THB × 5 = 200,000 THB
Low season (7 months):
Average 26,500 THB × 7 = 185,500 THB
Total potential income:
385,500 THB / year
Considering 80% occupancy:
385,500 × 0.8 = 308,400 THB / year
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Expenses
Maintenance: 20,000 THB / year
Net income:
308,400 – 20,000 = 288,400 THB / year
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Yield
Annual yield based on the initial property price (4,000,000 THB):
Rental yield: ≈ 7.2%
Capital appreciation: ≈ 6% per year
Total return: ~13–14% annually
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Total Result Over 3 Years
Rental income:
288,400 × 3 = 865,200 THB
Property value growth:
+764,064 THB
Total profit:
≈ 1,629,264 THB over 3 years
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Conclusion
Even with conservative assumptions:
— property provides stable cash flow
— combined with capital appreciation
— total returns are comparable to high-risk investments, but with significantly lower risk
The key factor is choosing the right project, location, and rental strategy.
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Important
Each property is unique:
— different occupancy rates
— different growth potential
— different rental strategies
That’s why we always prepare a personalized calculation based on your budget, goals, and investment timeline.
If you’d like, we can calculate 2–3 options for you and show where the best entry point in the market is right now. Leave a request and we will get back to you shortly.
