By Hero Realtor · Updated 9 October 2026
Rental yield is one of the quickest ways to compare condos as investments. This guide explains how to calculate it, which areas tend to offer better returns, and what costs can quietly eat into your income, helping you assess a unit before buying. Figures are indicative market ranges as of October 2026.
What is rental yield, and how do you calculate it?
Gross yield = (monthly rent × 12) ÷ purchase price × 100. For example, a THB 10,000,000 condo rented at THB 18,000 a month generates THB 216,000 in annual rent, equivalent to a 2.16% gross yield.
Net yield = (annual rent − annual operating costs) ÷ total purchase cost × 100. Net yield provides a more realistic picture of the income you retain after expenses.
- Estimate realistic rent using comparable listings in the same building or along the same BTS/MRT line.
- Add transfer fees and taxes to the purchase price (use the property transfer tax calculator and read our guide to transfer fees and taxes).
- Deduct annual costs, including common fees, vacancy, agent fees and repairs.
- Divide the remaining income by the total purchase cost. If you plan to borrow, test the figures using the mortgage calculator.
What is a good rental yield for a Bangkok condo by area?
| Area | Indicative gross yield | Profile |
|---|---|---|
| Prime Sukhumvit (Phrom Phong, Thonglor, Asok) | 3.5–5% | High prices, strong expat demand and relatively low vacancy. See condos for rent at Phrom Phong. |
| On Nut, Udomsuk, Bang Na | 5–6.5% | Lower entry prices and steady demand from working tenants. See condos near Sukhumvit 77 On Nut. |
| Rama 9 and Phetchaburi (MRT) | 5–7% | Office-driven rental demand and relatively new developments at moderate prices. |
| Ratchada and Lat Phrao (MRT) | 4.5–6% | Convenient transport links and a broad pool of potential tenants. |
| Sathon and Silom | 4–5.5% | Demand from CBD professionals and corporate tenants. |
These indicative ranges are based on published 2026 market surveys. Actual returns vary considerably by building, unit condition and purchase price, so check current rental and sale listings before investing.
Value-oriented investors can start with affordable Bangkok condo rentals to see what rents lower-priced units may command.
How gross yield becomes net yield: a worked example
| Item (35 sqm condo, THB 10,000,000) | THB per year |
|---|---|
| Rent (18,000 × 12) | 216,000 |
| Common fee (assumed 50 THB/sqm/month) | −21,000 |
| Vacancy (1 month) | −18,000 |
| Agent fee (1 month's rent, new tenant) | −18,000 |
| Repairs and upkeep | −6,000 |
| Net income / net yield | 153,000 / about 1.53% |
Illustrative assumptions only. The example excludes transfer fees, other acquisition costs, income tax and mortgage interest. The net yield is calculated using the THB 10,000,000 purchase price as the denominator; including acquisition costs would reduce it further. The assumed rent is unchanged from the example's original figures and may not represent the achievable rent for a THB 10 million condo.
What reduces condo rental yield in Bangkok?
- Vacancy: One empty month reduces potential annual rent by about 8.3% if the property would otherwise be occupied for all 12 months.
- Common fees and sinking fund: These are generally charged based on unit area and may be payable whether or not the condo is rented out.
- Agent fees and re-letting costs: The owner usually pays the agent when finding a new tenant. See our landlord's guide to renting out Bangkok condos.
- Compliance: Landlords must comply with applicable immigration reporting requirements for foreign tenants, including TM30 notification where required. Read the TM30 guide.
- Overpricing: An unrealistic asking rent can lead to longer vacancy periods. A free property valuation can help establish a realistic asking price.
What should foreign investors check before buying to rent out?
Foreign buyers can own condominium units freehold within the building's 49% foreign ownership quota, subject to applicable legal requirements. Purchase funds generally need to be remitted from abroad in foreign currency, with the appropriate bank documentation. Details are in our guide to condo ownership for foreigners. If you are comparing a condo with a house, also read leasehold vs freehold.
Is it better to rent or buy a condo in Bangkok?
Buying may make sense if the expected net rental yield and potential capital appreciation justify the purchase price and compare favourably with alternative uses of your money. Our comparison of renting vs buying a condo in Bangkok walks through the trade-offs.
Frequently asked questions
What is a good rental yield for a condo in Bangkok?
A gross yield of around 5–6% can be a solid result for central Bangkok, although the right benchmark depends on the property and its risks. Yields above 6% may reflect an outer location, an older building or greater vacancy risk. Yields below 4% are common in prime areas, where investors may also be counting on capital appreciation.
What is the difference between gross and net rental yield?
Gross yield is annual rent divided by the purchase price. Net yield deducts running costs such as common fees, vacancy, agent fees and repairs first, so it is usually lower. The difference depends on the property's expenses and occupancy rate.
Which Bangkok area has the highest condo rental yield?
Areas with lower purchase prices relative to rent, such as Rama 9 and Phetchaburi on the MRT and On Nut, Udomsuk and Bang Na on the BTS, often offer higher yields than prime Sukhumvit. However, the best result depends on the individual building, unit and purchase price, so compare actual listings.
Can foreigners buy a condo in Thailand to rent out?
Yes. Foreigners can own condominium units freehold within a building's 49% foreign ownership quota, subject to legal requirements, and can rent them out. Purchase funds generally need to be remitted from abroad in foreign currency with appropriate documentation. Landlords must also comply with applicable immigration reporting requirements, including TM30 notification where required.
Is Airbnb-style short-term renting better than a long-term lease?
Not necessarily. Rentals of less than 30 days are generally restricted in condo buildings without the required hotel licence, and many condominium juristic persons prohibit them. A 12-month lease with a reliable tenant is often a more straightforward, lower-risk approach, subject to the applicable rules and the property's regulations.
