Every Phuket sales deck eventually lands on the same line: 6-8% yield. Convenient. Clean. Usually incomplete.
The number itself is not the problem. The compression is. One line has to hide management cuts, CAM, furnishing, vacancy, repairs, and the difference between sticker price and actual capital at risk. That is how a brochure ends up looking smarter than the spreadsheet.
Chart 1 — The headline number is usually the optimistic one
| Project | Sales story | Conservative underwriting | Deeper read |
|---|---|---|---|
| Siamese Bangtao | Developer claim: 6-8% | 4.3% net | Full analysis |
| The Title Sierra | 7%+ belongs in the upside case, not the first draft | 5.4% net | Full analysis |
| Angsana Topaz | Brand premium and convenience, not a pure yield play | 4-6% net typical | Review |
The pattern is repetitive. Marketing speaks in upside. Underwriting should start with the conservative line.
Chart 2 — Sticker price is not capital basis
| Reference unit | Public price | Setup / fit-out | More honest capital basis |
|---|---|---|---|
| Siamese Bangtao 1BR | ฿5.50M | ฿350k | ฿5.85M |
| The Title Sierra entry unit | ฿2.87M | ฿250k | ฿3.12M |
A unit does not start producing income on the brochure number. It starts after setup, furnishing, and a little working capital. Buyers who underwrite only the public entry price are flattering the deal before it has done anything to deserve it.
Chart 3 — Occupancy does the damage quietly
This is why the brochure can look fine until the first soft season. A modest occupancy miss does not kill the project. It kills the pretty version of the story.
Chart 4 — Where gross rent disappears before it becomes net rent
| Line item | Typical drag | What buyers forget |
|---|---|---|
| Management / leasing | -20% to -25% | Somebody has to run pricing, enquiries, cleaning, and turnover |
| CAM and fixed building costs | -5% to -10% | Amenity-heavy buildings pay for their own theatre |
| Vacancy, repairs, furnishing bleed | -10% to -15% | The line most sales decks politely blur |
| Net investor reality | roughly 50-60% of the gross story | That is why 4-6% net keeps reappearing. |
If the sales room keeps repeating gross, compare it against our Siamese Bangtao numbers, our Title Sierra model, and our Angsana Topaz review. The language changes. The arithmetic usually does not.
Quick buyer questions
Why do Phuket sales decks keep showing 6-8%?
Because 6-8% is the clean, optimistic version of the story. It usually assumes strong occupancy, strong nightly rates, and gross rent before the full drag of management, CAM, vacancy, and fit-out is felt.
What is the most useful number to underwrite first?
For mid-market Phuket condos, the safer first line is usually around 4% to 5.5% net, not the highest number in the brochure.
Does a branded residence automatically deserve a higher yield assumption?
No. Branding can support room rate and convenience, but the higher capital base often compresses yield percentage.
What should buyers compare before wiring a deposit?
Compare the real capital basis, management drag, CAM, furnishing budget, occupancy assumptions, and whether the deal still works when those inputs are less friendly.