Hongkongers are increasingly looking to Thailand for property investments, drawn by the kingdom’s relaxed lifestyle, scenic beaches, and most importantly, its relatively affordable real estate. Property prices in Hong Kong remain among the highest in the world, resulting in many residents of the SAR seeking alternatives that offer better value and quality of life. Popular holiday destination Phuket, in particular, is emerging as a real estate hotspot with its spacious homes, lower living costs, and strong rental market.
Thailand’s Property Market is up to 85% Cheaper Than Hong Kong
Hong Kong remains one of Asia’s priciest cities, with everyday expenses and housing costs ranking among the highest globally. The city’s rental market continues to outpace most of the region, making homeownership increasingly unattainable for many residents. The territory also emerged as the most expensive city in the world for expatriates for the third year running, according to Mercer’s Cost of Living City Ranking for 2024.
Given these factors, it is hardly surprising that investors and expatriates from Hong Kong prefer Thailand’s residential property market. Even in the vibrant capital of Bangkok, real estate remains far more affordable, with prices per square metre at about one-fifth of those in the territory. According to data from Numbeo, Phuket is an even more attractive investment option as it costs 85% less per square foot to buy a flat in the island’s commercial centre than in Hong Kong’s CBD.
Phuket’s Real Estate Boom: Investment and Holiday Trends
The Phuket holiday home market has seen massive growth in recent years, especially in the wake of the Covid-19 pandemic. According to global real estate services firm CBRE, condominium sales at the end of 2024 skyrocketed by over 201% compared to the previous year, and villa sales shot up by 148%. This growth is largely driven by strong demand from investors looking to cash in on the province’s booming tourism and property sectors. Whether you’re renting a villa in Phuket for your summer holiday or exploring investment opportunities, the market remains highly dynamic.
CBRE also revealed that 75% of vacation homes were bought for investment, and the remaining 25% are for owner occupancy. The island’s rental residential market has also shown impressive returns, with annual yields surpassing 10% in 2024. Prime areas like Bang Tao and near Laguna Phuket — where demand is particularly high thanks to foreign buyers looking for vacation getaways and business professionals relocating to the island — offer even higher rental income. Key developments like new highways and luxury tourism will also play a major part in enhancing the coastal paradise’s attractiveness to high-net-worth individuals.
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