Phuket Overtakes Bali in Foreign Property Transactions for the First Time

For the first time on record, Phuket has surpassed Bali in total foreign property transaction volume, according to a comparative analysis published in April 2026 by Southeast Asian real estate consultancy Knight Frank Asia-Pacific.

In Q1 2026, foreign buyers transacted $1.82 billion USD worth of property in Phuket, versus $1.09 billion USD in Bali and the broader Badung regency. The gap — 67% in Phuket’s favour — represents a significant inversion of a trend that held for most of the 2015–2022 period, when Bali commanded the larger share of Southeast Asian leisure property investment.

The Numbers Behind the Shift

Market	Q1 2026 Volume	Q1 2025 Volume	YoY Change
Phuket, Thailand	$1.82B	$1.34B	+36%
Bali, Indonesia	$1.09B	$1.18B	-7.6%
Ko Samui, Thailand	$0.34B	$0.28B	+21%

Phuket’s volume growth of 36% year-on-year contrasts sharply with Bali’s 7.6% decline, which analysts attribute to Indonesia’s tightening of foreign property rules and increasing enforcement of zoning restrictions in Canggu and Seminyak.

Why Phuket Is Winning

1. Ownership security Thailand’s Condominium Act allows foreigners to hold Freehold title to up to 49% of a building’s units — a clear, enforceable legal right. In contrast, Bali only offers leasehold (typically 25+25 years) via Hak Pakai arrangements that require Indonesian nominees or foreign-invested company structures, introducing legal risk.

2. Rental yields Average gross rental yields in Phuket reached 8.7% in Q1 2026 (Knight Frank data), versus 6.2% in Bali. Phuket’s year-round tourism season — boosted by Chinese, Russian, and European arrivals — maintains higher occupancy through shoulder months.

3. Infrastructure investment Thailand has committed $4.1 billion to Phuket infrastructure through 2030, including the Phuket Light Rail Transit (LRT) connecting the airport to Chalong, and the ongoing Phuket Smart City programme. No comparable island-wide investment plan exists for Bali.

4. Price entry point The average Phuket condo entry price in Q1 2026 was ฿4.8M (~$134,000 USD), offering a lower minimum investment threshold than comparable Bali villa leases, which typically require $150,000–$200,000 for a 25-year term.

What This Means for Investors

The shift in transaction leadership signals a structural rerating of Phuket’s position in the global leisure property market — not merely a cyclical uptick. International institutional buyers, who previously favoured Bali for its “alternative” positioning, have been directing allocations toward Phuket’s more regulated and liquid market.

For individual investors, the data suggests the window for entry-point pricing is narrowing. Projects launched in 2024–2025 are already 18–25% above initial list prices at resale. The Q2 2026 pipeline includes 14 new launches expected to price at 10–15% premiums over the Q4 2025 average.

Frequently Asked Questions

Has Phuket really surpassed Bali in property investment?

Yes. Q1 2026 data from Knight Frank Asia-Pacific shows Phuket recorded $1.82B in foreign property transactions versus $1.09B in Bali — Phuket's first time leading in total volume.

Why is Phuket more attractive than Bali for foreign buyers?

Phuket offers Freehold ownership for foreigners (up to 49% quota), 8.7% average rental yields, no nominee structures required, and a $4.1B government infrastructure programme through 2030.

What are rental yields in Phuket compared to Bali?

Average gross yields in Phuket reached 8.7% in Q1 2026, significantly above Bali's 6.2%. Phuket's year-round tourism season contributes to higher occupancy rates in shoulder months.

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