Phuket: Studio vs 1BR vs 2BR – Which Unit Size Offers the Best Risk/Return Ratio?

If You Choose the Wrong Unit Size, Location Won't Save Your Returns

When investing in apartments and condos in Phuket, unit size is one of the most underestimated decisions. Investors focus on project names, renderings, rental promises, or a "good address," while unit size actually determines liquidity, rental flexibility, and resilience during market corrections.

Studio, 1BR, and 2BR are three completely different investment products, even when located in the same building. They differ not only in purchase price but primarily in:

• tenant profile,
• demand seasonality,
• operational cost levels,
• resale ease on the secondary market.

This article doesn't answer "what looks best," but rather which unit size offers the best risk/return ratio with realistic ROI around ~8%, not the brochure promises of 12–15%.

Phuket in 30 Seconds: The Essential Fact

Phuket isn't a single rental market, and one unit size doesn't fit all strategies.

What works for short-term rentals during high season often doesn't hold up for mid-term rentals and secondary market resale. That's why unit size must be analyzed over a 3–7 year cycle, not just the first 6 months.

Starting Point for Comparison: Price per m² (2025/2026)

Based on market data (non-branded + branded projects, 2023–2025):

Average Price Ranges (Phuket)

• Studio (25–30 m²):
• 160,000 – 190,000 THB/m²
• 1BR (35–45 m²):
• 140,000 – 175,000 THB/m²
• 2BR (55–75 m²):
• 130,000 – 165,000 THB/m²

Sources:

https://www.cbre.co.th/insights

https://www.knightfrank.co.th/research

At this stage, the first pattern emerges: the smaller the unit, the higher the price per m². This has enormous implications for ROI.

Studio – Low Entry Barrier, Expensive per Meter, High Competition

Typical Investment Parameters

• Size: 25–30 m²
• Purchase price: 4.2–5.5 million THB
• Price per m²: 170–190k THB
• Rental: primarily short-term

Income (Realistic)

• High season:
• 2,200–2,800 THB / night
• Low + shoulder:
• 1,400–1,800 THB / night

Typical Annual Costs

• Management (20%): ~60,000–75,000 THB
• Maintenance fee:
• 60–80 THB/m² → 18,000–24,000 THB
• Utilities + service: 25,000–30,000 THB
• Reserve for wear: 15,000–20,000 THB

Negative Factors

• highest competition (most similar units),
• greatest pricing pressure,
• low flexibility (weak mid-term demand),
• more difficult resale during demand decline.

Studios are most vulnerable to market corrections.

ROI may look good in a strong year, but return stability is low.

1BR – The Sweet Spot of Phuket's Market

Typical Investment Parameters

• Size: 38–45 m²
• Purchase price: 5.8–7.8 million THB
• Price per m²: 145–175k THB
• Rental: short + mid-term

Income (Averaged)

• High season:
• 3,000–3,600 THB / night
• Low + shoulder:
• 1,900–2,400 THB / night

Typical Annual Costs

• Management (18–20%): 80,000–95,000 THB
• Maintenance fee:
• 30,000–40,000 THB
• Utilities + service: 35,000–45,000 THB
• Reserve for wear: 20,000–30,000 THB

Why 1BR Wins on Liquidity

• largest tenant pool (couples, digital nomads, relocations),
• suitable for 1–3 month rentals,
• easiest resale on secondary market,
• lower risk of "price war" than studios.

This is the unit size where it's easiest to defend ~7–9% net ROI, provided the entry price is reasonable.

The Most Common Myth About Phuket: "Studios Always Rent Out"

Yes — they do rent out.

The question is: at what price, for how long, and is there anything left after costs.

In practice:

• studios win only with very low entry prices,
• 1BRs win in normal markets,
• and 2BRs… require separate analysis.

2BR – Higher Entry Threshold, Lower Demand, Greater Selectivity

Typical Investment Parameters

• Size: 60–75 m²
• Purchase price: 8.5–12.5 million THB
• Price per m²: 130,000–165,000 THB
• Rental model: families, longer stays, relocations

On paper, 2BRs look attractive: lower price per m², larger space, "better product." In practice, however, this is the most selective unit size, requiring precise location and realistic calculations.

Income (Realistic Market Ranges)

• High season:
• 4,200–5,200 THB / night
• Shoulder + low season:
• 2,600–3,200 THB / night

This isn't double the 1BR rate. The market doesn't scale pricing linearly with size.

Typical Annual Costs

• Management (18–22%): 110,000–150,000 THB
• Maintenance fee (70–90 THB/m²):
• 50,000–65,000 THB
• Utilities (AC, larger space):
• 50,000–65,000 THB
• Reserve for wear/refresh:
• 35,000–45,000 THB

Negative Factors

• smaller tenant pool,
• greater seasonality,
• higher fixed costs,
• slower secondary market resale.

2BRs work as investments only in prime locations (near beaches, infrastructure, international schools). Otherwise, ROI "falls apart" due to costs and vacancies.

Unit Size Comparison – Numbers Without Marketing

Entry Price vs Flexibility

• Studio: low entry barrier, low flexibility
• 1BR: medium entry barrier, highest flexibility
• 2BR: high entry barrier, low flexibility

Rental Stability

• Studio: high competition, pricing pressure
• 1BR: broadest year-round demand
• 2BR: strong seasonality

Net ROI Simulation (Realistic, Not Brochure Numbers)

Studio

• Capital: 5.0 million THB
• Gross income: 520,000 THB
• Costs: ~190,000 THB
• Net: 330,000 THB
• ROI: ~6.6%

1BR

• Capital: 7.0 million THB
• Gross income: 780,000 THB
• Costs: ~260,000 THB
• Net: 520,000 THB
• ROI: ~7.4%–8.1%

2BR

• Capital: 10.5 million THB
• Gross income: 920,000 THB
• Costs: ~380,000 THB
• Net: 540,000 THB
• ROI: ~5.1%

The conclusion is clear:

The best risk/return ratio comes from a well-purchased 1BR, not the largest unit.

The Most Common Investor Mistake: Thinking "Bigger = Better"

Phuket's rental market doesn't reward size. It rewards:

• functionality,
• total price,
• rental flexibility,
• exit ease.

That's why the most liquid investments look "ordinary", not spectacular.

3 Facts You Must Know: Phuket (Unit Size)

Fact 1: Price per m² tells you nothing about ROI

Total price and fixed costs are what matter.

Fact 2: Highest demand is for 1BRs

This size captures both short-term and mid-term markets.

Fact 3: 2BRs are niche products

They only work where demand is structural, not seasonal.

Investor Checklist: Unit Size in Phuket (5 Points)

1. Does the unit size match real demand in this location?
2. Does the price per m² mask an excessively high total price?
3. Do fixed costs "eat up" returns during low season?
4. Can the property hold its own in 1–3 month rentals?
5. Will you be able to sell it without lowering the price?

If your answer to any question is "I don't know" — this isn't an investment yet.

Summary: Where's the Best Risk/Return Ratio

In Phuket:

• studio = low barrier, high competition risk,
• 1BR = best mathematics, liquidity, and control,
• 2BR = makes sense only in top locations.

That's why at Varsovia Estate we most often recommend 1BRs as portfolio foundations — because this is the unit size that doesn't need a perfect market to defend itself.

Sources

• https://www.cbre.co.th/insights
• https://www.knightfrank.co.th/research
• https://www.bangkokpost.com/business/real-estate
• https://www.tatnews.org/
• https://www.statista.com/outlook/real-estate/thailand