Every week, we get a version of the same question. It usually starts: "I'm looking at tropical real estate. Phuket, Bali, or somewhere else?"
The honest answer is that all three markets we hear named most often — Phuket, Bali, and Da Nang — are good markets. They've each grown 30–60% in the last five years. Each has real foreign demand, working infrastructure, and a story that makes sense. None of them is a mistake.
But they are not interchangeable. They serve different buyers, different capital, different timelines. Where they really differ is in what you actually own when you sign — and that single fact is worth more than any yield projection. Below is the comparison we run with clients who haven't yet committed to a country.
The numbers, side by side.
Before we get into nuance, here's how the three markets look from a pure investment standpoint in early 2026:
These aren't academic numbers — they're what we see on our own book and what colleagues in Bali and Vietnam see on theirs. But the table only tells you so much. The real differences live in what you actually own, what you can do with it, and how easily you get out.
What you actually own: the gap is bigger than people think.
This is the section most marketing brochures gloss over and where the largest decisions are made. Foreign ownership rules are not a footnote — they shape every other number in the table above. Yields, exit liquidity, even financing options follow from the underlying legal structure.
Phuket — true freehold for condos
Thailand's Condominium Act allows foreign individuals to own up to 49% of total saleable area in any registered condominium building, on full freehold title. Your name goes on the unit's title document at the Phuket Land Office, no time limit, no annual conditions, no residency requirement. You can sell it, gift it, pass it to children — exactly as you would a freehold apartment in Western Europe or the US. There is no other Southeast Asian market that gives a foreigner this clean a structure on a beachside condo.
For villas and land, the picture is more nuanced. Foreigners cannot own land in their own name, so the standard structure is a registered long-term lease — 30 years at the Phuket Land Office, with two 30-year renewal options (effectively up to 90 years of use). Leasehold villas remain a fully transactable asset, but this is the area where working with a lawyer who structures both the lease and the renewal mechanism correctly really matters. It's where the difference between a properly drafted deal and a quickly written one shows up at resale.
Bali — no freehold for foreigners, ever
Indonesia's Basic Agrarian Law of 1960 reserves freehold (Hak Milik) exclusively for Indonesian citizens. Foreigners cannot, under any structure, hold permanent title to property in Bali. What they can hold are three substitutes: Hak Sewa (leasehold contract, typically 25–30 years with extension clauses), Hak Pakai (a registered Right-to-Use title, requires Indonesian residency, capped at one residential property per family, minimum value around $130–325K depending on region), or HGB (Right to Build, only via a foreign-owned PT PMA company structure, valid up to 80 years).
Most international villa purchases in Bali are leasehold. It works — leases are registered, transferable, and the secondary market is real — but you are buying a contract, not a title. The lease has an expiry date, and the value of the asset declines as that date approaches. Buyers exiting a villa with 12 years left on the lease have a structurally different conversation than buyers exiting with 28 years left.
The 2026 regulatory environment in Bali has also tightened: zoning enforcement (KKPR) on short-term rentals, the March 2026 deadline requiring all Airbnb-style rentals to hold a valid business identification number, and active prosecution of illegal "nominee" structures (where an Indonesian holds title on a foreigner's behalf). These are not theoretical risks; they're being enforced.
Da Nang — apartments only, 50 years, with caveats
Vietnam permits foreigners to own apartments and a limited number of houses in approved commercial projects, on a 50-year leasehold (technically a Land Use Right) with a single renewal option for another 50 years. Within any building, foreigners may collectively own no more than 30% of units. For landed houses, the limit is 250 across an administrative ward area. Land itself cannot be owned by foreigners under any structure.
Two practical consequences. First, in popular beach districts the 30% quota fills quickly — and once it's full, foreign buyers in that building are locked out, including future foreign resale buyers. Second, the 50-year clock is real: Vietnamese law does not clearly specify whether a foreigner buying a resale unit gets a fresh 50-year term or only the years remaining. Most lawyers assume the latter. This is a structural ceiling on resale price as the years tick down, and it has to be modelled into any holding-period calculation.
Beyond title: where Phuket pulls further ahead.
Title structure is the biggest single difference, but not the only one. There are five practical areas where Phuket has a real advantage over Bali and Da Nang — most of them invisible until you actually start operating an asset across borders. Each one looks small on its own; together they're the reason most experienced cross-border buyers settle on Thailand for a tropical position.
The Thai baht is structurally more stable than the rupiah or the dong
This matters more than people expect. Over the last decade, the Thai baht has held a remarkably tight band against the dollar — typically within 7–8% in either direction, supported by Thailand's large current-account surplus, $250B+ in foreign reserves, and a conservative central bank. The Indonesian rupiah and Vietnamese dong have both depreciated meaningfully against the dollar over the same period, with double-digit drops in some years. For a buyer holding a property for 5–10 years, currency drift quietly eats into the dollar-equivalent return on the Bali and Da Nang side. On the Phuket side, this drag is much smaller.
Banking and money flow are easier
Thailand has a well-established framework for foreign property purchases. Funds wired into Thailand for buying a condominium are documented through a Foreign Exchange Transaction (FET) certificate, which is a standard, bank-issued document that proves the funds came in from abroad. This same document is what lets you eventually wire the money back out at sale, in full, in foreign currency. There is no quota, no special permission, no negotiation — it's a clean, predictable process.
Indonesia and Vietnam have meaningfully more friction here. Both countries have currency controls, less standardised documentation, and slower approvals on outbound transfers above certain thresholds. Investors who have done multiple deals across these markets will tell you the Thai banking experience is by a clear margin the most foreign-friendly in the region.
The property management industry is mature
Phuket has hundreds of established property management companies, hotel-style rental pools run by branded operators, and a deep pool of bilingual maintenance, cleaning and security staff. You can buy a condo, hand it to a pool manager, and have it generating revenue within weeks — without flying in. There are clear service standards, transparent fee structures, and meaningful competition.
Bali's management market is large but uneven; quality varies dramatically and the regulatory tightening on short-term rentals in 2026 has put pressure on operators. Da Nang is still developing this layer — most management companies are small, and "guaranteed yield" condotel programmes have been a serial source of disputes. The day-one operational ease of a Phuket property is materially higher.
Long-term visa options are real and accessible
Thailand has built one of the most usable visa frameworks in the region for long-stay foreigners: the Long-Term Resident (LTR) visa offers 10-year multi-entry rights for high-income earners, retirees and remote workers; the Thailand Privilege (formerly Elite) visa offers 5–20 year residency through a simple membership purchase; the Education visa covers families whose children attend international schools; and standard retirement visas are straightforward for buyers over 50. None of these are tied to property ownership, but together they make Thailand one of the easiest places to actually live for the months you choose, without paperwork stress.
Bali offers a Second Home visa and the Indonesian Golden Visa, but both have meaningful capital and income thresholds. Vietnam's long-stay options remain limited; most foreigners cycle through 90-day visas or business visas with periodic renewals. For families planning to spend more than three months a year on the ground, Thailand's visa framework is the smoothest.
Tourism demand is diversified across many countries
Phuket's rental and resale demand draws from a wide spread of source countries — Russia, Western Europe, China, India, Korea, Japan, the Gulf, Australia. No single country is more than 20–25% of arrivals. This is structurally protective: when one market softens (as Russia did in 2022, or China during COVID), others fill the gap.
Bali is significantly more dependent on Australian visitors, who make up close to 30% of arrivals. Da Nang is heavily concentrated on Korean, Chinese and domestic Vietnamese demand. Concentration of source markets translates directly into concentration of risk on rental income and resale demand. Phuket's diversified base is a meaningful piece of the case for using it as a long-term hold.
The tax structure is friendlier than most buyers expect
Thailand has no annual property tax to speak of (a small Land and Building Tax exists but on residential property used as a primary home, the effective rate is essentially zero up to ฿50M). There is no capital gains tax on personal property as a separate category — sale proceeds are taxed under personal income tax with substantial deductions for length of holding, and for most foreign sellers the effective rate is single-digit percent. There is no inheritance tax up to ฿100M (~$2.8M).
Vietnam applies a flat 2% transfer tax on the gross sale price, regardless of whether you sell at a profit or loss, plus 10% VAT on rental income above ~$4K/year. Indonesia has a 10% transfer tax (split between buyer and seller) and 20% income tax on rental earnings for non-residents. The Thai tax structure is the most foreign-friendly of the three by some distance, especially for long-hold buyers.
Lifestyle, infrastructure, daily life.
Tropical real estate is not bought purely on yield. Most foreign buyers will spend at least some of the year on the ground. What they walk into matters.
Healthcare
Phuket has Bangkok Hospital Phuket — a JCI-accredited international hospital with cardiac, oncology and obstetric departments, English- and Russian-speaking staff, direct billing with major foreign insurers. Surgical procedures cost a fraction of Western prices and care quality is at developed-world standard. Bangkok Hospital is the reason a number of expat families with children are willing to live here full-time.
Bali has BIMC Hospital and Siloam — both adequate for routine care and minor emergencies. For serious cardiac, neurological or oncology cases, residents typically fly to Singapore or Jakarta. Da Nang has Family Hospital and Vinmec — newer, growing, but still developing. Foreign residents serious about medical access tend to keep a relationship with a hospital in Singapore.
International schools
Phuket has more than eight accredited international schools, including British, American, IB and bilingual programmes — UWC South East Asia (Thailand), Headstart, BISP (British International School Phuket), and others. Curriculum continuity through to A-Levels and IB Diploma is established. The schools are full and growing.
Bali has fewer options, with the main international schools clustered in Sanur and Ubud — Bali Island School, Green School, and a small handful of others. Class sizes can be tight and waitlists long. Da Nang has only one or two school options that follow international curricula at scale, which is a constraining factor for families with school-age children. Many expat families in Da Nang send teenagers to boarding schools in Thailand, Malaysia or Singapore.
Connectivity
Phuket International Airport handles direct flights from the UAE, Qatar, Western Europe, Russia, China, Korea, Japan and Australia. Outside of brief weather periods, the airport has multiple direct daily options to most major hubs. This is logistically the biggest difference between Phuket and the other two markets in our comparison.
Denpasar (Bali) has direct flights from a similar set of hubs but with thinner frequency on some routes — many Europe-bound travellers connect through Singapore. Da Nang has limited direct international service; most flights to Europe or the Gulf require one stop, often two. For a buyer who plans to fly in monthly, this difference compounds quickly.
Tenant pool and rental demand
Phuket's rental market has matured beyond pure tourism. There is now a substantial year-round resident pool — remote-working professionals, retirees, families on long-stay visas, school-following parents. This means quality villas in Layan, Bang Tao, Cherngtalay or Rawai can be let on annual contracts at strong rates, even outside the high season. The single-rate annual contract is now a meaningful slice of the rental market.
Bali's rental demand is more skewed to short-term holiday and digital-nomad stays, especially in Canggu, Uluwatu and Ubud. Annualised yields in the 8–15% range exist on paper, but they require active management, regulatory compliance with the new licensing rules, and acceptance of seasonal vacancy. Net yields after management, marketing fees, taxes and the new compliance costs settle closer to 4–7%.
Da Nang's tenant pool is shallower. Long-term yields run 3–5% net. Short-term rentals through condotels have been the single largest source of foreign-investor losses in Vietnam over the last five years; many "guaranteed yield" programmes have been reduced or stopped paying entirely. Da Nang is a real estate market we'd describe as still finding its footing.
The investment math.
If we strip out the lifestyle component and look only at the financial case, here's how a $400K equivalent purchase compares across the three markets:
The Phuket case is structurally cleaner: a freehold condo at $400K, generating 7–8% net through a mix of long-let and high-season short-let, in a building with year-round demand and a deep resale market. The Bali case can produce higher peak yields but requires more active management, a leasehold clock, and tightening regulatory exposure. The Da Nang case is the most cost-efficient on entry — you genuinely get more square metres per dollar — but resale liquidity and the 50-year clock cap the upside.
Who each market is really for.
The cleanest way to choose is to honestly answer what kind of buyer you are. Three patterns capture most of the people we work with.
Pattern 1: Lifestyle-first, growth a secondary benefit
A family or couple who plan to spend 3–6 months a year on the ground, and want a base they own. They care about schools (or future schools), healthcare, neighbourhood, walkability, and the surrounding community. They will earn rental income on the months they're not there but the income is not the primary driver.
This buyer is best served in Phuket or Bali, with the choice depending on aesthetic preference more than economics. Bali offers a particular cultural atmosphere and creative-class community that some buyers weight heavily. Phuket offers significantly stronger infrastructure (schools, hospital, airport) and the security of freehold title — important if the asset is also intended as a long-term family holding.
Pattern 2: Investor-first, looking for a passive position
A buyer who is allocating $300K–$1M to tropical real estate as a portfolio diversifier, not a residence. They want clean title, predictable management, strong tenant pool, low active oversight, and a reliable exit when they want one.
This buyer is best served in Phuket. The freehold title eliminates the leasehold-clock problem that drags resale prices in both Bali and Da Nang. The deep tenant pool reduces vacancy risk. The mature management industry means you can leave a property under a single annual contract or a hotel-style rental pool and not have to think about it for years. This is the case where Phuket separates itself most clearly from the alternatives.
Pattern 3: Growth-first, willing to take more risk
A buyer who is younger, more involved, comfortable with more regulatory change and active management, looking for the highest possible upside on a smaller capital base.
This buyer can credibly consider Da Nang, where entry prices are still 30–50% below comparable Phuket and Bali properties, infrastructure is being built rapidly, and the foreign-ownership framework — while restrictive — is gradually liberalising. The trade-off is the 50-year clock, the limited resale market, and the operational overhead of managing remotely in a less developed legal environment.
The honest answer.
If you take only one thing from this comparison, take this: the question is not "which market is best" but "which structure of ownership do I actually want." A leasehold villa in Bali at 8% gross is a different asset from a freehold condo in Phuket at 7% net, even if the cash flow looks similar on the spreadsheet. One is a contract that depreciates with time; the other is a registered title that doesn't.
For most buyers we speak with — especially those allocating serious capital, planning a multi-year hold, and wanting a clean exit — Phuket has the structural advantage. Freehold condos, mature secondary market, the deepest infrastructure of the three, and direct connectivity. The market has its own risks (oversupply in some condo segments, currency exposure, the usual tropical operational realities) but the legal foundation is the strongest of the three.
Bali wins on community and atmosphere. Da Nang wins on entry price. Phuket wins on what you actually own.
Three questions that usually decide it.
If you're stuck between the three, work through these in order. They're the same questions we run through with clients in the first call, and they almost always point to a clear answer.
- Do I want a registered title in my own name, or am I comfortable with a contract? If the answer is "title in my name," your only option among the three for a beachside property is a Phuket condominium. Bali offers no freehold to foreigners under any structure; Da Nang offers a 50-year leasehold but the underlying land never belongs to you. This single question removes most ambiguity for buyers who think long-term.
- Will I actually use the property, or is it pure investment? If you plan to spend even a couple of months a year on the ground, infrastructure starts to matter as much as yield — Phuket's hospital, schools and direct-flight network are why families with children consistently pick it over Bali and Da Nang. If it's pure investment with you visiting once a year, the choice opens up: Phuket gives the cleanest structure, Bali the highest peak yields if actively managed, Da Nang the lowest entry price.
- How long do I plan to hold this asset? If under 5 years, the legal differences matter less and entry price drives the return — Da Nang and Bali become more competitive on the math. If 10 years or more, freehold dominates: a leasehold villa in Bali with 18 years left at year 10 is a different asset from one with 28 years left, and a Da Nang apartment with a 50-year clock starts to feel that clock by year 8 or 9. Phuket condos don't have this problem because freehold doesn't depreciate.
The pattern that emerges across most of our conversations: serious buyers with longer horizons settle on Phuket because the structural picture compounds in their favour over time. Buyers focused on community, atmosphere or short-term lifestyle often prefer Bali. Buyers with a smaller capital base and a higher tolerance for operational complexity look at Da Nang. All three are legitimate paths — but they lead to different places.