Why Invest in Phuket Property?

Tourism hub 

10+ million visitors annually

Ideal location 

Close proximity to emerging Asian economic giants

Strong long-term demand forecast Rising Asian middle class, hotel/infrastructure development

High rental & capital returns 

Popular with holidaymakers and investors

Established infrastructure International airport, marinas, malls, int'l schools

Expat haven 

Large community attracted to island lifestyle

 

Who's Buying Phuket Property?

Holiday home seekers - Tropical paradise with stunning beaches

Rental investors - High tourism driving rental occupancy

Hospitality developers - Adding 4,000+ new hotel rooms over 5 years

Relocating expats - Europeans and Aussies choose Phuket for retirement, seeking a more relaxed lifestyle in a picturesque setting.

Russian buyers - Phuket is considered a safe haven for Russians amid the Ukraine conflict

Asian buyers - Chinese and Singaporean investors 

Second-home purchases - Affluent Thais and rising middle class

 

Property Ownership Option for Foreigners

Condominium Ownership

Foreigners can directly own condos in perpetuity

Must meet Condo Act requirements:

Total foreign ownership < 49% of living area

Transfer full purchase price from overseas

Full ownership rights on par with Thai buyers

 

Houses/Land Ownership

Foreigners cannot directly own land

Can secure long-term leases up to 30 years

Provides stability vs 1-year renewals

Options:

Lease house and land

Lease land only and build house

No guarantee of lease renewal after 30 years

 

Other Ownership Structures

Place property under Thai spouse/friend’s name

But they legally own and control it

Establish company with 51% Thai shareholders

Must formally operate Thai business

Complex annual reporting etc.

 

Ownership Type:

Freehold

Condominiums only

Direct ownership

Capital appreciation

No expiry

Can sell/rent freely

Typically more expensive

Leasehold

Houses/land plots

Lease from Thai owner

Lower upfront cost

Time-bound (30+30+30 years)

Can construct buildings

Renewal payments required

 

Property Transfer Fees And Taxes In Thailand

2% transfer fee - Typically split between buyer and seller

0.5% stamp duty - One-time tax paid during property transfer

Legal fees (if applicable)

 

Buying Process Basics for Foreigners

Define requirements - Bedrooms, amenities, location preferences

Research options - Utilize the agent's database of 700+ Phuket properties

Viewings  - Visit site with agent/Video walkthroughs and live video calls

Buyer signs sales contract and make the initial reservation deposit payment

Progress payments issued based on construction milestones

Developers complete final fit-out and testing

The buyer's lawyer conducts final inspection and verifies completion

Developer applies for certificate of building and utilities connection

Handover appointment for buyer side agents/staff to take possession

Developer handles title deed subdivision and transfer process at Land Office

New individual freehold title with buyer name registered at Land Department

 

CAM Fees in Condominium

CAM Fee Overview

Monthly maintenance fee for every unit owner

Calculation

Based on unit size, larger units pay more

Covers maintenance of common areas

Expense Coverage

Includes security, pool, gym, and utilities

Phuket Scenario

Avg. CAM Fee: 50 Baht/sqm

Caution on opting for low-cost condos

Sample Calculation

Example: 60 sqm Condo = 3,000 THB/month

 

Sinking Fund

One-time payment by every condo owner

Calculation Basis

Based on unit size in square meters

Purpose

Covers major repairs and upgrades

Phuket Scenario

Ranges: 500 to 1,500 Baht/sqm

Example Calculation

60 sqm unit * 500 THB/sqm = 30,000 THB

 

Buying Off-Plan Property in Thailand

Advantages

Maximize ROI with lower upfront costs

Developers offer incentives for unfinished properties

Phuket projects often promise attractive rental returns

Buying Strategy

Secure property at a lower price

Capitalize on surrounding area development

Ideal for investors navigating high housing prices

 

Buying Off-Plan - Benefits

Financial Perks

Off-plan prices 25-30% lower than completed projects

Early buyers enjoy larger discounts

Minimal deposit amounts, e.g., US$ 3,500 - 5,000

Payment Structure

Staged payments aligned with project progress

Customization options and prime unit selections

Developers often throw in free upgrades and perks

 

Buying Off-Plan -Risks and Due Diligence

Potential Drawbacks

Project cancellations and delays

Dependency on images and videos for visualization

Construction-related inconveniences for early buyers

Due Diligence Steps

Thorough research on developer and construction company

Clear contract terms, including price and specifications

Verification of title deeds, licenses, and project costs

Understanding penalties, compensation, and dispute resolution

 

Phuket's Holiday Home Trends and ROI Strategies

Demand Surge:

Growing interest in Phuket's holiday homes due to increased visitor desire for property ownership.

Hotel Collaborations:

Partnerships with global hotel chains turn projects into lucrative hotel-managed developments.

Guaranteed Returns:

Projects offer 5-15% annual returns for a minimum of 3 years, managed by hotel teams.

Buyback Options:

Unique Repurchase Offers:

Developers may buy back properties at the original price plus a significant percentage after a specified period.

Seamless Investment

Rental Pool Benefits:

Owners join rental pools for property use as a hotel room, ensuring passive income and personal usage.

Adherence to developers' furniture packages ensures uniformity for effective property management.