Phuket, a tourism hub with 10+ million annual visitors, offers high rental and capital returns. It's popular with holidaymakers, investors, and expats, with established infrastructure and a large expat community. Buyers include holiday home seekers..
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.