Condo Investment in Phuket
The only property type foreigners can own freehold in Thailand — but not all condos are created equal.
Why Condos?
Condominiums are the only property type in Thailand that foreigners can own outright (freehold) — up to 49% of the building's total area. This makes them the safest and most straightforward investment vehicle for international buyers.
Primary Market (New Build)
New developments offer modern designs and payment plans, but come with significant risks. Off-plan projects may never be completed. Developers offering guaranteed returns often inflate prices to cover the guarantee. The influencer promoting that shiny new project? They may earn up to 10% commission.
Red Flags to Watch For
- Guaranteed rental returns above 7% — usually baked into an inflated price
- Developer with no completed projects to inspect
- High-pressure sales tactics or 'limited time' discounts
- No escrow account for construction payments
Secondary Market (Resale)
This is where we focus. Resale condos are finished, verifiable, and often 20–40% cheaper than equivalent new builds. You can inspect the actual unit, check the building's maintenance, verify rental history, and negotiate with motivated sellers.
Why We Love the Secondary Market
- See exactly what you're buying — no renders, no promises
- Often significantly below new-build prices for the same location
- Proven rental track records you can verify
- Renovation potential to increase value 30–50%
Freehold, Foreign Quota & Money Transfers
Foreigners can own condo units freehold — but only up to 49% of the building's total registrable area. If the quota is full, you can only buy on leasehold terms, which significantly affects resale value. Before purchasing, always verify the quota status at the Land Office.
When buying freehold as a foreigner, you'll typically need to prove that purchase funds entered Thailand in foreign currency. The bank issues a Foreign Exchange Transaction Form (FET/FETF) — this document is required at the Land Office for title transfer. Without it, the transfer can be blocked.
Payments, Escrow & Buyer Protection
Escrow exists as a legal instrument in Thailand, but it is not standard practice in residential off-plan transactions. Most developers collect payments directly according to a milestone schedule. This means your money is at risk if the developer encounters financial problems.
New consumer protection regulations (2024/2025) have strengthened requirements for condo reservation agreements — including mandatory contract elements and situations where buyers can terminate (e.g., issues with EIA permits, construction permits, or material changes). Ask your lawyer about these protections.
Realistic Rental Yields
Well-located condos in Kamala, Bang Tao, or Surin generate 5–8% net annual yield when professionally managed. High season (November–February) drives 70–80% occupancy; monsoon season (May–October) drops to 40–50%. Anyone promising double-digit returns year-round is not being honest.
How We Calculate Real Returns
We distinguish between gross yield (annual rental income ÷ purchase price) and net yield (after management fees, maintenance, vacancy, insurance, and taxes). The difference is typically 1.5–2 percentage points. When someone quotes you a yield, always ask: gross or net? And does it account for vacancy?
Rental: Long-Term vs Short-Term
Your rental strategy has legal implications that directly affect your returns — and your risk exposure.
Long-Term (30+ days)
Rentals of one month or longer fall outside the Hotel Act definition. This is the simplest, lowest-risk model. No hotel license required. Stable tenants, predictable income, fewer operational headaches.
Short-Term (under 30 days)
Thailand's Hotel Act defines 'hotel' as providing temporary accommodation for payment. Rentals under 30 days may fall under this definition and require a hotel license. Most condo buildings don't have one — and many condo juristic committees actively prohibit short-term rental. Enforcement has increased since 2023.
Regulatory Changes
Recent amendments raised the exemption threshold for small operators to 8 rooms and 30 guests. The regulatory landscape is dynamic — what's tolerated today may not be tomorrow. We monitor these changes and adjust our advice accordingly.
Best Locations for Condo Investment
Kamala
Our home base. Balanced mix of beach lifestyle, restaurants, and growing infrastructure. Strong long-term and short-term demand.
Bang Tao / Laguna
Premium area around Laguna complex. Popular with families and upscale travelers. Higher entry price, stable demand.
Surin
Boutique beach area. Limited supply, strong rental premiums. Harder to find deals, but excellent when you do.
Kata / Karon
Tourist-heavy areas with more affordable entry. Higher competition, moderate yields. Good for budget-conscious investors.
Where to Be Cautious
Bang Tao dominated new condo launches in 2024 — which means intense competition for tenants and future buyers. High supply areas can pressure both rental rates and resale values. We help you identify micro-locations where demand still outpaces supply, rather than chasing the newest project in an oversaturated zone.