Phuket is an attractive place for real estate investment. Many people initially come to the island as tourists, then stay for the winter, and eventually decide to buy property. Here, we’ll explain how to buy an apartment in Thailand and who to contact for assistance.
How to Buy an Apartment in Phuket
A foreign citizen can purchase apartments in new developments and existing buildings in Phuket. Today’s technology allows for transactions to be conducted remotely if you are unable to be present in person.
Foreign buyers often use agencies with translators, which significantly simplifies the property acquisition process.
The process of buying an apartment in Thailand typically involves the following steps:
- selecting an apartment
- reserving the property
- paying a deposit (included in the total cost of the property)
- signing the sale and purchase agreement
- paying the contract amount
- taking possession of the property
When purchasing a property on the secondary market, all steps remain the same except for the final handover inspection.
To make the process easier, we recommend working with a reputable company where a lawyer can guide you through each stage of the transaction.
Buying property is an important and responsible step. We’ve reviewed and selected the top 3 companies that assist with choosing and purchasing apartments in Phuket, so you can complete your transaction confidently.
If you’re interested in renting property, check out our articles on Apartments Rental and Villas Rental.
Types of Property Ownership in Thailand
There are two forms of property ownership in Thailand: Freehold and Leasehold. Let’s take a closer look at their differences.
Freehold – meaning “full ownership” – is complete and indefinite ownership of the property. The owner has absolute rights to the property and can use it at their discretion: rent it out, sell it, or pass it on as inheritance.
Leasehold is a limited-term ownership based on a long-term lease. The owner leases the property for a long period but does not own it outright. The lease term is 30 years, with the option to renew the lease twice. The maximum lease period is 90 years. Inheritance of such property may be limited by lease terms.
Ownership Type Differences Depending on Property Type
In Phuket, buyers typically choose properties in condominiums or apartments.
Condominium Owners have rights to their unit and a share in common property (the complex may include amenities like a pool, gym, and other infrastructure). Condominiums can be registered as full ownership (Freehold) or long-term lease (Leasehold). However, foreigners can own only up to 49% of the residential area (of the entire condo, not just a specific unit), while the remaining 51% is under Leasehold.
Apartment purchases under Leasehold allow the owner to use and resell the property, but ownership does not transfer, so it’s more akin to a long-term rental. Additionally, the buyer pays a one-time fee of 1.1% of the property price to the government, with developers often covering half.
For Freehold purchases, the buyer pays 6.7% of the property value to the government, with the developer usually sharing the cost on a 50/50 basis.
Where to Buy Property in Phuket
Properties in Phuket are bought for two main purposes: rental income and personal residence. Start by deciding on your primary goal for the purchase.
Price is influenced by location, proximity to beaches, and the complex’s level of amenities. If buying as an investment with plans to rent the apartment, consider popular tourist areas with high demand.
Patong, Karon, Kata, and Bang Tao are bustling areas with frequent tourist turnover, ideal for short-term rentals.
Surin, Kamala, Nai Harn, Rawai, and Mai Khao are quieter but still popular among tourists.
If you plan to relocate to Phuket, consider areas with essential infrastructure: shopping centers, large supermarkets, nurseries, schools, hospitals, banks, gyms, etc.
Phuket Town, Kathu, and Chalong, as well as tourist-friendly Bang Tao, Nai Harn, and Rawai, have everything needed for island living. Note that if you later decide to rent out your property, an apartment further from the beach will typically have a lower rental rate than one on the shore.
Some buyers don’t intend to move to Phuket permanently and prefer a place to stay occasionally. For seasonal living, areas without heavy tourist traffic but with good infrastructure are often preferred. Nai Harn and Rawai are suitable for this purpose. If desired, you can arrange temporary rentals during your absence, providing additional income.
If you are considering buying a villa, see our article on Villas Purchase.
Reliable real estate agencies can help find the right property for your needs in the desired area and guide you through each stage of the purchase, verifying all terms.
Buying property is an important and responsible step. We’ve reviewed and selected the top 3 companies that assist with choosing and purchasing apartments in Phuket, so you can complete your transaction confidently.
Buying property in Phuket is an opportunity to fulfill the dream of living on a tropical island. Find your perfect place and enjoy every moment!