Thailand: What is the advantage of Thai development projects over secondary property?

Property suitable for foreign investors in Thailand began its development about 20 years ago. The first properties are noticeably different from the apartments and villas that have been under construction for the last few years. Today you can buy property in Thailand online, so you do not even have to come to the Kingdom. However, before you buy an apartment, you should know what is more profitable: buying apartments in development projects or buying secondary property.

Content:

• Property in Thailand
• What is the advantage of a property in development over a secondary property?
• Risks of buying a secondary property
• Why has the demand for expensive villas in Thailand increased?
• What villas are for sale in Thailand right now?
• What does the price of the house depend on?
• Purchase in installments
• Sales of apartments in development in Thailand

Property in Thailand

There are many reasons to invest in apartments and villas in Thailand in 2024:

1. Stability of the national currency and economy;
2. Fast adaptation of the migrants and friendly local residents;
3. Possibility to visit the Kingdom for recreation at any time of the year;
4. Perfectly developed resort infrastructure;
5. The ever-increasing demand for local apartments and villas, which allows reselling properties at a profit.

According to the Central Bank of Thailand, the real estate in the Kingdom has been growing in value by 4–5% annually for the last 10 years. The increase in value is influenced, among other things, by rising demand.

Currently, the most profitable investment in overseas real estate is the Thai development property.

What is the advantage of a property in development over a secondary property?

The real estate market in the Kingdom is diverse, but most investors are investing in development property, as it helps to capitalize on investments.

If you buy an apartment at the stage of excavation, the property will be 30–40% cheaper than its value after it is commissioned.

There are several other advantages of investing in real estate in development.

1. Many developers provide interest-free installments. It is only possible to buy a secondary residential property after paying the entire price at once. Local lending institutions do not issue mortgages to foreigners.
2. Specialists of construction companies develop new projects with many infrastructure facilities: indoor and outdoor parking lots, swimming pools, saunas, children's play areas, gyms, fitness studios, tennis courts, conference rooms, and so on. Residents of the residential complex are often able to use all of this 24/7.
3. New buildings are commissioned on a turnkey basis. You are buying an apartment or villa with finishing, new furniture and appliances. When you buy a furnished secondary residence, the furniture in it is usually not new.

Risks of buying a secondary property

The main risk is possible defects of the house, not noticeable at first glance.

Specialists recommend checking the entire history of the residence when buying secondary houses and apartments. Otherwise, an unpleasant surprise may await the buyer after signing the purchase contract. The service of checking the history of real estate is provided by real estate agencies, so the buyer does not have to do the checking themselves. However, in this case, when buying a house, there will be another line in the additional costs.

Why has the demand for expensive villas in Thailand increased?

For those who want to move to Thailand for permanent residence, the purchase of property in the Kingdom is an opportunity to get a long-term Thai visa.

To get it, you need to buy a house priced at least $500,000. The visa obtained for investment in real estate will be valid for 10 years.

What villas are for sale in Thailand right now?

• A villa of 522 m² on the island of Phuket sells for $575,000.
• A house of 3,680 m² in Phuket costs $6,800,000.
• A house of 70 m² in Phuket can be bought for $157,000.
• A villa of 133 m² in the suburban village of Bang Sare, located in 30 minutes from Pattaya, sells for $523,000.
• A villa of 4,500 m² in Phuket costs $11,300,000.
• A house of 1,050 m² in Surin, which is in the northeast of the country, can be purchased for $4,500,000.

What does the price of the house depend on?

The cost of a house depends on many factors:

1. The location of the residential facility;
2. The area of the villa;
3. The distance from a house to the seashore and distance to the center of the village;
4. The date of commissioning of the house;
5. The urgency of a sale.

Purchase in installments

When purchasing from a developer of commissioned real estate immediately after signing the sales agreement, the buyer usually pays 40–50% a property value. The remainder is paid by the buyer after the registration of the ownership of the house.

At the stage of pre-sales, the developers offer to buy a house in interest-free installments.

After the payment of the deposit, the developer has no right to increase the value of the residential property. The terms and timing of payments are negotiated individually and depend on the developer and the stage of construction.

The developers often offer to pay off debts over a period of one to three years. The scheme is approximately as follows.

1. An initial deposit of $3,000–4,000, which is required to book your chosen residential property.
2. The first transfer is 30% of the property value, which is needed to activate the contract.
3. The payment of the remaining amount when you receive the keys or payment of 15–20% at each stage of construction.
4. The last payment of 5–10% of the real estate value upon registration of the residential property and obtaining the keys.

There are also developers who offer an additional installment plan at 5% per annum after construction completion.

It is possible to pay for a property in development or a commissioned property using cryptocurrency. In Thailand, litecoin, bitcoin, ethereum and any other cryptocurrencies are legal means of payment. Many local developers have their own official cryptocurrency wallets.

Sales of apartments in development in Thailand

Take a look at the apartments in development projects right now.

• Apartment of 221 m² in Phuket are for sale for $870,000.
• Apartments of 208 m² in Phuket cost $6,830,000.
• Apartments of 221 m² in Phuket can be bought for $399,000.
• Apartments of 61 m² in Phuket are for sale for $132,000.
• Apartments of 187 m² in Phuket cost $645,000.
• Apartments of 201 m² in Phuket can be bought for $632,000.