Buying property in Phuket
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Buying property in Phuket has become very popular in the past 10 years as the island has matured as an international jet-set destination. Whereas it was the booming tourist industry that fed property sales from the mid-1980s, lately a lot more foreigners have been returning regularly to spend part or all of the year in Phuket.
It’s quite realistic to buy property in Phuket and the infrastructure and local industry are very professional and well developed. Driven by foreigners, it caters to foreign tastes and expectations and offers a lifestyle and luxury that would be out of reach to all but the very wealthy in most other similar locations. Thailand offers a much cheaper experience, and in the Phuket property industry, this has simply been translated as more mileage for your money. There is nothing ‘cheap’ about Phuket, but the properties that are selling for half a million US dollars are an exceptionally luxury lifestyle experience.
Property in Phuket is dominated by foreign buyers and leasers but Thai law prevents outright ownership of land by a non-national, which means that local tycoons still own much of the land area. Company arrangements and the use of proxy owners, such as Thai spouses, are often used for foreigners to become quasi-owners of property in Phuket.
Although property laws in Thailand restrict foreign ownership outright, there are several avenues open to foreigners to acquire semi-ownership, and we can help you explore a legal and sound basis of assuming ownership of villas, condos and houses. In late 2006, the post-coup government initiated a stricter interpretation of ownership of land by companies that were half owned by foreigners. However, there have been proposals to introduce more equitable long-term lease arrangements on the land, currently under pilot programme on Samui.
Although you may not be the lawful owner of the land, you are allowed to own the building and become the owner-tenant. Renewable 30-year lease arrangements are the most popular form of overcoming this restriction.
Buying condo property in Phuket is far more straight-forward since a more up-to-date law allows 49 per cent of a condo building to be owned by a foreigner. This has proven popular in Pattaya and Bangkok, but many do prefer to live on terra firma and enjoy the lifestyle and privacy of a pool, garden and sizeable outdoor area.
Phuket property has never had it so good and continues to boom, as developers now look to the less popular eastern side of the island to avoid the crowded and overpriced west coast. Others are opting to get much better value property in central Phuket where they can get a more peaceful environment away from the bustle of the high season, and be closer to Phuket Town and its amenities. Nonetheless, investors continue to pour in from Hong Kong, Singapore and overseas to snap up villas purely for speculative purposes as more and more people want a piece of Phuket.
Entry level into Phuket’s property market isn’t cheap, and there certainly isn’t the mass cheap apartment scenario that Spain undertook in the 1970s and ‘80s. The investing here is far more upmarket and tasteful. Although it has slowed down, relative to Pattaya for instance, the investment on Phuket is set to continue growing with more developments emerging. Phuket is considered relatively safe when it comes to your money, with long-term returns encouraging. Accessibility, location, style and size however, are all important when investing in a Phuket property.
When buying property in Phuket the most important factor is to find a reliable and ethical agent with an international reputation. Phuket Andaman Real Estate is Swiss managed and operates on European standards of business satisfaction. Thai legal support and courts are often not very favourable to foreigners when land disputes arise involving a local. The country has an unfortunate reputation for unethical and dishonest business people who take advantage of unsuspecting foreigners who are unfamiliar with local practices.
Although English is the lingua fraca of Phuket’s property industry, all documentation must be in Thai. By dealing with a reputable agent that has met international expectations consistently, you will eliminate most potential pitfalls. With the rapid growth in property in Phuket, there have been plenty of scams, illegal land grabs and sales of land whose ownership is in dispute.
Finally, if you are interested in buying property in Phuket, we advise you to take your time and trust your agent to present you with a variety of choices. There’s much to be learnt about the island’s different areas and characteristics, which vary considerably, and it takes time to find the ideal location for your preferences. Many people come here, fall in love with the place and immediately buy something that seems relatively cheap compared to ‘back home’ only to later discover they’ve been ripped off. More on
Phuket real estate news.
Apartments in Phuket
Houses in Phuket
Villas in Phuket
Buying land in Phuket
Real estate overview
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