Overview of the Different Types of Properties in Thailand
As a whole, the real estate market in Thailand can be divided into four main categories. Although for some, the difference is not in the property itself (apartment in a building), it is in the management mode and/or type of building.
- Houses/Villas: To acquire a house or a villa as an expatriate in Thailand, it is necessary to either form a company with a Thai partner that owns 51%, or by resorting to the long-term concession. This means that you own the building 100% and rent the land to a Thai owner for a period of 30 years, renewable two times, for a maximum of 90 years.
- The Condominium: This is a “condominium apartment” where each occupant owns part of the building. Often, condominiums are quality properties, offering services such as a swimming pool, gym, concierge, or shuttle service. This type of property is very popular with expatriates because it is open to full ownership to them thanks to the Condominium Act of 1979.
- The Apartment: From an outside point of view, the apartment looks like two drops of water to a condominium. However, the subtlety lies in the fact that the apartment is located in a building entirely owned by a single owner. In this case, only renting is possible in this type of property.
- The Serviced Apartment: The occupant of this apartment (or the villa in some cases) can enjoy his property while having the benefits of a luxury hotel: reception, maintenance, cleaning , swimming pool, catering and many others. The hotel company will take care of all the procedures for finding a tenant, check-in/check-out, without you having to do anything. You still have the the opportunity to reside generally 30 days a year in your part (or an equivalent lot) of the residence. These programs even sometimes have a guaranteed rental return!
Where to Buy Based on Location?
The great supply of condominiums is important. The vast majority of properties is recent (less than 10 years old) and offers first-rate services. Indeed, few condominiums have no pool or gym for residents.
As for houses, they exist but are much less numerous than condominiums. These give the opportunity to acquire larger properties, in general, than condominiums, making them ideal for families.
Phuket is a popular seaside resort. The villas with sea views are first class properties for people wishing to invest. These properties are continually sought after and constitute a relatively safe investment. The flip side is the cost of access to this type of property, which is naturally higher than for other types of property in general.
This is why the supply of condominiums has risen sharply in recent years. Therefore it’s possible to afford housing for a lower price while enjoying the services of modern condominiums.
Finally, the offer of serviced apartment is consistent and particularly well established in Phuket. This is due to the strong tourist presence of the island, the hotel-like management of rentals, and the possibility for investors to enjoy their resort in Thailand 30 days a year.