As of 2026, our analysts are monitoring at least 14 condominium projects in Phuket where developers require more than 50% of the purchase price before foundations are complete. In three cases we examined in detail, buyers from outside Thailand lost between 1.2 and 4.8 million THB each - losses that trace directly to payment schedule structures designed to favour the developer over the buyer. Below, we present anonymised post-mortems of those transactions.
The problem is most concentrated in Kamala, Bang Tao and Rawai, where rapid construction activity is drawing buyers with projected rental yields of 6-8% per year. Based on our data sets, a standard, buyer-protective payment schedule in Thailand distributes risk roughly evenly: 10-30% at reservation and contract signing, with the remainder due at title transfer. An aggressive schedule inverts that ratio entirely.
Quick answer
- In a safe payment structure, the buyer commits no more than 30% of the purchase price before the shell construction (raw structure) is complete
- In the cases we analysed, developers collected 50-80% of the price within 6 months of signing, against a stated completion date of 18-24 months away
- The combined financial cost to the three buyers in our sample was approximately 9.4 million THB (roughly 1.1 million PLN at Q1 2026 exchange rates)
- The single most important warning signal: no Construction Permit or EIA approval in place at the time the first major instalment is collected
- Based on our estimates, roughly one in three new condominium projects in Phuket in the 3-7 million THB per unit segment applies a payment schedule we classify as aggressive
- International buyer enquiries for Phuket projects have grown approximately 40% year-on-year in our contact database, making the scale of this risk increasingly relevant
Options and scenarios
Case 1 - Condominium in Kamala, purchase price 5.2 million THB
Starting position. A buyer from Central Europe signed a reservation agreement in mid-2024 for a 42 sq m unit in a condominium project in the Kamala area. Price: 5.2 million THB. Stated completion: Q4 2025. The developer presented the following payment schedule: 100,000 THB deposit, then 40% (2.08 million THB) within 30 days of contract signing, a further 30% (1.56 million THB) after 90 days, with the remainder at title transfer.
What went wrong. The buyer transferred a total of 3.74 million THB (72% of the purchase price) within four months - before any foundation work had begun on site. No verification was made of whether a valid Construction Permit existed. The developer's track record on previous projects was not checked.
Warning signals that were missed. The Construction Permit was issued only five months after the first large instalment was collected. The developer was a company registered just eight months before sales launched, with registered capital of 2 million THB - an amount insufficient to purchase even a single unit in its own project.
Cost of the error. As of Q1 2026, the project is delayed by more than 12 months and construction is not complete. The buyer attempted to recover funds. The developer offered to return 50% of the amount paid, net of 'administrative costs'. Estimated loss: approximately 1.9 million THB.
What our analysts would have done differently. Before transferring any amount beyond the reservation deposit (typically 50,000-200,000 THB), we would have verified: (a) the Construction Permit number and issue date at the local government office, (b) the developer company's registered capital and history in the DBD (Department of Business Development) registry, and (c) actual on-site construction progress. We would have negotiated the payment schedule so that cumulative payments did not exceed 30% of the price before the shell structure was closed.
Case 2 - Condominium in Bang Tao, purchase price 8.5 million THB
Starting position. An investor acquiring a 65 sq m unit in a premium project in Bang Tao. Price: 8.5 million THB. Schedule: 200,000 THB deposit, followed by six equal monthly instalments of 1.05 million THB each (totalling 6.3 million THB over six months), with the balance at handover. Stated completion: Q3 2025.
What went wrong. After transferring 6.5 million THB (76% of the price) over seven months, the buyer discovered the developer had not obtained the Environmental Impact Assessment (EIA) approval required for projects exceeding 80 units. Construction was halted by administrative order.
Warning signals that were missed. The project contained 96 units - above the 80-unit threshold that triggers a mandatory EIA under Thai law. The absence of an EIA reference number in any sales materials should have been a red flag from the outset. Additionally, the purchase contract contained a clause permitting the developer to delay handover by 'up to 24 months without the buyer having the right to withdraw'.
Cost of the error. As of Q1 2026, construction remains stopped. The buyer filed a complaint with the Office of the Consumer Protection Board (OCPB). Estimated loss in a pessimistic scenario: 4.8 million THB (amount paid minus the realistically recoverable portion).
What our analysts would have done differently. For any project above 79 units, we verify EIA approval before any contract is signed. A schedule of six equal calendar-based monthly instalments, with no linkage to construction milestones, is a structural alarm signal in our assessment framework. Instalments should be tied to verified progress on site, not to dates on a calendar.
Case 3 - Pool villa in Rawai, purchase price 12 million THB
Starting position. A buyer acquiring a pool villa in an eight-unit project in the Rawai area. Price: 12 million THB. Schedule: 30% at contract signing, 50% after three months, 20% at handover. Stated completion: ten months.
What went wrong. After transferring 9.6 million THB (80% of the price) within four months, the buyer identified that the land title had not been properly subdivided. All eight villas were to be built on a single Chanote title with no surveying subdivision completed. The ownership structure through a Thai company had not been properly secured legally.
Warning signals that were missed. A single Chanote title covering eight properties means no individual title can be issued until a formal subdivision is registered. No subdivision survey documentation (Sor Kor 1) was available at point of sale. The developer company and the company that had purchased the land shared the same director.
Cost of the error. Negotiations are ongoing. Based on our estimates, the buyer faces a potential loss of approximately 2.7 million THB in legal costs, delays, and the likely need to accept unfavourable subdivision terms.
What our analysts would have done differently. Before any payment beyond the reservation deposit, we would have checked the legal status of the land at the Land Office, required presentation of surveying subdivision documentation, and obtained an independent legal opinion on the company structure. The payment schedule would have been linked to specific milestones: (a) confirmed Construction Permit, (b) foundation completion, (c) shell structure closed, (d) final inspection passed.
Comparison table
| Parameter | Safe schedule | Moderately risky | Aggressive (cases analysed) |
|---|---|---|---|
| Payment before construction starts | 10-15% of price | 20-30% of price | 40-80% of price |
| Payment before shell structure complete | Max 30% of price | 40-50% of price | 60-80% of price |
| Instalments tied to construction milestones | Yes, defined milestones | Partial | No - calendar-based |
| Typical time to reach 50% paid | 12-18 months | 6-9 months | 1-4 months |
| Construction Permit required before payment | Yes | Not always | Rarely |
| Refund clause if delayed beyond 6 months | Full refund | Partial refund | None or 'after 24 months' |
| Typical Phuket districts (2026) | Laguna, Cherng Talay | Surin, Karon | Kamala, Rawai, Bang Tao (selected projects) |
| Estimated share of Phuket projects | Approx 35% | Approx 35% | Approx 30% |
Risks and mistakes
Risk 1: Developer liquidity. When a developer collects 70-80% of the purchase price at an early stage, this is a reasonable indicator that the project is financed entirely from buyer deposits rather than from the developer's own capital or a bank facility. Any slowdown in sales can leave insufficient funds to complete construction.
Risk 2: Loss of negotiating leverage. Once the majority of the price has been paid, the buyer loses their primary practical leverage. Under Thai law, pursuing a developer for breach of contract is a process that typically takes two to five years and costs 300,000-800,000 THB in legal fees.
Risk 3: Compressed currency exposure. International buyers converting foreign currency into THB face concentrated exchange rate risk when an aggressive schedule requires the full conversion within a short window. In 2025, THB exchange rates against major currencies fluctuated by more than 9% across the year - a meaningful exposure when the transaction size is in the millions of baht.
Risk 4: Anti-withdrawal clauses. In the contracts we reviewed, we found clauses permitting the developer to retain 100% of payments made if the buyer withdraws for any reason. Such clauses are potentially challengeable in a Thai court, but the process of mounting that challenge is itself costly and time-consuming.
Measurable red flags we apply when assessing a payment schedule:
- Total payments required before a Construction Permit is issued exceed 200,000 THB
- More than 50% of the price is required within the first six months
- Instalments are tied to calendar dates rather than verified construction stages
- No refund clause for delays exceeding six months
- Developer company's registered capital is below 10% of total project value
- Developer company was registered less than two years before sales commenced
FAQ
What is a standard payment schedule for an off-plan condo in Phuket in 2026?
Based on our monitoring, a buyer-protective structure looks like this: reservation deposit of 50,000-200,000 THB, then 20-30% of the price at contract signing (after a confirmed Construction Permit), further instalments tied to verified construction milestones, and 30-50% of the price at title transfer and key handover.
Can the payment schedule be negotiated with a Thai developer?
Yes. The payment schedule is a contractual term and is open to negotiation. Reputable developers in Phuket and Koh Samui typically accept modifications, particularly for units priced above 5 million THB. An outright refusal to negotiate any aspect of the schedule is itself a warning signal in our assessment.
How do we verify a Phuket developer's credibility before paying?
We verify through the DBD (Department of Business Development) registry: the company's registration date, registered capital, shareholder structure, and financial statements. We also check the history of completed projects at the Land Office and cross-reference with local professional networks. The cost of a basic legal due diligence check is typically 15,000-40,000 THB.
What should a buyer do if the developer delays construction after 70% has been paid?
Engage a Thai lawyer immediately to review the contract for delay provisions. File a formal complaint with the OCPB (Office of the Consumer Protection Board) and send the developer a written demand notice by registered post. OCPB mediation is free and typically takes two to four months to complete.
Do the same rules apply on Koh Samui as in Phuket?
The legal framework is identical across Thailand - the Condominium Act B.E. 2522 and its amendments apply nationwide. In practice, Koh Samui has fewer large-scale condominium projects, which correlates with a lower proportion of aggressive schedules. Based on our estimates, approximately 15-20% of projects in the Bophut and Maenam areas apply schedules we classify as risky - lower than the Phuket figure.
How much does legal review of a developer contract cost in Thailand?
Full legal review of an off-plan purchase contract by a law firm in Phuket or Koh Samui ranges from 25,000 to 80,000 THB depending on transaction complexity. That covers contract analysis, land title verification, and permit checks. Against transaction values of 3-15 million THB, this is a marginal cost with significant protective value.
What documents should a developer provide before the first major instalment?
At minimum: (a) a valid Construction Permit, (b) the land title document (Chanote or Nor Sor 3 Gor), (c) a signed EIA approval report for projects above 80 units or in environmentally sensitive zones, (d) a current company extract from the DBD registry, and (e) architectural plans approved by the relevant authority.
Are there additional risks for international buyers converting foreign currency into THB?
Yes. Buyers converting foreign currency into THB should account for: exchange rate volatility across the transfer period, the requirement to obtain a Foreign Exchange Transaction Form (FETF) from a Thai bank for amounts that will be used to purchase property (this document is needed at title transfer), and differing tax treatment of rental income and capital gains in their home jurisdiction. We recommend buyers consult a tax adviser in their home country alongside Thai legal counsel.
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