In Q1 2026, our analysts track average asking prices for new condominiums in western Phuket (Bang Tao, Layan, Surin) at approximately 130,000 - 180,000 THB per sq m. At current exchange rates, that translates to roughly 3,600 - 5,000 USD per sq m depending on the district and unit tier. Buying at the off-plan stage typically allows entry at a 15-25% discount relative to a comparable completed unit in the same location, while spreading payment obligations across 18 to 36 months.
Our team has monitored construction pipelines in Phuket and Koh Samui for years and we consistently observe the same pattern: the off-plan discount is real, but only for buyers who understand payment-schedule mechanics, contract provisions, and the specific construction milestones where projects most commonly stall. The sections below break down each of those elements.
Quick answer
- Off-plan discount relative to the secondary market in 2026 is approximately 15-25% in Bang Tao, Layan, and Kamala (Phuket), and 12-20% in Bophut and Maenam (Koh Samui), based on our data sets
- Payment schedules typically consist of 5-7 tranches: reservation (1-3%), contract signing (20-30%), construction milestones (30-40%), and handover (30-50%)
- No escrow mechanism exists for foreign real estate buyers in Thailand - funds flow directly to the developer, so the quality of contract terms and the developer's track record are the primary protection layers
- Penalty clauses in well-drafted contracts should specify a minimum of 0.01-0.05% per day of the contract value for construction delays
- Termination rights with full refund should activate after delays exceeding 180-365 days, depending on the specific contract
- Typical construction timeline for a Phuket condominium: 24-36 months from EIA permit approval
Options and scenarios
Scenario A - Early stage (pre-launch or Phase 1)
The buyer enters at the very start of sales, often before the developer has obtained full EIA (Environmental Impact Assessment) approval. The discount can reach 20-25% relative to the projected market price of the completed unit. Capital exposure is at its highest: the reservation deposit (50,000 - 200,000 THB) and first tranche (20-30% of the purchase price) flow to the developer before foundations are poured. At this stage, we focus our verification on EIA permit status, land title validity (Chanote), and the developer's history of completed deliveries.
Scenario B - Construction stage (structural phase)
Entry while the structure is visibly rising. The discount narrows to 10-15%, but risk drops sharply - physical progress is verifiable and the developer has cleared roughly half the investment cycle. The remaining payment schedule runs approximately 12-18 months to handover. Based on our estimates, around 35-40% of off-plan transactions in Phuket during 2025 occurred at this stage.
Scenario C - Finishing stage (within 6 months of handover)
Lowest construction risk, but the off-plan discount compresses to 5-8%. Buyers typically pay a larger share upfront - often 50-70% at signing, with the balance due at handover. This option most closely resembles purchasing a ready-built unit, though it still allows some degree of interior customisation.
Discount mechanics - Bang Tao example, as of 2026
For a 45 sq m apartment in the Bang Tao corridor, our pricing estimates produce the following range:
- Phase 1 off-plan price: approximately 5,850,000 THB
- Structural-phase off-plan price: approximately 6,525,000 THB
- Secondary market equivalent (same district, completed unit): approximately 7,200,000 - 7,650,000 THB
The gap between Phase 1 entry and secondary market value is therefore roughly 1,350,000 - 1,800,000 THB. That is a material figure, but it carries both a time cost and developer-specific risk that must be weighed honestly.
Comparison table
| Parameter | Phase 1 (pre-launch) | Structural phase | Finishing phase | Secondary market |
|---|---|---|---|---|
| Discount vs. completed unit | 20-25% | 10-15% | 5-8% | 0% (benchmark) |
| Initial payment required | 25-35% of price | 40-55% of price | 50-70% of price | 100% of price |
| Time to handover | 24-36 months | 12-18 months | 3-6 months | Immediate |
| Capital at risk | High | Moderate | Low | None (unit exists) |
| Customisation options | Full | Partial | Minimal | None |
| Construction delay risk | High | Moderate | Low | None |
| Resale liquidity via assignment | Limited | Good | Very good | Not applicable |
Risks and mistakes
Stage 1 - Foundations and EIA permit
This is the most critical juncture. In Thailand, condominiums with more than 80 units, or those situated in designated environmental protection zones, require an EIA report - a process that typically runs 6-18 months. We monitor cases where developers begin sales before EIA approval is secured. If the report is rejected, construction cannot proceed, and the ability to recover payments depends entirely on the contract language. The essential protective clause: an unconditional right to full refund of all amounts paid if EIA approval is not obtained within a specified deadline.
Stage 2 - Structural construction
Delays at this phase most often stem from developer liquidity problems or material supply disruptions. Based on our observations, 15-20% of Phuket projects experience delays of more than three months during the structural phase. The protective provision to verify: automatic penalty accrual upon any breach of the agreed construction schedule.
Stage 3 - Fit-out and installations
A frequent and costly oversight: the finishing specification in the contract is too vague (for example, 'imported tiles' without brand, grade, or model reference). This gives the developer latitude to substitute lower-quality materials. We verify whether the contract includes a detailed specification annex with specific brands, model numbers, and quality standards.
Stage 4 - Technical inspection and handover
Buyers are legally entitled to refuse handover if the unit does not conform to the agreed specification. In practice, developers often apply pressure to sign the acceptance protocol quickly, citing the onset of management fee charges. We recommend engaging an independent building inspector at this stage. Typical cost: 15,000 - 30,000 THB.
Common mistakes made by international investors
- Failing to verify the land title type (Chanote versus Nor Sor 3 Gor) before committing funds
- Transferring purchase funds without obtaining a FET (Foreign Exchange Transaction) confirmation from the receiving Thai bank, which complicates future repatriation of proceeds
- Purchasing in a condominium where the foreign-ownership quota (49% of total floor area) is already approaching its limit - without checking the current Land Department register
- Relying on verbal assurances from a sales agent rather than having the full contract reviewed by an independent Thai-qualified lawyer
No escrow - what protection exists instead
Thailand does not have an escrow mechanism for foreign real estate buyers. All payments go directly to the developer. In our analysis, we identify three practical substitutes:
- Developer track record - the number of completed and delivered projects, any history of delays, and the financial standing of the developer entity as recorded with the DBD (Department of Business Development)
- Bank guarantee - some larger developers offer a bank guarantee covering buyer payments until title registration; this is uncommon, but worth negotiating for
- Contract provisions - precisely drafted refund conditions covering delay, buyer termination, and project non-completion, plus an arbitration clause as an alternative to general civil courts
FAQ
How large is the typical reservation deposit for an off-plan unit in Phuket?
Reservation fees generally run 50,000 - 200,000 THB. In premium projects in Layan and Surin we have recorded reservation figures of 300,000 THB. Reservation payments are typically non-refundable unless the contract explicitly states otherwise.
Can I sell an off-plan unit before handover?
Yes, assignment of contractual rights is possible provided the developer contract does not prohibit it. The assignment fee is usually 1-3% of the contract value or a fixed amount of 50,000 - 100,000 THB. We verify this clause before any contract is signed.
What taxes apply to an off-plan purchase in Thailand?
At initial registration of a new condominium, the transfer fee is 2% of the assessed value and is typically split equally between buyer and developer. Thailand has no stamp duty equivalent equivalent charged to buyers on new builds. Stamp duty (0.5%) and specific business tax (3.3%) are developer-side obligations.
How should international buyers transfer purchase funds to Thailand?
Funds must arrive in a Thai bank account from abroad, with the payment reference indicating 'for purchase of condominium'. The receiving bank then issues a FET (Foreign Exchange Transaction) form, which is a mandatory document for title registration. Transfers via regulated international payment services are accepted provided full FET documentation is preserved. Transfer costs are typically 0.3-0.7% of the amount sent.
What happens if the developer becomes insolvent during construction?
Thai law does not provide a statutory completion guarantee. The buyer becomes an unsecured creditor in insolvency proceedings. Recovery of payments in that scenario is difficult and slow. This is precisely why a thorough assessment of the developer's financial condition - registered capital, liabilities, and cash flow, all verifiable via DBD records - is non-negotiable before the first payment is made.
Is off-plan buying in Koh Samui worth considering in 2026?
The Koh Samui market is smaller than Phuket's, but price dynamics in Bophut and Maenam indicate year-on-year growth of approximately 8-12% (based on H2 2025 data in our tracking sets). Off-plan discounts in those districts reach 12-20%. Supply of new projects is constrained by strict environmental regulations, which structurally supports pricing.
How do we verify a developer before committing funds?
We cross-reference the DBD register, which is publicly accessible online. Key indicators we look for: registered capital above 100 million THB, no outstanding tax liabilities, and a minimum of 2-3 fully completed projects in the developer's portfolio. A site visit to those prior developments is a standard element of our due diligence process.
How long does it take to build a condominium in Phuket?
The typical cycle from EIA permit approval to key handover is 24-36 months. Smaller projects of up to 40 units can complete in 18-24 months. In 2025, we tracked an average delay of 3-5 months across projects in the western part of the island.
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