In Q1 2026, our analysts estimate that off-plan residential property in Phuket trades at a 15-25% discount relative to comparable ready-built units on the secondary market, with the spread varying by district. In Koh Samui the gap is narrower - approximately 10-18% - reflecting a smaller pipeline of developer-launched projects. That price differential is the primary draw for internationally mobile investors, but its real value depends entirely on the payment structure and the contractual protections embedded in the purchase agreement. Below we break both down systematically.
We track construction progress across key locations: Bang Tao, Layan, Kamala and Surin in Phuket, and Bophut, Maenam and Lamai on Koh Samui. Drawing on data from several dozen active projects, we examine how phased payment schedules affect a buyer's capital exposure at each stage - and which contract clauses actually carry protective weight.
Quick answer
- A typical Thai off-plan payment schedule is divided into 5-7 tranches spread across an 18-36 month construction period
- The reservation deposit is generally 50,000-200,000 THB (roughly USD 1,350-5,400 at March 2026 rates); the contract-signing instalment is usually 25-35% of the purchase price
- Off-plan discounts in Bang Tao and Layan (Phuket) run approximately 15-25% versus ready-built comparables in the same districts (Q1 2026 data)
- In Bophut and Maenam (Koh Samui) the discount is narrower: 10-18% as of Q1 2026
- Thailand has no statutory escrow or deposit-protection mechanism for foreign property buyers - all instalments go directly to the developer
- The buyer's primary legal protection rests on contract language: delay penalties, termination rights, and any completion guarantee offered by the developer
Options and scenarios
Typical off-plan payment schedule - stage by stage
The following model reflects the structures we monitor across Phuket and Koh Samui projects in 2026. Percentage figures are indicative; individual developers may vary by a few points.
Stage 1 - Reservation. A fixed-amount deposit of 50,000-200,000 THB secures the unit during the contract negotiation window (typically 14-30 days). In most projects this fee is non-refundable once paid.
Stage 2 - Contract signing. An instalment of 25-35% of the purchase price, net of the reservation deposit, is due at signing. This is the moment the buyer's capital exposure rises sharply - more than a quarter of the property value is committed, often before ground has been broken.
Stage 3 - Foundation completion and EIA clearance. A further 10-15% is triggered here, bringing cumulative payments to roughly 40-50% of the purchase price. The Environmental Impact Assessment (EIA) is a formal requirement for larger developments; if it has not been obtained before sales launch, it can delay construction by 3-6 months.
Stage 4 - Structural completion. Another 10-15% tranche, lifting cumulative exposure to 50-65%. Based on our monitoring, this is statistically the stage with the highest incidence of delays - driven by material supply disruptions and monsoon-season weather conditions (May through October in Phuket).
Stage 5 - Finishing works. A further 10-15% brings total paid to 60-80% of the price. Finishing-stage disputes over specification adherence and workmanship quality are common and are best managed via a pre-agreed finishing schedule attached to the contract.
Stage 6 - Handover. The final instalment of 20-35% is due upon completion. Only after this payment is the freehold title transferred (for condominium units within the 49% foreign quota) or the long-term lease agreement signed (leasehold structures for villa land).
Capital exposure in numbers - a worked example
Consider an off-plan studio in Bang Tao priced at 4,500,000 THB (approximately USD 121,500 at March 2026 indicative rates).
- Month 0-1, reservation and contract signing: 1,125,000-1,575,000 THB paid (25-35% of price)
- Month 6-9, foundation complete: cumulative outlay approximately 2,025,000 THB (45%)
- Month 12-18, structural completion: approximately 2,700,000 THB committed (60%)
- Month 18-24, finishing: approximately 3,375,000 THB paid (75%)
- Month 24-30, handover: remaining 1,125,000 THB due (final 25%)
In this model, the buyer has nearly half their capital deployed within the first 6-9 months - holding nothing more than a contractual promise. This is the fundamental risk asymmetry that the sections below address.
Off-plan discount versus secondary market - district-level data
Our analysts verify asking and transaction prices in the field. The figures below are indicative ranges as of Q1 2026.
- Bang Tao (Phuket): off-plan studios from approx. 4.0-5.5 million THB; secondary-market equivalents 5.5-7.0 million THB. Implied discount: approx. 20-25%
- Layan (Phuket): off-plan villas from approx. 12-18 million THB; completed villas 16-24 million THB. Implied discount: approx. 18-25%
- Kamala (Phuket): off-plan condominiums from approx. 5.0-7.0 million THB; completed units 6.5-8.5 million THB. Implied discount: approx. 15-20%
- Bophut (Koh Samui): off-plan villas from approx. 8-14 million THB; completed villas 10-16 million THB. Implied discount: approx. 12-18%
- Maenam (Koh Samui): off-plan condominiums from approx. 3.5-5.0 million THB; completed units 4.0-5.8 million THB. Implied discount: approx. 10-15%
The discount is not a guaranteed gain. It is realised only if the project completes on schedule, meets the specified standard, and secondary-market prices remain stable or rise over the construction period.
Comparison table
| Parameter | Early stage (reservation to foundations) | Mid stage (structural completion) | Late stage (finishing to handover) |
|---|---|---|---|
| Cumulative payment (% of price) | 35-50% | 50-65% | 75-100% |
| Time from launch | 0-9 months | 9-18 months | 18-30 months |
| Primary risk | Missing permits or EIA, developer insolvency | Construction delays, material cost escalation | Specification disputes, snagging disagreements |
| Key contract clause | Refund conditions if permits are not obtained | Delay penalty clause (typically 0.01-0.1% per day) | Handover protocol with formal snag list |
| Buyer negotiating leverage | Highest - developer needs pre-sales to secure financing | Moderate | Lowest - most capital already paid over |
| Assignment (resale before handover) | Limited - insufficient project data for buyers | Possible if the contract includes an assignment clause | Easiest - construction progress is visible |
Risks and mistakes
No statutory deposit protection - practical implications
Thailand does not operate a statutory buyer-deposit protection scheme for foreign property purchasers. Every instalment is paid directly into the developer's account. If a developer becomes insolvent before title transfer, the buyer's claim ranks as an unsecured creditor. Based on our on-the-ground monitoring, at least several projects in Kamala and Rawai (Phuket) experienced delays exceeding 12 months during the 2023-2025 period.
Common mistakes by internationally based investors
- Skipping developer due diligence. We verify completed project history, corporate structure via Thailand's Department of Business Development (DBD) filings, and references from previous buyers before recommending any developer
- Accepting a contract without a delay penalty clause. Without a recorded penalty - typically 0.01-0.1% of the contract value per day of delay - the buyer has no contractual leverage to accelerate completion
- No termination clause. The contract should specify clearly at what point of delay (usually 90-180 days beyond the agreed handover date) the buyer may withdraw and recover paid instalments
- Underestimating currency risk. Based on our estimates, the THB/USD rate shifted by over 8% in the 12-month period to March 2026; tranched payments spread over 2-3 years carry meaningful foreign-exchange exposure for non-THB-based buyers
- Overlooking acquisition costs beyond the purchase price. Transfer fee (approx. 2% of appraised value), sinking fund contribution, and Common Area Maintenance (CAM) fees can add 3-6% to the effective cost of acquisition
Completion guarantees - what to look for
Some Phuket developers include a corporate guarantee or personal guarantee from the company's principal in the sale-and-purchase agreement. In our data sets, such guarantees carry real weight only when the guarantor holds net assets materially exceeding the project liabilities. Without independent legal review of the guarantor's financial position, such clauses can be largely symbolic.
FAQ
What is the typical reservation deposit for an off-plan property in Phuket?
Most projects set the reservation fee at 50,000-200,000 THB (approximately USD 1,350-5,400 at March 2026 indicative rates). For premium villas in Layan or Surin, we see reservation amounts reaching 500,000 THB. The reservation is almost always non-refundable.
Can I resell an off-plan unit before handover?
Yes, provided the sale-and-purchase agreement includes an assignment clause. Developers typically charge an assignment consent fee of 1-3% of the purchase price. Assignments are easier to execute at advanced construction stages, when the incoming buyer can assess visible progress on site.
What delay penalty rate is standard in Thai off-plan contracts?
The most common range we observe is 0.01-0.1% of the contract value per day of delay beyond the agreed completion date. Developers sometimes propose the lower end of this range (0.01%); we recommend negotiating upward before signing, as the penalty rate is rarely revisited after execution.
Can a foreign national buy an off-plan villa in Phuket under freehold title?
No. Thai law prohibits foreign nationals from owning land outright. Off-plan villas are acquired through a leasehold structure (typically 30-year terms, renewable) or via a Thai-registered company. Freehold condominium units are available to foreign buyers, subject to the building's foreign ownership quota not exceeding 49% of total floor area.
How does the technical handover inspection work?
Handover involves a walkthrough inspection, preparation of a snag list (a written record of defects and unfinished items), and agreement on a remediation timeline - usually 30-90 days. Our analysts consistently recommend engaging an independent building inspector for this stage; typical cost is 10,000-25,000 THB depending on property size.
How long does construction typically take for off-plan projects on Koh Samui?
For condominium projects in Bophut and Maenam, we monitor average completion timelines of 18-28 months. Villas generally take 12-24 months. The Koh Samui monsoon season (October through December) frequently adds 2-4 months to the practical schedule.
Are buyer payments legally protected in Thailand?
There is no statutory mechanism equivalent to a deposit-protection scheme for off-plan buyers in Thailand. Protection is entirely contractual: refund conditions upon termination, delay penalty clauses, and any developer guarantee. This makes independent verification of the developer's financial standing a non-negotiable step before committing capital.
What taxes and fees apply at the point of title transfer?
For condominium freehold transfers, standard costs include a transfer fee of approximately 2% of the Land Department's appraised value and a stamp duty of 0.5%. Specific Business Tax (SBT) and withholding tax may also apply on the seller's side. In our data sets, approximately 60% of Phuket developers negotiate a 50/50 cost split with the buyer - this is worth raising explicitly during contract negotiation.
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