Between 2023 and 2025, our analysts tracked more than 140 new condominium and villa projects registered in Phuket alone and aimed at foreign buyers. A meaningful share of those projects never progressed beyond the foundation stage. For any internationally-based investor considering an off-plan purchase, the central question is the same: how do you distinguish a credible developer from one that will absorb your deposit and stall indefinitely?
At Tajlandia.com we apply a seven-step due diligence procedure before any project enters our published shortlists. The sections below describe each step with concrete warning thresholds, so that readers can either replicate the analysis independently or commission it from our team.
Quick answer
- As of 2026, over 30% of new villa projects in Phuket are financed exclusively from buyer deposits with no bank credit - the highest risk profile for a purchaser
- Average completion delay across Koh Samui projects finished in 2024-2025 was 4.7 months, based on our monitoring of 38 projects
- Thailand has no statutory buyer-protection fund or equivalent of a developer escrow regime for foreign purchasers; the sole practical safeguards are contract structure and the developer's balance sheet
- A valid building permit (Ror. 1) and an Environmental Impact Assessment (EIA) for projects above 80 units are non-negotiable prerequisites; absence of either disqualifies a project from our shortlists
- Any payment schedule that requires more than 50% of the purchase price before structural completion is treated as a red flag in our framework
- Track-record verification covers a minimum of 3 completed projects with documented handover dates
Options and scenarios
Scenario A: established developer with bank financing
This profile carries the lowest risk. The developer has completed at least three projects within the past seven years in Phuket or Koh Samui, with historical delays not exceeding three months. A Thai commercial bank - Bangkok Bank or Kasikornbank, for example - has extended a construction loan, which means an independent financial institution has already conducted its own credit and project assessment. In our data sets, this profile accounts for roughly 15-20% of the active supply in Phuket.
Payment schedules in this scenario are typically structured across five to seven tranches, with the final instalment (30-40% of the price) due at key handover and title registration. The developer discloses the building permit number and holds a registered Chanote title to the land parcel.
Scenario B: mid-scale developer with mixed financing
The developer has one or two completed projects. Construction is funded partly from buyer payments, partly from equity. Historical delays fall in the three-to-six-month band. This profile requires deeper on-the-ground analysis: our team inspects the condition of previous projects in person, examining facade quality, MEP installations and common areas two to three years after handover.
For this scenario we recommend negotiating a contractual penalty for delay of 0.05-0.1% of the contract value per day and capping pre-structural-completion payments at a maximum of 40% of the price.
Scenario C: first-time developer or project without a track record
This represents the highest risk tier. The developer has no completed projects in Thailand, or the entity is a special-purpose vehicle (SPV) formed solely for the development in question, with 100% of construction financed by buyer deposits. Delay risk is unquantifiable because there is no comparative baseline.
Our team does not recommend projects in this category to buyers unless exceptional circumstances apply - for instance, the developer is a subsidiary of a listed company or holds documented international experience with references that can be independently verified.
Comparison table
| Parameter | Scenario A - low risk | Scenario B - medium risk | Scenario C - high risk |
|---|---|---|---|
| Completed projects | 3 or more | 1-2 | 0 |
| Historical delay | Up to 3 months | 3-6 months | No data available |
| Construction financing | Commercial bank loan | Mixed (equity + deposits) | 100% buyer deposits |
| Payment before structural close | Up to 30% of price | Up to 40% of price | Often above 50% |
| Penalty clause in contract | Yes, 0.05-0.1% per day | Negotiable | Often absent |
| Building permit (Ror. 1) | Issued before sales launch | Issued or in process | Frequently missing |
| Land title (Chanote) | Verified | Verified | Requires independent check |
| Our team recommendation | Recommended | Conditional | Not recommended |
Risks and mistakes
- Trusting renders and marketing materials - in our review practice we regularly encounter projects where delivered quality is two to three grades below the visualisations. We always inspect the developer's previous completions on-site before any listing decision
- Skipping land title verification - Phuket operates with four categories of land documentation (Chanote, Nor Sor 3 Gor, Nor Sor 3, Sor Kor 1). Only a full Chanote (Nor Sor 4 Jor) confers complete ownership rights supported by a precise cadastral survey. The remaining document types carry meaningful boundary and rights risks
- Assuming buyer deposit protection analogous to regulated markets - Thailand has no statutory developer act protecting foreign buyers, and no regulatory scheme that holds buyer deposits in trust. Funds paid to a developer go directly into the developer's own account. The contract structure is the primary line of defence
- Underestimating currency risk - buyers typically transact in THB or USD. The THB/USD rate, and the effective cost in any home currency, can shift materially over a multi-year construction period. Based on market estimates, a 5 million THB payment can see a six-figure swing in home-currency terms across a single construction cycle
- Overlooking recurring holding costs - common area fees in Phuket run at 40-120 THB per square metre per month depending on project grade. This is a fixed outgoing independent of rental occupancy, and it compounds over a hold period
FAQ
How can we verify whether a developer in Thailand holds a valid building permit?
The building permit (Ror. 1) is a public document issued by the relevant local administrative body, either the Tessaban municipality or the Or Bor Tor sub-district authority. Our team cross-checks the permit number directly with the issuing office. Any developer who declines to share a copy on request triggers an immediate escalation in our review process.
How many completed projects must a Phuket developer have before we consider them credible?
Our methodology sets a minimum threshold of three completed projects delivered within the past seven years. For units priced above 10 million THB, we raise that threshold to five completed developments.
Is there any form of buyer deposit protection for foreign purchasers in Thailand?
No equivalent statutory protection exists for foreign buyers in Thailand. Payments made by the purchaser transfer directly to the developer. The contractual safeguards - milestone-linked payment tranches, daily penalty clauses for delay, and explicit refund conditions - are the primary instruments available to the buyer.
What payment schedule structure is considered safe for an off-plan purchase?
The framework we apply is: 10-15% at contract signing, 20-30% in milestone-linked tranches during construction (foundation, structural close, roofing, fit-out), and 30-40% at handover and title registration. Any schedule demanding more than 50% before structural completion is classified as a red flag in our analysis.
How do we assess the quality of a developer's previous completions?
We conduct on-site visits to completed projects two to three years after handover. The inspection covers facade condition, electrical and plumbing systems, common area finishes, pool infrastructure and access roads. We also gather maintenance frequency data from building managers, which serves as a proxy for construction quality.
What is the typical completion delay for a Phuket off-plan project?
Based on our monitoring of 52 projects completed between 2023 and 2025, average delay was 3.8 months in Phuket and 4.7 months in Koh Samui. Delays exceeding six months occurred in 22% of the projects analysed.
What contract clauses matter most when buying from a Thai developer?
The four provisions we prioritise are: a daily penalty for delay (minimum 0.01% of the paid amount per day), explicit refund conditions and timelines if the project is not completed, a finishes specification schedule attached as an annex, and a dispute resolution clause (we prefer arbitration seated in Thailand).
Which land title documents are acceptable for an investment purchase in Phuket?
Only a Chanote (Nor Sor 4 Jor) provides full ownership rights backed by a precise geodetic survey. Nor Sor 3 Gor documents are conditionally acceptable but require additional boundary verification. Nor Sor 3 and Sor Kor 1 documents should not serve as the basis of an investment transaction.
How long does it take to resell a property on the secondary market in Phuket?
In our 2025 data sets, average secondary market sale time in Bang Tao and Layan ran at 8-14 months. In Karon and Nai Harn that figure extended to 14-20 months. In Bophut and Maenam on Koh Samui, we monitor ranges of 10-16 months. Liquidity is a material factor in assessing exit risk.
Can a buyer inspect the construction site during the build phase?
Yes, and we consider site visits an essential part of the purchase process, not an optional extra. Our on-the-ground team in Phuket and Koh Samui can accompany buyers during inspections and provide a written progress report. We schedule visits at minimum two times per project, spaced six to eight weeks apart, and compare observed progress against the declared construction programme.
Researching property in Phuket or Koh Samui? Get in touch - our analysts will prepare a data brief for your shortlisted location.