Which real estate in Thailand to choose: A new building or a ready-made apartment

Options for Thai real estate investment seem to be double-edged: Which way to go – from new off-plan property installment payment or hot deals with ready-made apartments? Your choice, of course, depends on your budget, risk appetite and investment goals. Here’s a breakdown of the advantages, disadvantages and big-picture considerations, to help you decide.

Off-Plan Properties in Thailand

New off-plan projects – typically sold during construction – attract buyers looking for lower initial costs and long-term appreciation. Developers usually only take a small amount as a reservation (e.g. 100,000 THB), and the payments are staggered throughout the construction of the project. That relieves cash flow, particularly for foreign buyers. Prime locations such as Phuket’s Bang Tao or Bangkok’s Sukhumvit tend to promise appreciation as infrastructure develops. Some developers even offer the option to customize certain layouts or finishes.

Risks, however, are considerable. Delays, shoddy construction quality or developer bankruptcy can leave buyers stranded, because Thailand has weak escrow protections. Financing is also tricky – local banks won’t usually finance unfinished projects, requiring buyers to rely on cash reserves or overseas loans. Moreover, there is oversupply in tourist hot spots like Pattaya, which could reduce rental yields.

Best suited for: Patient investors with liquidity who believe in well-established developers (listed firms on the Stock Exchange of Thailand).

Ready-Made Apartments in Thailand

Ready-made units provide immediate ownership, which is appealing to buyers prioritizing stability. You can view the unit, haggle over prices, and rent it out on the spot. For example, UOB or ICBC offer mortgages (50–70% LTVs) for finished condos, alleviating the burden of upfront costs. Sellers might also offer bonuses or perks such as waived transfer fees.

The trade-off? A larger upfront cash outlay and depreciation risk. Units may also be older and may lack amenities or require renovations. Be sure also to verify that the condominium unit is within the 49% foreign ownership allowance to avoid legal complications.

Best suited for: Investors seeking safety or motivated landlords looking to rent out fast in regions such as Phuket or Bangkok.

Key Factors to Consider

• Location: Choose prime locations (e.g., Bangkok CBD, Phuket beaches) for high resale value.
• Developer Track Record: Validate the developer's reputation for off-plan purchases and engage a lawyer to review contracts.
• Financing: Off-the-shelf units qualify for local mortgages; off-plan purchases are usually cash only.
• Legal Aspects: Check foreign ownership requirements and set aside funds for taxes (e.g., a 2% transfer fee, and 0.5% stamp duty).
• Market Trends: Properties in tourist areas are at risk of oversupply; urban locales are likely to have more stable demand.

Turning to risk-averse buyers, ready-built apartments offer security and quicker returns. Investors focused on capital appreciation may prefer off-plan properties to realize appreciation, although this involves greater risk.

You’ll either be reaching for long-term gains or seeking immediate peace of mind – and by weighing these factors, you’ll approach Thailand’s dynamic property market with confidence. Despite your choice, DDA Real Estate is ready to offer you any offer. Buy real estate in Thailand with us.