Thailand: What Makes Thai Development Projects More Attractive Than Secondary Properties?
Real estate suitable for foreign investors in Thailand has been evolving for about 20 years. The properties developed in the early stages are significantly different from the apartments and villas that have been built in recent years. Today, you can even purchase real estate in Thailand online, eliminating the need to visit the country. However, before buying an apartment, it’s important to consider whether it’s more advantageous to invest in properties within development projects or in secondary properties.
CONTENT:
- Real Estate in Thailand
- What Makes Development Projects More Attractive Than Secondary Properties?
- Risks of Buying Secondary Properties
- Why Has Demand for Expensive Villas in Thailand Increased?
- What Villas Are Currently for Sale in Thailand?
- What Factors Influence House Prices?
- Purchasing in Instalments
- Sales of Apartments in Development Projects in Thailand
REAL ESTATE IN THAILAND
There are numerous reasons to invest in apartments and villas in Thailand in 2024:
- Stability of the national currency and economy;
- Quick adaptation for migrants and welcoming local residents;
- The ability to visit the Kingdom for holidays at any time of the year;
- Well-developed resort infrastructure;
- Increasing demand for local apartments and villas, allowing for profitable resale opportunities.
According to the Central Bank of Thailand, real estate values in the Kingdom have increased by 4-5% annually over the past decade, partly due to growing demand.
Currently, the most profitable overseas real estate investment is in Thai development projects.
What Are the Advantages of Investing in Development Projects Over Secondary Properties?
The real estate market in Thailand is diverse, but most investors prefer to invest in development projects, as these properties offer a greater opportunity for capital appreciation.
Purchasing an apartment during the excavation phase can be 30-40% cheaper than its value after the property is completed.
There are several additional advantages to investing in development projects:
- Many developers offer interest-free installment payment plans. In contrast, secondary properties can only be purchased after paying the full amount upfront, as local banks do not offer mortgages to foreigners.
- New projects often include a variety of modern infrastructure: indoor and outdoor parking, swimming pools, saunas, children's play areas, gyms, fitness studios, tennis courts, and conference rooms, with residents having 24/7 access to these facilities.
- New buildings are sold on a turnkey basis, meaning you buy the apartment or villa fully finished and equipped with brand-new furniture and appliances. With secondary properties, the furniture is often used and not in new condition.
Risks of Buying Secondary Properties
The main risk of buying a secondary property is the potential for hidden defects that are not immediately noticeable.
Experts recommend checking the entire history of the property when purchasing secondary homes or apartments. If not, buyers may encounter unpleasant surprises after signing the contract. Real estate agencies typically provide this service, but it does add another cost to the purchase process.
Why Has the Demand for Expensive Villas in Thailand Increased?
For those planning to move to Thailand for long-term residence, buying property can help secure a long-term visa.
To qualify, buyers must purchase a property valued at a minimum of $500,000. This investment allows them to obtain a visa valid for up to 10 years.
What Villas Are Currently for Sale in Thailand?
- A villa of 522 m² in Phuket is listed for $575,000.
- A house of 3,680 m² in Phuket costs $6,800,000.
- A house of 70 m² in Phuket can be purchased for $157,000.
- A villa of 133 m² in Bang Sare, located 30 minutes from Pattaya, is listed for $523,000.
- A villa of 4,500 m² in Phuket is priced at $11,300,000.
- A house of 1,050 m² in Surin (northeast Thailand) is available for $4,500,000.
What Does the Price of a House Depend On?
The price of a house is influenced by several factors:
- The location of the property;
- The size of the villa;
- The distance from the house to the seashore and the village center;
- The date of the property’s completion;
- The urgency of the sale.