Off-plan property in Phuket: 5 key risks and the full 2026 due-diligence checklist

Off-plan is the default format for investment transactions on the island. Staged payments: 1–3% reservation, 20–30% at SPA, 40–60% during construction, 10–20% at handover. Entry is 20–35% cheaper than completion price and, with a strong developer, ROI is 1.5–2× the completed-unit equivalent.

Developer economics work in favour of off-plan too — payments arrive before completion, which reduces bank-loan reliance and enables early-tranche discounts. But this is exactly where risk originates: some developers fund construction with buyer money and have no reserve if sales slow.

The worst-case scenario. If the developer goes bankrupt before handover, buyer funds without escrow are not fully protected — the Thai Condominium Act does not guarantee automatic refunds.

How to reduce: work only with developers with ≥3 delivered projects, bank confirmation of financing and, ideally, an escrow account. Verify MOC registration, absence of litigation, delivery history.

By law, 49% of a condominium's saleable area can be owned by foreigners on freehold. In popular projects this quota sells out in the first 6–12 months. Buyers arriving later are offered leasehold — legally weaker, but often sold under the same 'freehold' marketing.

Important: leasehold is a legal and workable structure — but it should be a conscious choice. If you were promised freehold and the SPA is leasehold, that's either agent error or intentional misrepresentation.

Typical off-plan delay in Thailand: 3–9 months past scheduled completion. Sometimes 12+ months. Impact on investor IRR: expected yield year N shifts to N+1.

What the SPA must contain: a specific Completion date, penalty clause (typically 5–15% p.a. on paid amounts for delay), buyer's right to terminate with refund after a defined delay window (12–24 months).

The show unit is a shop window — top furniture, curated lighting, styled accessories. Serial delivery frequently differs: different tiling, cheaper sanitary ware, 'equivalent-grade' material substitutions.

What the contract must fix: material specification (flooring, sanitary, kitchen, glazing), the developer's obligation to provide equivalents when a material is unavailable, warranty on finishes (1 year) and structure (5 years).

Snagging is mandatory: an inspection with a checklist before signing acceptance. Professional snagging companies charge 5–15k THB per unit.

A well-built project still misses its yield target if the operator is weak — poor marketing, low ADR, prolonged voids. Critical for hotel-managed properties where your income depends directly on the operator.

What to check: who the operator is (external brand like Dusit/Marriott/Wyndham or in-house), how many properties they manage, published occupancy and RevPAR figures for their existing portfolio.