As an investment, buying a condo in Phuket makes obvious sense. Perhaps the most compelling reason is that foreigners may legally own freehold condominiums in Thailand. House and villa ownership, on the other hand, is a little more complicated.
Given the choice, most people make the decision to own freehold condos.
It is sometime difficult to escape the image of a condo as being a bit cramped, and stuck between four walls. But the Phuket condo market offers a wide range of units for sale, many of which defy this misconception.
Some Luxury Condominiums in Phuket are extremely spacious, often comparable to a villa. Occasionally, you will find a condo with its own private swimming pool and a small garden or flower bed.
Of course there “tower blocks” of condos, but there are also many low rise buildings, and even some duplexes.
Why Do So Many People Like to Buy Condos in Phuket
Everything comes down to personal taste, but it is easy to see why so many people actually prefer condo living to other residential options.
Condos in Phuket are attractive to foreigners for the following reasons:
Phuket Condos Allow Full Foreign Freehold Ownership
As mentioned above, foreigners in Thailand are not allowed to own landed property, such as villas and houses. However, they can own condos in their own name – with a full titled deed of ownership.
Phuket Condos are an Affordable Way to Own in Prime Residential Areas
Condos allow owners to live in high-demand areas where a house or villa may not be affordable. A single unit home in the same area could be well outside their budget.
But a condo may enable them to own a piece of real estate in desirable West Coast Phuket location.
Condos are Low Maintenance Compared to Houses & Villas
Taking care of a large building is obviously very expensive. But with a few hundred owners all “chipping in” the costs become considerably more affordable.
Every condo requires owners to pay a Common Area Maintenance fee (CAM). The CAM covers all the costs associated with running the resort. The fee is usually paid monthly, and covers all ordinary expenses such as salaries for staff, cleaning, etc., but will also cover the cost of keeping everything well-maintained
You can learn more about what is the common area and the common area fee here:
What is the Common Area and the Common Area Fee?
For any major work that might need to be done, owners will normally pay into a sinking fund. This is like a reserve fund which helps to cover any extra ordinary or emergency work that needs carrying out.
You can learn more about sinking funds in the following article:
What is a Condominium Sinking Fund?
Life in the tropics means things do wear out and need replacing, so a sinking fund is essential. And even if the sinking fund runs low and owners need to contribute a little more, they know that the costs will always be shared amongst all the owners in the resort.
That is one of the great things about a condo: the fractional ownership of the common area enjoyed by each owner translates into a fraction of the expenses per unit when exceptional repairs to the common area are required.
Phuket Condos Have Onsite Amenities like Gym and Swimming Pool
One of the nicest things about a resort condominium is that they all have great swimming pools. Being able to have a swim before breakfast or catch a tan anytime during the day is a treat.
Some condominiums also have rooftop swimming pools, complete with pool bar and restaurant. So if your condo also has a west-facing sea view, you can enjoy a cocktail and watch the sun go down over the Andaman Sea.
Most resort condos these days also come with a fully equipped gym. Whether you just want a few minutes on the treadmill, or you feel the need to build those muscles to complement your tan, having a gymnasium your door step is a big plus point for condos owners.
Owning a Phuket Condo Means Less Responsibility
When you own a condo, you don’t really have to do much in the way of upkeep. To emphasize that fact, America’s first modern-day condo (in Salt Lake City) was sold under the marketing campaign: “No More Yardwork.”
Of course, you still need to take care of the interior decoration and furniture. But most of the responsibilities for the resort itself lie with the management company and/or the Condominium Juristic Person.
They will take care of the upkeep of the building as well as tending the gardens, maintaining facilities and removing trash from the resort.
You just have to pay your monthly CAM fee.
Condos Mean No Worries When You are Away
Condos are ideal for people who travel a lot, or are only on the island for a few months every year, and have to lock up their unit until they return.
Most people who are on the island for a few months in the high season, just tidy up, pack everything away, turn off the electric, and possibly pay a maid to come in once every couple of weeks to air the place out and give it a clean.
Condos are perfect second homes. They can stay empty for months without owners having to worry too much about the state of the home they will return to.
That peace of mind does not come with having a house or villa.
Better Security – Whether You are There or Not
Compared with many other destinations around the world, Phuket today is a relatively safe place. But there’s no doubt that you get a much greater sense of security from living in a condo than a villa or house.
For a start, most condominium developments have key card entry for the main building and/or the elevators. Some have a reception area and most will also cover cost of a security guard or two at night to patrol the resort.
This is better security than most other types of property will offer.
Condos in Phuket Offer Great Returns for Investors
The financial attractions of a condo investment are perhaps one of the main reasons people are buying in Phuket. As the tourism sector keeps expanding, owners are being rewarded with consistent rental income.
New condos usually offer buyers a guaranteed return for a specific time period. This is usually between 6-8% p.a. and for a period of up to 10 years.
Even if any guaranteed period expires, most resorts have well-managed rental pools generating solid returns for owners (when they are not staying in the condo themselves).
Take a look at our best investment properties in Phuket:
Best Investment Properties in Phuket
People Get to Know Their Neighbours
In many developments on the island, owners get to know each other. Every condo has common areas, some even have a bar. So if you don’t meet people around the pool or in the gym, you may join them for a nightcap or two in the evenings.
Condos Mean You Don’t Have to Do All the Hard Work
For home owners who just don’t like to do a lot of work around the home, a condo is perfect. The management take care of the hallways and the exterior of the resort.
Whether it’s fixing or cleaning you’ll not be asked to get involved. Getting repairs done, painting or any form of upkeep is nicer when you are watching it being done, rather than doing it yourself.
As mentioned above, when you live in a condo your community/common area fees over all these mundane and time consuming jobs.
All you have to do is replace the lightbulbs, and when it needs it every few years, give the interior a lick of paint.
Condos Don’t Require Gardening or Pool Duty
Gardens need tending and swimming pools need looking after. But in a condo your management company will take care of everything.
Ok, so maybe you enjoy getting on your hands and knees and weeding the garden, or doing the regular pool cleaning and checking the chlorine levels in the water. But in this tropical climate, those otherwise enjoyable maritime chores can get very tiresome, very quickly.
If you come to Phuket to relax, wouldn’t you much prefer seeing all the manual labour taken care of for you? Then you have more time to do whatever you want on the island.
Condos Also Give You The Right To Vote
Owners of freehold condominiums get voting rights for any decisions made regarding the condo. They can also participate in any onsite meetings that are held, and may even be able to participate in the running of the resort.
Phuket Condos Also Have Extremely Competitive Pricing
Last and certainly not least, we have to mention this. There’s no disputing the fact that condominiums in Phuket are extremely good value for money compared with other holiday destinations.
In fact, even looking at a price per square metre across comparable locations, it is one of the most affordable places to buy real estate across the world.
You can take a look at all the condominiums for sale in Phuket here:
Condominiums For Sale in Phuket
There are numerous benefits of buying a condominium in Phuket. Here are some of the attractions for people considering a condo purchase:
- Full foreign freehold ownership
- Well-priced units in prime residential areas
- Onsite amenities like gym, swimming pool and bars
- Low maintenance compared to houses/villas
- Much better security
- You don’t have to do any of the hard work
- You can get to know your neighbours
- All the costs are shared
- You get the right to vote
- Phuket offers great value
You may also enjoy some of our other Phuket real estate articles:
Owning a Freehold Condominium through an Offshore Company
Owning a Freehold Hotel-Licensed Condominium in Thailand
The Things All Investors Should Know About the Condominium Act
China’s Spending Spree on Phuket Real Estate
Reasons to Invest in Phuket Property for New and Experienced Investors
An Overview on Phuket Property Prices
Illegal Home Ownership in Thailand – An Inconvenient Truth
Foreign Freehold Land Ownership by Making a Prescribed Investment or Through the Board of Investment Scheme
Buying Freehold Villas or Houses in the Name of a Thai Spouse