Which Type of Property is Better to Buy in Thailand: Off-plan or Completed?

Nov. 19, 2024

In Thailand, the culture of ‘pre-sales’ property purchases, often referred to as ‘off-plan’ purchases, is well-established. By the time many projects are completed, as many as 90% of the units may already be sold. This is especially true of premium, desirable developments with prime locations and high-end specs that appeal to a wide range of investors and potential residents. 

Is this a risk worth taking for investors, or is it a better strategy to purchase completed apartments and villas? This blog explores the advantages and disadvantages of both approaches to give you as much information as possible before you take the plunge and buy property in Thailand. 

Completed or Off-plan Property in Thailand: Which Type is Better to Buy?

In the long-standing debate about off-plan vs completed property in Thailand, factors on both sides appeal to investors and potential residents. The following sections discuss the advantages and disadvantages of these different property investment strategies in an attempt to shed light on a subject that can be complex and bewildering at first glance.

Advantages of Buying Off-Plan Property in Thailand

Off-plan sales of apartments or villas begin long before construction is completed and occasionally before it has even started. The advantages of buying off-plan property are as follows:

• Unit choice
  Early buyers can access the prime units in any off-plan development. The most desirable ones almost always sell first, and waiting until construction is completed typically means fewer options, if any units remain at all. 

• Lowest possible prices
  Although the prices of off-plan villas and condominiums in Thailand may not be what we would consider ‘low’, they are as low as they will ever be during the off-plan stage. Developers often offer discounts to attract early buyers to off-plan luxury villas in Phuket and beyond to help raise the capital they need to complete construction.

• Instalment payments
  Developers typically offer interest free instalment payment plans over the entire construction period (and in some cases even after construction). This takes the pressure off the buyer, allowing them to raise finances incrementally rather than in one lump sum.

• Customisation options
  Although not guaranteed, if you work with a flexible, amenable property developer, you may be able to request specific features and custom options for your chosen off-plan property in Thailand. Some aspects you may have control over include:          
      - General layout 
     -  Material specifications, style and decorative finishes
      - Fixtures and fittings

• Property resale appreciation
  As construction progresses, potential buyers begin to see the vision and can assess the quality of work to that point. If it is as described, this inevitably drives demand, and the value of any property purchased early may have already grown. As with all investments, this is not guaranteed, but the Thailand property market is remarkably buoyant and shows no signs of losing pace. In our own 15  years of experience in Thailand Real Estate, the most profitable investments amongst our clientele are the ones made off plan or in the early construction stages.

Disadvantages of off-plan villas in Thailand

No honest assessment of off-plan vs completed property in Thailand would be genuine without mentioning the bad, not just the good. Some of the downsides to be aware of when opting for an off-plan property in Thailand include:

• Potential construction delays
  Construction delays are not uncommon and can significantly affect plans to sell, lease, or inhabit the property. To mitigate this risk, our advice would be to look at the developer's past records and ask more information from Sunway Estate brokers, as we are constantly dealing with and observing real estate transactions in different stages.  

• Discrepancies between the described property and the end result
  As you’re putting your money down to buy a property based on nothing more than a showroom, or in some cases only plans, models, and sales pitches, the final product might fall short of your expectations. This perfectly illustrates why it is so critical to use trusted, reputable professional help from companies like Sunway Estates when you decide to buy property in Thailand.

• Market fluctuations
  Although the Thailand property market is exceptionally robust, there are no guarantees that the value of an off-plan property will rise. This is especially true if you fall foul of the last point and the finished property is not up to scratch. Like all markets, values rise and fall for many reasons and even commodities as desirable as Thailand properties are not immune to seasonal changes, macroeconomic or other factors.  

Advantages of Buying Completed Property in Thailand

The advantages of buying completed property in Thailand are as follows:

• No nasty surprises
  Because you can visit the property and see the final product, relying on the developer's pre-build plans is unnecessary. You can thoroughly inspect the property before purchasing without being subjected to construction delays or unwanted feature changes.

• Immediate access
  Most completed property in Thailand is ready for you to move in or start renting out immediately. This helps to offset the higher initial costs.

• Established neighbourhoods
  Among the completed property advantages many people neglect to consider is that the surrounding neighbourhood is typically long-established with practical infrastructure and desirable amenities.

Disadvantages of Completed Property in Thailand

While there are significant completed property advantages, there are also some disadvantages to consider, namely:

• Higher costs
  Although dependent on other aspects of the property, completed properties are generally more expensive than off-plan ones.

• Minimal scope for customisation
  Completed property in Thailand is likely to be sold as-is, and there will be little to no scope for making changes until the transaction is completed. 

• Ageing features, technology, and design appointments
  Older villas may not have state-of-the-art amenities, stylish interiors, or optimised layouts. However, as a caveat to this point, jaded interiors and unimpressive amenities will typically mean a lower asking price and the potential for negotiation. 

Ultimately, the ideal choice for each property buyer depends on their financial situation, preferences, requirements, and tolerance to risk.

Buy Property in Thailand with Sunway Estates: Your Trusted Experts

If you want to learn more about Sunway Estates and how we can help you efficiently and safely buy property in Thailand, please reach out to our real estate investment experts as soon as possible. Discover if an off-plan or completed property in Thailand is the best choice for you. Explore investment options with Sunway Estates—find your ideal property today!