Most investors understand that buying off-plan in Phuket can generate strong returns. Fewer understand exactly when to enter, what the exit options look like at each stage of the cycle, and what the taxes are when you sell. Here is the full picture with verified numbers.
By Laura · The Agent Phuket · April 2026
First: understand what you are actually buying
When you purchase an off-plan property in Phuket, you are not buying a building. You are buying a contractual right to receive a property at a future date, in exchange for a series of staged payments tied to construction milestones. That distinction matters, because it shapes every exit option available to you.
The typical payment structure in Phuket runs as follows:
- Reservation deposit: ฿50,000–100,000 to hold the unit (usually deducted from first instalment)
- Contract signing (within 14–30 days): 25% of the total price
- Construction milestones: 4–6 instalment’s (every 6 months roughly) covering roughly 25% cumulatively — foundation, structure, roof, internal works
- Final payment at handover: 25% of the total price, due when keys are issued, some developers offer a post handover payment plan.
The typical timeline from launch to completion in Phuket is 18–24 months for condos, 12–18 months for smaller villa projects. Some larger branded developments run to 30–36 months.
The worked example: a Bang Tao 1-bedroom condo, 2025 launch
This is a realistic scenario built on verified market data. It is not a specific project, it is a composite that reflects actual pricing, payment structures, and appreciation rates documented in the market.
Entry: the purchase
You buy a 1-bedroom, 45 sqm freehold condo in Bang Tao / Cherngtalay corridor at a Q1 2025 presale launch. The developer prices it at ฿6.3 million (฿140,000/sqm), which is in line with the verified market average for the area. C9 Hotelworks and REIC data confirm that off-plan units in 2024 averaged ฿121,000/sqm.
The pre sale discount of 10–15% below expected completion pricing is a documented, standard practice in Phuket. This unit, once completed and registered, would be expected to list at ฿7.0–7.5 million based on the trajectory of comparable units.
Payment schedule
PAYMENT SCHEDULE — ILLUSTRATIVE (฿6.3m TOTAL)
Stage % Amount Cumulative paid
Reservation (hold unit) 2% ฿126,000 ฿126,000
Contract signing (Day 30) 30% ฿1,890,000 ฿2,016,000
Foundation complete 10% ฿630,000 ฿2,646,000
Structure / columns 10% ฿630,000 ฿3,276,000
Roof complete 10% ฿630,000 ฿3,906,000
Internal fit-out 10% ฿630,000 ฿4,536,000
Handover (keys) 28% ฿1,764,000 ฿6,300,000
The three exit windows and what each delivers
There is no single ‘right’ time to exit. There are three distinct windows, each with different risk profiles, liquidity characteristics, and financial outcomes. I will walk through each one.
Exit Window 1: During construction, contract assignment, lower equity
This is the pre-completion flip. You sell your contractual rights to a new buyer before handover, typically 12–18 months into a 24-month build. The new buyer takes over your remaining payment obligations.
How it works in Thailand: unlike Dubai, which has a formal DLD assignment process, Thai off-plan assignments are governed by the contract you signed with the developer. The mechanism is an ‘assignment clause’ or ‘novation clause’ in your purchase agreement. This allows you to transfer your rights and obligations to a third party, usually with the developer’s written consent. Not all contracts include this. It is the first thing your lawyer should check before you sign.
When this works well: you bought early at presale pricing, the project has progressed visibly (structure is up, the build is credible), and you have found a buyer who missed the original launch and wants to enter the project. Your contract is now worth more than you paid for it because the risk has reduced and the market has moved. The price you can achieve during construction: the contract typically gains value as construction de-risks. Mid-construction on a well-regarded project in a strong area like Bang Tao, you could reasonably expect to achieve a 10–20% premium over your purchase price, based on the documented 10–25% presale discount to completion pricing. A buyer acquiring mid-construction is paying above presale but below completion-stage pricing — which is still a rational trade for them.
Critical contract check: before signing any off-plan purchase in Phuket, your lawyer must confirm the agreement contains an assignment clause. Without one, you cannot legally sell your contract before completion. This is non-negotiable due diligence.
Tax position on a construction-stage assignment: because you are selling a contract right, not a registered property, no formal land transfer occurs at this stage. The tax treatment depends on the developer and how the transaction is structured. There are no Land Office transfer fees on an assignment of contract. However, if the assignment generates income for you, that income is technically subject to Thai personal income tax in the year received. In practice, the tax implications of pre-completion contract assignments in Thailand are less clearly codified than post-completion sales independent legal and tax advice is essential for your specific situation.
Source: Phuket.net 2021 / 2024 off-plan guides; phuketrealtor.com; JFTB Thailand property tax guide 2025
Exit Window 2: At handover, the clean exit
This is the most common exit strategy for investors who bought at presale. You complete all payments, take the keys, register the title deed in your name at the Land Office, and immediately list for resale. You hold the property for the minimum time necessary to complete the registration, then sell.
Why this window often delivers the strongest outcome: by the time you reach handover, you have captured the full construction-period appreciation. The project is real, visible, and deliverable all the uncertainty that justified the presale discount has been eliminated. A buyer at this stage is purchasing a new, completed, freehold unit in a project they can physically inspect, at a price that still sits below equivalent older stock in the same area.
The verified example:
Gardens of Eden, Layan Beach. Eden Residences (Phase 1) launched at USD 755/sqft at presale.
By the time Phase 3 was being launched after 82% of Phase 1 was sold,
Phase 1 resale prices had reached USD 1,029/sqft (+36%) and climbed further to USD 1,346/sqft (+30% more) by November 2025.
These are documented Land Department registration figures reported by EdgeProp Singapore in January 2026. This is not a best-case projection. It is a recorded outcome.
+36% Gardens of Eden Phase 1 — presale to Dec 2024 — USD 755 → USD 1,029/sqft — EdgeProp Singapore, Jan 2026
+30% Further appreciation by Nov 2025 — USD 1,029 → USD 1,346/sqft — same source
Source: EdgeProp Singapore, Jan 2026
Applied to the worked example: your ฿6.3 million unit, if it appreciates at the documented 6.4% CBRE annual average over a 24-month build period, would be worth approximately ฿7.1 million at handover before any additional uplift from the presale-to-completion premium. In a stronger performer like the Gardens of Eden trajectory, the same unit could reach ฿8.0–8.5 million. The range is real; the direction is consistent.
Exit Window 3: Hold post-handover, yield plus long-run appreciation
You take the keys, furnish the unit, place it into a managed rental programme, and hold for 3–5 years before selling. This is the strategy that captures rental income alongside continued capital appreciation, and it comes with a specific tax advantage that most investors do not fully factor into their planning.
The rental income case: verified Phuket rental yields for prime Bang Tao condos run at 7–10% gross annually, with professionally managed units achieving the upper end of that range. At ฿7.0 million market value, that is ฿490,000–700,000 per year in gross rental income before management fees (typically 20–30% of revenue for short-term rental programmes) and costs.
The critical tax advantage of holding beyond 5 years: Thailand’s Specific Business Tax (SBT) of 3.3% on the sale price applies to any property sold within five years of purchase. Hold for more than five years, and this tax disappears entirely replaced by the much lower Stamp Duty of 0.5%. On a ฿8 million property, this is a difference of ฿264,000 vs ฿40,000. That saving materially improves your net return and is the single most significant tax planning decision available to a Phuket investor.
3.3% Specific Business Tax if sold within 5 years eliminated if held 5+ years replaced by 0.5% stamp duty
฿264,000 SBT cost on ฿8m sale (within 5 yrs) vs ฿40,000 stamp duty if held 5+ years saving of ฿224,000
Source: Thai Revenue Code; phuketrealtor.com Thailand property tax guide; JFTB tax guide 2025; Conrad Properties tax guide 2025
What the current market environment means for timing
This is where I want to be direct, because the data has shifted since 2023–2024 and anyone advising you based on the peak market is giving you an outdated picture.
In H1 2025, REIC confirmed that Phuket’s new condo market cooled sharply: new launches fell more than 50% from H1 2024, and the monthly absorption rate dropped from 7% in late 2023 to 2.9% by mid-2025. The time to sell out a new project increased from 14 months to 28 months. Unsold condo inventory reached a new record of 10,466 units worth ฿88 billion by end of H1 2025.
This changes the exit calculus. It does not mean the market is broken but it does mean that selling at handover into a flooded market is a materially different proposition in 2025–2026 than it was in 2023–2024. Here is what that means in practice:
2.9% Phuket condo monthly absorption rate mid-2025 down from 7% in late 2023 REIC / Bangkok Post Sep 2025
28 months Estimated time to sell out a new condo project mid-2025 up from 14 months REIC via Bangkok Post Sep 2025
10,466 Unsold condo units at end H1 2025 (฿88bn) new record REIC via Bangkok Post Sep 2025
Source: Bangkok Post, 25 Sep 2025 (REIC H1 2025 data)
The window of ‘sell at handover into an immediately liquid market’ was 2022–2024. The current market rewards buyers who are selective about project and location, and patient about their exit. The hold-for-yield strategy particularly with the 5-year SBT advantage is now more compelling relative to a quick flip than it was at the peak.
- Buy: prime branded or well-located product in Bang Tao / Kamala / Layan from a developer with a completed track record. These continue to absorb well — some sold out entire projects within a month even in 2025.
- Avoid: mid-market condos in Cherngtalay’s lower price bands, or inland areas (Pru Jampa, Bang Jo) where new supply is still building and the buyer pool is thinner.
- Exit strategy: plan for a 3–5 year hold from launch, earn rental yield during that period, and sell on the right side of the SBT five-year threshold where possible.
- On contract assignment: if you need liquidity before handover, ensure the assignment clause is in your contract before you sign. Do not assume it is. Most standard Phuket developer contracts include it, but this must be verified in writing.
What I look for when evaluating a project for a client
Not every off-plan project in Phuket is worth buying. Here is the specific checklist I use:
- Developer track record: minimum two completed Phuket projects with verifiable handover dates. Bangkok-based developers who have recently entered the Phuket market (Sansiri, Ananda, Origin) carry brand credibility but local track record is shorter factor this in.
- Foreign freehold quota: confirm in writing before deposit that your specific unit is allocated to the 49% foreign quota. In prime Cherngtalay projects, this quota fills within weeks of launch. Do not assume availability.
- Assignment clause: confirmed in the purchase agreement by your lawyer. Non-negotiable.
- Escrow arrangement: some Phuket developers hold payments in escrow; most do not. It is increasingly standard for reputable developers to offer this as a differentiator. Not a dealbreaker but a positive signal.
Location within a supply context: how many competing units are launching within 500 metres of this project? Bang Tao has 50%+ of all active supply. A new project there needs a clear differentiation brand, amenity, location within the area to justify premium pricing.
Price per sqm vs verified secondary market: I cross-reference every off-plan launch price against the C9 Hotelworks and REIC verified secondary market data. If the developer is pricing above the secondary market average for equivalent location and specification, the appreciation thesis requires a stronger case.
Exit market depth: who will you sell to? In Bang Tao, the buyer pool is deep Russians, Europeans, Indians, Singaporeans, UK buyers. In Patong or outer Kathu, the exit pool is narrower. Know your buyer before you buy.
The off-plan resale cycle in Phuket is a genuine investment mechanism not a pitch. It has produced documented returns in named, verified projects. It also carries real risks that are now more visible in 2025–2026 than they were at the market’s peak.
The investors who will do well are the ones who enter selectively, understand their exit window, plan around the five-year tax threshold, and hold quality product in constrained-supply locations. That is the advisory I provide.
If you want to work through a specific project against this framework entry price, location, absorption data, exit scenario, and tax position get in touch.
DATA SOURCES & VERIFICATION — BLOG 05
Every figure in this post is drawn from a named primary source. Tax calculations are based on the verified legal framework but individual circumstances vary — always take independent legal and tax advice before transacting.
[S1] Off-plan units avg ฿121k/sqm vs resale ฿68k/sqm (2024)
Bangkok Post / REIC
bangkokpost.com/property/3110282
Published: 25 Sep 2025
[S2] Phuket monthly absorption rate fell from 7% to 2.9%; sell-out time 14 → 28 months
Bangkok Post / REIC H1 2025
bangkokpost.com/property/3110282
Published: 25 Sep 2025
[S3] Unsold condo inventory 10,466 units / ฿88 billion at end H1 2025
Bangkok Post / REIC H1 2025
bangkokpost.com/property/3110282
Published: 25 Sep 2025
[S4] Gardens of Eden: USD 755 → USD 1,029 (+36%) → USD 1,346 (+30%)
EdgeProp Singapore
edgeprop.sg (Jan 2026)
Published: Jan 2026
[S5] 6.4% annual condo capital gain (10-yr average)
Bangkok Post citing CBRE Thailand
bangkokpost.com/property/3145240
Published: 27 Nov 2025
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