Resale Property versus New Off-plan Projects

Resale Property versus New Off-plan Projects

For Buyers looking to purchase property in Thailand there is a choice to be made between buying a brand new / off-plan property from a developer or purchasing a completed property from a private seller in the resale market. Below we have looked at some of the pro’s for each scenario;

Resale Properties

  • Better Value;  property prices are typically lower in the resale market versus new builds
  • Better locations ; resale properties can be found in prime locations, with new developments moving to new less developed locations
  • Provide immediate rental income
  • Sellers more negotiable; typically private sellers are more negotiable than property developers and can offer buyers better purchase prices

 Off-plan / New Build

 Latest designs and building materials

  • Staggered payments; for off-plan property purchase payments are paid over the construction period typically 12 to 18 months.
  • Defects guarantee; developers offer buyers a 1 year defects guarantee and will fix anything within the first year
  • Option to make design changes; if Buyers get in early enough on off-plan developments they can make design changes to the floor plan and/or materials to be used.

Thai Baht Positives

  • Baht strength over the past two decades has meant higher capital gains and increasing rental incomes for overseas property investors
  • Bank of Thailand (BOT) officials and currency analysts explain the strength of the baht by domestic factors. Thailand’s solid economic fundamentals — a current account surplus and substantial foreign reserves together with a hawkish central bank — lure capital inflows.
  • Baht stability; whilst the Baht has been strengthening against major currencies it has also been stable.

Many consider the baht a safe haven currency among other emerging market currencies due to its stability.

As a result, the baht is likely to retain or increase in value. (Source: Phornchanok Cumperayot www.thailand-business-news.com)

  • When investing in foreign property markets a local currency which is stable and strengthening brings great benefits to foreign investors. Whereas a currency which weakens or yo-yo’s decreases returns and brings uncertainty.  
Author: Kevin Hodges

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