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Buying Land in Phuket

Buying Land in Phuket

Phuket land covers a vast lush tropical, hilly landscape that offers some convenient locations, some private, some with sea views, or some with both. Many permanent residents prefer to stay east of the hill range that separates the lovely West Coast from the rest of the island where all the commercial activity is. They have the advantage of easy access to Phuket town, shopping malls and facilities, and also a less crowded neighbourhood. The Chalong area in particular is favoured by locals, while places like the Kathu hillsides are a nice place for more up market secluded villas.

Land in Phuket and Thailand is always measured in talang wa or rai. A wa is 2m in length and a talang is ‘squared’, therefore 4m2 = a talang wa, and there are 400 wa in a rai. A rai therefore is 1600m2 and can also be split up into 4 ngan (of 100 wa each). Typically, a villa will occupy about 150 to 200 talang wa. Thais prefer to spend most of their budget on the building and will therefore build a modest home on 100 talang wa or less, but it’s not uncommon to develop on a whole rai with a nice tropical garden, depending on the area.

Phuketindex.com has been collecting the prices of land in different areas of Phuket and we give you all the details in the following article. Also, for foreigners who may be interested in purchasing land, purchasing a private property or land for real estate construction, we give you the rules and regulations that apply when acquiring land.

Buying Land in Phuket

Estimated Phuket Land Values 2012 – 2015 by Thailand Treasury Department

Amphur Muang (Inside Phuket City)

  1. Rasada Road 140,000 Baht / Talang Wa
  2. Phang-Nga Road 87,500 – 140,000 Baht / Talang Wa
  3. Ranong Road 71,500 – 140,000 Baht / Talang Wa
  4. Yaowarat Road 60,500 – 140,000 Baht / Talang Wa
  5. Montri Road 60,000 – 100,000 Baht / Talang Wa
  6. Bangkok Road 64,000 – 85,000 Baht / Talang Wa
  7. Takua Pa Road 81,500 Baht / Talang Wa
  8. Dibuk Road 81,000 Baht / Talang Wa
  9. Thalang Road 81,000 Baht / Talang Wa
  10. Krabi Road 53,500 – 81,000 Baht / Talang Wa

Amphur Muang (Outside Phuket City)

  1. The Beach Center 94,500 Baht / Talang Wa
  2. Kasemsub Village 90,500 Baht / Talang Wa
  3. Suksun Place Village 85,000 Baht / Talang Wa
  4. Land located on highway no.4233 69,000 Baht / Talang Wa
  5. Land located on highway no.4028 (Patak) 69,000 Baht / Talang Wa
  6. Ket Kwan Road 57,000 Baht / Talang Wa
  7. Thepthanee Village 55,000 Baht / Talang Wa
  8. Platinum Resident Villa 54,000 Baht / Talang Wa
  9. Samakkhi Village 53,500 Baht / Talang Wa
  10. Sirintra Village 53,000 Baht / Talang Wa

Amphur Thalang

  1. Laguna Phuket 35,000 Baht / Talang Wa
  2. Sai Taan Villa 35,000 Baht / Talang Wa
  3. Supalai Hill Village 30,000 Baht / Talang Wa
  4. Sinsukthani Village 28,500 Baht / Talang Wa
  5. Baan Vijit Village 28,500 Baht / Talang Wa
  6. Permsap Villa 28,500 Baht / Talang Wa
  7. Supalai Gardenview Village 27,500 Baht / Talang Wa
  8. Sujika Village 26,000 Baht / Talang Wa
  9. Baan Rim Tarn Village 26,000 Baht / Talang Wa
  10. Phuket Grand View Village 26,000 Baht / Talang Wa

Amphur Kathu

  1. Taweewong Road 80,500 – 150,000 Baht / Talang Wa
  2. Rat-U-Thit 200 Pee Road 80,500 – 130,000 Baht / Talang Wa
  3. The Royal Place 77,000 Baht / Talang Wa
  4. Billion Plaza 77,000 Baht / Talang Wa
  5. Bypass Square 77,000 Baht / Talang Wa
  6. Land located on highway no.4029 (Prabaramee) 21,500 – 62,000 Baht / Talang Wa
  7. Land located on highway no.4233 (Kamala-Patong) 15,000 – 62,000 Baht / Talang Wa
  8. Pisirkoranee Road 55,500 Baht / Talang Wa
  9. Phuket Country Club 49,500 Baht / Talang Wa
  10. Sirirat Road 49,000 Baht / Talang Wa

Are foreigners allowed to buy land in Phuket?

Thai law generally prohibits foreigners from owning freehold land in Thailand. However, there are various exceptions in the law regarding this issue. There are also other methods available for acquiring valid and legal rights to land in Phuket that do not amount to outright ownership.

What are the different ways of acquiring land rights or purchasing property in Phuket?

IN THE NAME OF COMPANY

A foreigner may own land in Phuket in the name of Thai company (at least 51% of shares are Thai and 49% are foreign). This can be done as a Thai Limited Company or a registered Thai Partnership. The most common form of company registered in Thailand is the Thai Limited Company. If a company is going to support a work permit application, two million baht capital is required for each work permit.

BOARD OF INVESTMENT (BOI)

A foreigner, who invests a minimum of at least one million Baht in Thailand for no minimum prescribed period of time, is entitled to buy up to 20 Rai of land for residential purposes for employees. However, they can only purchase 10 Rai for executives and directors of the Company. In addition, it should be noted that although it may be permissible to own up to 10 or 20 Rai, this depends on how large or small your company is and the activities involved, which will then ultimately be up to the discretion of the Board of Investment. The land bought also has to be located in the same area where the Company is located. The Board of Investment may also grant permission to the applying company to own land if it will be used for an activity promoted by the Board of Investment; however this must not exceed 5 rai, must be owned by a foreign company, and also deal with the requested activity. Please also bear in mind that permission from the Ministry of Interior must be obtained before any such grant.

MARRIED TO A THAI NATIONAL

The Thai property law was amended to allow a foreigner with a Thai spouse to legally own land in Thailand. Nevertheless, the land must still be registered at the land office in the name of the Thai national. The foreigner must also sign a declaration stating that the funds used in the purchase of such land were with the funds of the Thai National and not of the foreigner.

LEASE

Leasing is one option for a foreigner to acquire land. The foreigner in essence leases the land or house from whoever is named as owner of the land, namely the Thai national. The maximum duration of a lease under Thai property law is 30 years, with a possibility to renew again if agreed by the lessor. However, renewal periods are not effective in a contract and would more than likely be unenforceable. This is the least complicated option for a foreigner to have a right of usage of land. A land leased over three years must be registered at the Land Department in order for it to be legally enforceable.

STRUCTURED OWNERSHIP

A company or the Thai spouse of a foreigner may grant a ‘Right of Superficies’ in favor of the foreigner, giving him the right to personally own all constructions situated on the land. By using this possibility, a foreign individual can be registered as the owner of a house without owning the land. The ‘Right of Superficies’ can be conceded for a period of 30 years and can be renewed for another 30 years (but not automatically). It must also be noted that although a superficies may be registered, this is still upon the discretion of the Land Officer at each Land Office.

Before buying land, an essential step in the process is to conduct a Title Search. Since there are different levels of land title deeds, it is recommended to verify with the Land Department the type of title deed of the land which you are interested in acquiring and its legality. This step would provide more information about the land; for instance, whether it is under any obligation and also whether it is a freehold title or not. It is strongly recommended to contact a Lawyer or Solicitor to provide you with such information retrievable from the land department. However, before any such title search can be performed, a copy of the title deed must be presented.

Buying Land in Phuket

Buyer Tips

  • Power poles cost 3,000 THB each and have to be paid for by the land owner if the land is not on a government road. They need to be spaced out at intervals of no more than 30 meters. Wiring is extra.
  • When you view land, make sure you are shown all the borders. Ask to see a copy of the title deed and get the estate agent to walk you around the perimeter. Ask to see things such as gullies, rock features, big trees etc and try to visualise a house built into the landscape. If you cannot do this then get somebody to do it for you.
  • Only buy land if the title deed is of the type Nor Sor Sam, Nor Sor Sam Gor or Chanote.
  • Avoid negotiating with the owner directly; let your lawyer and the real estate company handle this. They will understand the cultural pitfalls of dealing with the local people.
  • Do not, under any circumstances, buy land with a Por Bor Tor Ha, or Sor Kor Nung title. It is illegal to build on land without the preferred titles, ownership is near impossible to achieve and border disputes will ruin your life.

Reference Information: Property-Report.com, Siam-Legal, Thailand Laws Forum, Thailand Treasury Department

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