Getting orientated in Phuket is a necessity to have any idea about where you want to live. The old saying: Location, Location Location - holds true here too. Most people who arrive here for the first time will probably stay in a hotel somewhere on the west coast. Popular areas include: In the north, Cherngtalay, Bang Tao and Surin Beach; In the middle, Kamala and Patong; and in the South, Karon, Kata and Rawai.

Traditionally property buyers were restricted to expensive property developments: in Kamala - like Ayara or Leam Son Villas, in Kata - like Katamanda and in Cherngtalay - like Laguna Property and Banyan Tree Villas.

Over the years, many new hotels and resorts have grown and there's much more middle and lower end budget accommodation available. Similarly in the property market you can find a wide selection of mainstream and budget villas and apartments.

Northern part
Today the main areas attracting the majority of foreign and local investment are situated in the northern parts of the island - particularly Layan, Cherngtalay, Surin and Kamala Beaches. Much is attributed to the supply of land, good hotels, the airport, golf courses, water, and the ability of these areas to absorb the new development.

Southern Part
Farther south, property development has been markedly more informal. Typically characterized by stand alone or one off housing projects - (such as 3 to 5 homes, shop-houses and town homes in small estates) mainly catering to local expats and the like. You can find these trends in places like Patong, Chalong, Rawai and to a lesser extent Karon or Kata. That said - there are however some very successful estate developments in these areas notably: Villa Santi - Patong, Phuket L'Ochidee - Patong, Movenpick Apartments - Karon, Kata Gardens - Kata, Mom Tri Grand Cru Villas - Kata, The Heights - Kata, Katamanda - Kata, Rawai Villas - Rawai, Mangosteen Villas - Rawai and Rawana - Rawai to name but a few.

Much of the restriction for the main part of the property developers in the South (and the reduced attractiveness for international buyers) are land-parcel size, which enable bigger projects, the relative cost, infrastructure, zoning and road access.

Owning Property In Phuket
Owning land or property in Thailand is relatively simple. Foreigners are not allowed to own land directly in Thailand, but you can set up a Thai company to own it for you. There are many American and British-oriented law firms that can inexpensively set up your land or property (Villa or apartment) holding company for you. The advantage of owning a Thai company is that when you decide to sell the property or land there is no capital gain; you simply change the ownership of your company shares.

Long-Term Leaseholds for Phuket Property
Another simple method used by many Thailand property investors is to obtain long-term leaseholds. The longest a single lease can be registered in Thailand is 30 years; however, you can pre-register 3 consecutive 30 year leases in one go, giving you a de facto 90 year lease. Normally there is a provision written into the leasehold agreement that allows you to register another 30 year lease once the previous lease has expired. In effect, this provides a lease in perpetuity.

Beeing Your Own Landlord
In some developments the freehold is passed to the individual lessees once the entire development is sold out. Each lessee then owns an equal share in the freeholds so that they effectively become their own landlords.

The Freehold Condominium Law
A few years ago Thailand introduced the “Freehold Condominium” law which has the effect of producing a two-tier ownership structure within a single development.  Under this law, 49% of the condominium development can be sold outright to foreigners with Thai owners holding at least the remaining 51%.

Getting Help
We hope this enhances your understanding of Thai property ownership rules. While seemingly complex, we can assure you that thousands of foreigners have made safe and successful purchases, including ourselves. As the business landscape in Phuket changes, it recommended to seek professional advice.