Definition of Terms in the World of Thai Condominiums
Any novice in the world of real estate—condominiums in general and Thai condominiums in particular—would do well to start off by familiarizing the definitions of the basic terms employed in real estate jargon.
What the Western world typically calls an apartment or flat is called in Thailand a condominium. Strictly speaking, a condominium is a building where each individual resident holds a freehold title to his own condominium unit while sharing ownership with the rest of the residents over common areas such as the elevator, gym, swimming pool, park and other amenities. Thai law further stipulates that a foreigner is allowed to own only up to 49% of the total area within a condominium building.
Condominiums that are still under construction can be marketed and sold with the intent of using the proceeds to finance the construction all the way to completion. Buying off-plan or pre-construction property has its own advantages and risks. On one hand, there is the lure of “buying low and selling high”—a tempting bait which has spurred risk-takers to venture into thrilling investments. On the other hand, pre-construction acquisition carries the risk of watching the project go awry or getting aborted even. In the history of Thailand real estate, the market for off-plan properties has shown a surge as against the relatively stable market of secondary property markets.
An already standing condominium offers many benefits that an off-plan simply cannot give. For one, one can inspect the building and all its amenities and fittings. Buying a resale condo does away with the construction glitches and developer delays associated with off-plan properties. Then, too, there is always the possibility of hitting a sweet deal with not-so-new but still beautiful condominium units.
Bangkok Condominium Classifications
- Entry Level condominiums are marketed for prices below THB 60,000 per square meter.
- Mid-range condominiums are those which are priced from THB 60,000 to 80,000 per square meter.
- Upper Mid-range condominiums are those valued at THB 80,000 to 100,000 per square meter.
- High-end condominiums are being marketed at prices ranging from THB 100,000 to 130,000 per square meter.
- Luxury condominiums are sold somewhere between THB 130,000 to 180,000 per square meter.
- Super Luxury condominiums are those which are priced at or higher than THB 180,000 per square meter.
Characteristics of High-end to Super Luxury Condominium
- It is in a strategic location which affords easy access to modes of transport, malls and offices.
- It is within a neighborhood which affords adequate privacy and optimal security.
- It is characterized by sound architectural and engineering design as well as tasteful decoration.
- It is built using high-standard materials along with strict adherence to specifications.
- It provides adequate facilities for sports and leisure such as gyms, swimming pools, tennis courts and parks.
- It maintains a good elevator system for vertical transport.
- It is run by a professional management system.
- It provides adequate and well-designed car parking.