Why Advertised Prices Cannot Be Compared Directly
A buyer finds two units in the same neighbourhood: an off-plan condo priced at THB 5.2 million and a completed condo offered for THB 5.7 million. The off-plan option initially appears THB 500,000 cheaper. That conclusion may change after adding furniture, handover expenses, the waiting period and the income the completed property could generate before construction finishes.
A developer’s price relates to a property that may be delivered in one, two or three years. A completed condo can be inspected, transferred, occupied and rented shortly after purchase. The two prices therefore relate to different dates and different levels of uncertainty.
A meaningful calculation brings both options to the same comparison date. The expected handover date of the off-plan development is commonly used, and the buyer calculates how much each property will have cost by that point.
Start by reviewing suitable new developments in Thailand, then identify completed units of a similar class within the same area. Comparing different locations produces weak results because rental rates, demand, infrastructure and liquidity may vary more than the properties themselves.
How to Select Two Genuinely Comparable Properties
The same bedroom count does not automatically make two units comparable. A new 35 sq.m. one-bedroom condo and a completed 55 sq.m. residence may target different tenants and generate different rental income.
Useful comparison criteria include:
- the same neighbourhood or adjacent locations with similar demand;
- the same number of bedrooms;
- a comparable usable floor area;
- a similar view and floor position;
- a comparable distance to the beach, business district or amenities;
- the same ownership structure;
- a similar development and facility standard;
- the same target tenant or future buyer.
Where an exact match is unavailable, the differences should be converted into monetary adjustments. Additional floor area has value, a higher floor may command a premium, and an older unit may require renovation. Reviewing several completed properties in Thailand provides a more reliable benchmark than using one isolated resale listing.
How to Use Price per Square Metre
Price per square metre provides a quick comparison, although it cannot produce the final answer on its own. The calculation is:
Price per sq.m. = property price ÷ registered floor area.
Assume an off-plan unit of 40 sq.m. costs THB 5.2 million. Its price is THB 130,000 per sq.m. A completed 44 sq.m. condo costs THB 5.7 million, or approximately THB 129,500 per sq.m. The completed unit has a higher total price, while the difference almost disappears after adjusting for floor area.
The registered area in the contract or title document should be used. Marketing brochures may include balconies, gardens, terraces, pool areas or other spaces that are measured differently across developments.
Price per square metre also requires adjustments for floor level, view, building age, renovation, furniture and layout efficiency. A larger condo with long corridors may provide less practical living space than a smaller, well-designed new unit.
How to Bring Both Prices to a Ready-to-Use Condition
The next step is to calculate the amount required before the property can be occupied or rented. For an off-plan unit, additional costs may include:
- furniture and appliances;
- curtains, lighting and loose interior items;
- registration and transfer expenses;
- the sinking-fund contribution;
- advance common-area charges;
- meter deposits or installation fees;
- snagging and defect correction;
- rental-ready furnishing and equipment.
A completed unit involves a different cost profile:
- registration expenses;
- replacement furniture and appliances;
- repairs to finishes and building systems;
- air-conditioning servicing;
- verification of condominium debts;
- possible special assessments;
- expenses before the first tenant moves in.
Owner expenses continue after purchase. The guide to rental-property owner expenses in Thailand helps identify management, maintenance, vacancy and recurring costs. The comparison should use net rental income after all these deductions.
How to Account for Instalments, Waiting Time and Lost Rent
An off-plan property often provides a useful advantage: payments are spread across the construction period. The buyer retains part of the capital until later milestones instead of paying the complete price immediately.
A completed condo commonly requires full settlement by the transfer date, although it may begin generating income straight away. The timing of each payment therefore matters alongside the total amount.
Lost rental income can be estimated as follows:
Lost rent = expected monthly net income × months until handover.
If a completed condo can produce THB 20,000 per month after expenses and the off-plan property will be delivered in two years, the potential income during the waiting period equals THB 480,000. This income is not guaranteed because vacancy, repairs and tenant turnover remain possible. A conservative calculation may apply occupancy of 75–85% and deduct annual operating expenses.
The cost of capital also matters. Money paid into an off-plan project is committed and cannot simultaneously earn a return elsewhere. A flexible payment schedule reduces this effect, while a large early payment increases it.
How to Adjust for Construction Risk and Liquidity
An off-plan buyer accepts uncertainty regarding completion dates, construction quality, the final view, permits and the developer’s financial strength. The price should compensate for that uncertainty or provide another meaningful advantage, such as flexible payments, a rare location, a superior layout or credible appreciation potential.
There is no universal construction-risk discount. A late-stage project by an established developer may require only a modest adjustment. An early-stage development with limited documentation or no completed track record requires a larger safety margin.
Completed properties carry different risks:
- building and system wear;
- an ageing concept;
- renovation requirements;
- seller or condominium debts;
- weak building management;
- new competing developments nearby.
The future exit price also deserves attention. Liquidity depends on size, quota status, layout, floor, view, common fees and the number of competing units. The guide explaining what affects property liquidity in Thailand covers these factors in greater detail.
How to Compare Both Options on the Same Date
Consider an illustrative example involving two one-bedroom condos in the same area. The comparison date is the expected off-plan handover in 24 months.
| Cost item | Off-plan property | Completed property |
|---|---|---|
| Purchase price | THB 5,200,000 | THB 5,750,000 |
| Transfer and handover expenses | THB 160,000 | THB 170,000 |
| Furniture, appliances or renovation | THB 450,000 | THB 350,000 |
| Cost of committed capital | THB 180,000 | THB 30,000 |
| Lost net rent over 24 months | THB 480,000 | THB 0 |
| Construction-risk reserve | THB 260,000 | THB 0 |
| Net rent received before the comparison date | THB 0 | −THB 480,000 |
| Total cost at the common date | THB 6,730,000 | THB 5,820,000 |
In this example, the advertised off-plan price was THB 550,000 lower. After bringing both options to the same date, the completed condo is approximately THB 910,000 more favourable.
The off-plan property may still produce the better result if its market value increases significantly before completion, its payment schedule is particularly attractive or its final product is materially stronger than existing competitors. The completed property tends to perform better where rental demand is proven, the unit is in good condition and the price gap is substantial.
The final decision should use three measures: total cost at the same future date, expected net income and likely resale value. This approach reveals the economics of the purchase more clearly than a launch discount or a promised increase before completion.
