Foreigners have become highly interested in buying property in Koh Phangan for numerous reasons, whether investing in vacation homes or exploring other business opportunities. However, delving into the real estate market can be challenging for foreigners unfamiliar. This article will provide crucial insights for making sound investments, navigating the unique aspects of the process, and discussing essential information on the nuances of buying property in Koh Phangan.
Koh Phangan real estate market
Koh Phangan is one of Thailand’s most famous islands. It is about 100 kilometers from Surat Thani City, covering 168 square kilometers with an approximate population of 14,000. The real estate market of Koh Phangan offers diverse properties, including sea-view villas, condos, houses, hotels, and more. Koh Phangan condo for sale is available at an average price of ฿ 7.9 million ($235,341). While other properties cost an average of ฿ 15 million ($446,850) for houses and ฿ 12 million ($357,480) for villas. In 2023, the island recorded a hotel occupancy rate of 82.13%. Moreover, the average annual revenue for Airbnb rentals amounted to ฿ 19,667 ($586).
In 2024, during the peak tourist season, prices for sea-view plots of up to one rai (approximately 1,600 square meters) have soared to between ฿ 8 million ($238,320) and ฿ 10 million ($297,900). The most desirable areas for land investment include Hin Kong, Haad Yao, and Haad Salad. With the rising demand for land, several developers have launched villa projects, increasing the supply of properties in Koh Phangan.
Can foreigners buy property in Koh Phangan, Thailand?
Thailand enforces stringent regulations on foreign land ownership, as the Land Code Act prohibits foreigners from registering land in their names, effectively barring them from purchasing or owning land directly. Despite these restrictions, there are various ways for foreigners to buy property in Koh Phangan:
- Condominiums: Foreigners can purchase condo units outright but are limited to a 49% foreign ownership cap per building. However, recent policy changes have raised this quota to 75%, making it easier for foreign investors to acquire more units. This adjustment is designed to attract more foreign investment, stimulate demand for condos, reduce market oversupply, and revitalize the condominium sector.
- Thai company ownership: Establishing a Thai company is a common strategy for foreigners to acquire property in Koh Phangan. In this arrangement, foreigners can own up to 49% of the company’s shares, with the remaining 51% owned by Thai nationals.
- Leasehold agreements: Although leasehold agreements do not transfer ownership, they offer long-term use of land and property—typically for up to 30 years, with renewal options extending the term to 90 years. This strategy is popular among foreigners as it provides a means to secure investment property in Koh Phangan for various purposes.
- Marriage to a Thai national: A foreigner married to a Thai citizen can purchase property in Koh Phangan, but the property must be registered under the Thai spouse’s name.
Buying property in Koh Phangan as a foreigner in 6 steps
If you are considering buying property for sale in Koh Phangan, here is a streamlined six-step process to guide you through the experience.
Step 1: Define your needs and budget
Start by clearly identifying what property for sale in Koh Phangan you are looking for. Consider the type of property—whether it’s a house, condo, or plot of land—along with the size, preferred location, and your budget. Having well-defined criteria helps you focus your search, saving time and effort as you navigate the real estate market.
Step 2: Partner with a real estate agent
When navigating the complexities of real estate in Koh Phangan, partnering with a local real estate agent is highly advisable. Their expertise in the area will be invaluable in finding properties that match your needs. They can also provide key market insights and assist with negotiations, ensuring you get the best deal. A specialized real estate agency in Koh Phangan can also provide real estate services for your transaction. Own Property Abroad offers similar services tailored specifically for foreign buyers, making the process smoother.
Step 3: Conduct thorough due diligence
Conducting a thorough due diligence process is crucial in buying property in Koh Phangan. Verify the legal status of the property by checking the title deed and thoroughly inspect the property to assess its condition and identify any potential risks. Hiring professional appraisers to evaluate the property’s market value will give you a solid basis for your offer, ensuring it aligns with current market trends.
Step 4: Make an offer
Once you have researched and conducted due diligence, make an offer by comparing current prices and trends in Koh Phangan’s real estate market. Negotiate with the seller to agree on a fair price and favorable terms.
Step 5: Process the legal documents
Engage with a qualified property lawyer to review the sales contract and manage the legal aspects of the transaction. You must make an initial deposit, typically around 10% of the agreed price. Additionally, the Land Department requires a 2% transfer fee based on the property’s assessed value. The Land Department is the government body responsible for registering property ownership and collecting related fees. These steps are crucial to ensure the transaction is legally sound.
Step 6: Complete the purchase
The final step is to complete the purchase by paying the remaining balance. Once full payment is made, you will receive the title deed and other essential documents from the Land Department, officially confirming your property ownership in Koh Phangan.
How to find a house for sale in Koh Phangan?
Searching for a house for sale in Koh Phangan is made easier with the assistance of a real estate agent. They offer access to a wide range of properties and can recommend the most desirable locations based on your preferences. A real estate agency in Koh Phangan with vast networks and comprehensive property listings provides valuable insights and tailored suggestions for a smoother buying process. However, if you need help connecting with a real estate agency in Kong Phangan, you can do online searches on real estate platforms to simplify your search. You can explore our property listings, which feature curated real estate properties in Koh Phangan. You can also reach us through our email at [email protected] if you need a real estate agent in Koh Phangan to help you find your ideal property more efficiently.
Property prices in Koh Phangan
Below is a comprehensive table of the average prices of properties in Koh Phangan:
| Type | Average price | Average price/m2 |
|---|---|---|
| Condo | ฿ 7.88 million ($234,771) | ฿ 41,620 ($1,240) |
| House | ฿ 15.09 million ($449,547) | ฿ 65,256 ($1,944) |
| Land | ฿ 20.27 million ($603,728) | ฿ 12,120 ($361) |
| Apartment | ฿ 6.9 million ($205,443) | ฿ 43,594 ($1,299) |
| Villa | ฿ 12.62 million ($376,034) | ฿ 88,667 ($2,641) |
The best places to buy property in Koh Phangan
Koh Phangan offers various properties from diverse locations. Below are the best places to buy property in Koh Phangan:
- Haad Rin: Haad Rin, also known as Hat Rin, is a peninsular beach area located on the southern tip of Ko Phangan. It attracts thousands of party enthusiasts each month for the renowned Full Moon Party. The hillside residential property in Koh Phangan (in Haad Rin) provides comfort while remaining conveniently close to the town’s amenities, making them highly desirable for investors. This area offers property for sale in Koh Phangan with access to the beach, creating an opportunity for a resort or restaurant business.
- Haad Yao: Haad Yao is situated on the west coast of Koh Phangan in between Koh Ma and the fishing village Sri Thanu. It perfectly balances nature with modern conveniences, featuring a vast stretch of white sand beaches and palm trees. You can find a lot for sale in Koh Phangan around this area with beach access suitable for establishing beachfront bars, restaurants, and accommodations.
- Hin Kong: Hin Kong is located on the west coast of Koh Phangan, with stunning views across Samui. What truly distinguishes Hin Kong is the captivating and unobstructed view of the sunsets, making it a favored destination for evening relaxation. The area also offers a wide range of accommodations, catering to all budgets. Beachfront properties, villas, and land for sale in Koh Phangan are available in Hin Kong.
- Thong Sala: Thong Sala is often regarded as the “capital” of Koh Phangan, primarily because it hosts the island’s main port and banking institutions. This bustling village boasts a delightful mix of local and foreign bars and restaurants that cater to visitors day and night. Thong Sala is also home to several resorts and hotels. Moreover, you can find a cheap house for sale in Koh Phangan here with access to amenities.
- Haad Salad: Nestled in the island’s northwest corner, Haad Salad is a hidden gem known as “pirate beach” from when it was a refuge for seafaring pirates. Residential properties in Koh Phangan are available in this area, with access to small, family-run eateries serving delicious local cuisine. The beach here is best for those looking to retreat from Koh Phangan’s more commercialized areas. Beachfront properties, sea-view villas, and lots for sale in Koh Phangan are in demand in Haad Salad.
What you need to know about starting property rentals in Koh Phangan
The influx of tourists largely drives the growing popularity of property rentals in Koh Phangan. Villas in prime locations of Koh Phangan deliver impressive rental yields due to shorter low-season periods compared to other beach destinations in Thailand. The rental property in Koh Phangan shows a promising record. Airbnb rentals boast an occupancy rate of 74%. There are 1,106 active Airbnb listings on the island, with an average revenue of $19,667 annually at an average nightly rate of $72. Foreigners looking to buy property in Koh Phangan for business can venture into property rentals because of the island’s strong tourist demand, high occupancy rates, and substantial rental income potential.
Is buying property in Koh Phangan a good investment?
Investing property in Koh Phangan is an excellent move for foreigners, particularly given the island’s high investment return potential. The rental business thrives because of the high volume of tourists visiting the island annually, contributing to its high occupancy rate of 74%. Airbnb in Koh Phangan has a significant average rental yield of $19,667 annually, an average return on investment (ROI) of 6% to 8%, and property appreciation between 5% and 10% annually. Moreover, Koh Phangan presents a lucrative opportunity for foreigners interested in establishing resorts, restaurants, and hotel businesses, which are in demand due to the island’s high demand for accommodations.
Expert guidance for buying property in Koh Phangan, Thailand
Buying property in Koh Phangan can be complex, especially for foreigners. Our experienced team is here to assist you with every step, from understanding the legal requirements and ensuring compliance to finding the perfect property and closing the deal. Whether you’re looking for an investment property or a dream vacation home, we provide personalized support tailored to your needs. You can also email us at [email protected] for more detailed inquiries and specialized guidance. Contact us today to make your property purchase in Koh Phangan smooth and successful!
Frequently Asked Questions (FAQs)
Can foreigners buy land in Koh Phangan?
No, foreigners are restricted from buying land in Koh Phangan due to the Land Code Act’s restrictions on foreign ownership. However, there are other ways to buy land in Koh Phangan. Foreigners can establish a Thai company to purchase land under the company’s name or buy leasehold land through a leasehold agreement, renting land for an extended period.
How much does land for sale in Koh Phangan cost?
Land for sale in Koh Phangan costs an average of ฿ 20.27 million ($603,728) or ฿ 12,120 ($361) per square meter.
What are the requirements to buy property in Koh Phangan?
The requirements for buying property in Koh Phangan vary depending on the property type. Thai citizenship is a requirement to buy a lot for sale in Koh Phangan since only Thai citizens can register land under their name. However, buying apartments or condominiums as a foreigner is straightforward because there is no nationality or visa requirement.
How much is the tax to buy real estate in Koh Phangan?
The tax to buy real estate in Koh Phangan is a 2% transfer fee required to transfer property ownership.
Where can I find cheap houses for sale in Koh Phangan?
You can find cheap houses for sale in Koh Phangan at Haad Salad and Thong Sala that cost an average of ฿ 15.09 million ($449,547) or ฿ 65,256 ($1,944) per square meter.
Is Koh Phangan the most beautiful island in Thailand?
Koh Phangan is one of the most beautiful islands in Thailand. Renowned for its world-famous Full Moon parties, the island offers a blend of experiences in beaches, jungles, water sports, and adventure opportunities.
