How to Compare Two Thai Property Projects: A Structured Method?
Quick answer: Most buyers pick the better presentation, not the better asset. Run both projects through an 8-factor scorecard, price per sqm vs comps, developer track record, location sub-scores, independently modeled net yield, exit liquidity, payment-plan risk, management quality, and 5-year all-in cost. The winner is often not the cheaper headline price.
8-Factor Comparison Framework
How to calculate:
- Get the net usable sqm for the specific unit you’re evaluating (interior only: exclude balcony, walls)
- Divide asking price by net sqm to get price per sqm
- Research 3-5 recently transacted comparable units in the same area on Hipflat, FazWaz, or DDproperty
- Calculate how far above or below the comparables each project prices
Example comparison:
| Project | Unit | Asking Price | Net sqm | Price/sqm | Market Average/sqm | Premium/Discount |
|---|---|---|---|---|---|---|
| Project A | 1BR, Bang Tao | $245,000 | 48 sqm | $5,104 | $4,800 | +6.3% |
| Project B | 1BR, Bang Tao | $218,000 | 42 sqm | $5,190 | $4,800 | +8.1% |
On price alone, Project A is modestly more expensive per sqm. But is Project A offering features that justify the premium? That’s what the remaining factors determine.
Important: Never compare total price without accounting for unit size. A $218,000 unit at 42 sqm is more expensive per sqm than a $245,000 unit at 48 sqm.
Factor 2: Developer Track Record
Score each project’s developer 1-5 based on:
| Criteria | Points |
|---|---|
| 3+ completed projects in Thailand | 2 points |
| 1-2 completed projects | 1 point |
| Zero completed projects | 0 points |
| No legal disputes or defaults | 1 point |
| Construction starts within projected timeline | 1 point |
| Transparent about past project delays | 1 point |
A developer with a score of 4-5 is low-risk. 2-3 is medium risk requiring additional due diligence. 0-1 is high risk, avoid unless compensating factors are overwhelming.
Factor 3: Location Score
Break location into sub-factors:
| Sub-factor | Weight |
|---|---|
| Distance to beach (walking minutes) | High |
| Proximity to restaurants/lifestyle infrastructure | Medium |
| Distance to airport | Low-Medium |
| Noise exposure (main road, nightlife) | Medium |
| View potential (sea, nature, or concrete wall) | High |
| Future development risk (adjacent plots) | High |
| Area capital growth trend (5yr) | High |
Score each project 1-5 on each sub-factor. A project near the beach in Bang Tao with good views and low noise will score 20-25/25; a project near a main road in Chalong with no view might score 8-12/25.
Factor 4: Rental Yield Potential
This requires estimating realistic rental income, not the yield the developer promises.
Steps:
- Find comparable units already operating in the same area on Airbnb, Agoda, or Booking.com
- Calculate average nightly rate for similar units (size, furnishing level, view)
- Apply realistic occupancy: 70-80% high season (Nov-Apr), 45-55% low season (May-Oct)
- Calculate gross annual revenue
- Deduct management fee (typically 20-35%)
- Calculate net yield as % of purchase price
Example (1BR in Bang Tao):
- Average nightly rate: $145
- Annual weighted occupancy: 68%
- Gross revenue: $145 × 365 × 0.68 = $36,000
- Management fee (30%): −$10,800
- Net revenue: $25,200
- Net yield on $245,000: 10.3% (gross yield: 14.7%)
Caution: Never use developer-provided yield estimates without independently verifying against Airbnb/Agoda comps. Developer yields are often based on full-year optimistic occupancy and pre-management-fee.
Want MORE Group to model realistic yield for two projects?
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Factor 5: Exit Strategy Viability
Score each project on resale potential:
| Criteria | Score (1-5) |
|---|---|
| Area resale liquidity (Bang Tao = 5, Phuket Town = 1) | ___ |
| Unit type (1BR = 5, 3BR+ = 2) | ___ |
| Price point ($150k-$300k = 5, $500k+ or under $100k = 2) | ___ |
| Foreign quota availability | ___ |
| Management program (branded = 5, none = 1) | ___ |
A project scoring 20-25 has excellent exit viability. Below 15, reconsider whether your capital is deployable elsewhere.
Factor 6: Payment Plan Terms
This factor is most relevant for off-plan purchases. Compare:
| Term | Better | Worse |
|---|---|---|
| Reservation deposit | ≤5% | over 10% |
| SPA payment | 15-25% | over 30% |
| Construction instalments | Milestone-based | Time-based or upfront |
| Final payment | At handover | Fixed date regardless of progress |
| Penalty for developer delay | ≥0.5%/month after grace period | No penalty |
| Buyer cancellation refund | Tiered, with partial refund early | Non-refundable |
A good payment plan protects the buyer by linking payments to real construction progress. A bad payment plan transfers all risk to the buyer.
Factor 7: Management Company Quality
| Criteria | Score (1-5) |
|---|---|
| Brand recognition (Anantara = 5, unknown = 1) | ___ |
| Years operating in Phuket | ___ |
| Actual occupancy data available | ___ |
| Management fee fairness (20-30% = good, 40%+ = poor) | ___ |
| Owner reporting transparency | ___ |
| Hotel management independence from developer | ___ |
A management score of 20-25 indicates a strongly managed project. Below 12, the management company is likely adding risk rather than reducing it.
Factor 8: True All-In Cost
The asking price is not the total cost. Calculate total cost of ownership over 5 years:
| Cost Item | One-Time or Annual |
|---|---|
| Purchase price | One-time |
| Transfer fee (2%) | One-time |
| Lawyer fees (30,000-80,000 THB) | One-time |
| Furnishing ($12,000-$25,000 for 1BR) | One-time |
| Annual maintenance fee (typically $500-$2,000/year for condos) | Annual |
| Management fee (deducted from revenue, see Factor 4) | Annual |
| Property tax (new 2020 Thai property tax, typically minimal for investment condos) | Annual |
| Insurance ($200-$500/year typical) | Annual |
5-year cost projection example (1BR at $245,000):
- Purchase + transfer: $249,900
- Legal + setup: $2,500
- Furnishing: $16,000
- 5yr maintenance: $7,500
- Total 5yr investment: $275,900
Do this for both projects and compare the full number, not just asking price.
Pros and cons of structured project comparison
Cons
- Takes 4-8 hours of desk research per pair
- Requires OTA comps, unavailable for brand-new zones
- Off-plan scores shift as construction progresses
- Emotional “view premium” still hard to quantify
For most tickets above $180,000, the time cost pays back in avoided CAM or guarantee mistakes.
Buyer scenarios, which project wins?
Scenario A: Completion flip (off-plan): Weight Factors 2, 6, 5, developer score, payment plan, exit at handover. Prefer milestone payments and penalty clauses; compare against off-plan Phuket guide.
Scenario B: Lifestyle hybrid: Weight Factor 3 (location) and accept 1.5-2% net yield haircut for peak-season personal weeks, align with lifestyle plus income model.
Scenario C: Remote owner: If management score gap exceeds 5 points, the better-located project with weaker self-manage option loses to the mid-location project with Anantara-class operator and owner reporting portal.
MORE Group comparison data: what we add
Worked tie-break: two Cherng Talay 1-beds at $238K vs $251K, higher price won because price/sqm was 4% below micro-market after view adjustment and juristic had no special assessment in 36 months. Lower headline price carried pending facade vote.
Location score worked example: Bang Tao vs Rawai
Rawai wins on entry ticket and net yield; Bang Tao wins on exit liquidity, pick based on hold period. Short hold → liquidity. Seven-year hold → either can work if net yield clears hurdle.
Frequently Asked Questions
Ignore developer yield claims entirely and calculate independently. Find comparable units on Airbnb and Agoda in the same area, note average nightly rates and occupancy, then model gross revenue and subtract realistic management fees (20-35%). Compare this modelled yield to the developer's promise, if the developer's number is 30%+ higher than your model, the claim is not credible.
Almost always prefer location. Location in Phuket, specifically proximity to beach, quality of area's rental demand, and area's capital growth track record, determines both yield and resale outcome over 5+ years. A $30,000 purchase price difference between two projects evaporates within 1-2 years of superior rental performance in the better location.
Comparing total price without accounting for size differences (price per sqm is the correct metric), and accepting developer yield projections without independent verification. The second most common mistake is evaluating only the unit itself, without assessing the developer's track record and the management company's actual operating history.
Very important, especially for off-plan. A project with milestone-based payment instalments gives you natural decision points throughout construction, if the developer misses milestones, you have leverage to renegotiate or exit before making further payments. A project requiring 50%+ upfront puts you fully at risk from day one. Two otherwise equal projects can have very different risk profiles based on payment structure alone.
Yes, agents like MORE Group who operate on a buyer-first basis (0% commission from buyer) can provide independent comparisons. Be cautious of comparisons provided by agents who represent one of the projects, their incentive is to steer you toward the project where they earn higher referral fees. Request comparisons that include yield models, developer background checks, and historical price data from the area.
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Maksim Shchegolev
Founder, MORE Group
Founder of MORE Group. Four years in investment banking before moving to Phuket, where he has worked in the local property market since 2018. Oversees developer relationships and every engagement above $300K.
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