Phuket Condo Common Area Fees and Sinking Fund Explained

Phuket condo common area fees are the monthly or yearly charges every unit owner pays the building's juristic person to run and maintain shared facilities, and they are usually quoted in baht per square metre per month. On top of that, most new projects collect a one-off sinking fund at transfer. Together they are the biggest running cost of owning a condo in Phuket after tax and utilities, so buyers should check both before signing.

This guide explains what the fees pay for, how Thai law decides who pays what, typical ranges quoted in Phuket, and the questions to ask a developer or seller. It is general information, not legal advice, and every building's registered regulations take priority.

What are common area fees in a Phuket condo?

A Thai condominium has two parts: private units and common property, such as the land, structure, lobby, lifts, corridors, pool, gym and car park. Under the Condominium Act, the common property is managed by a condominium juristic person, a legal body made up of all the co-owners and run by a manager and committee.

Common area fees pay for the day-to-day running of that property. Typical items include:

• Security guards, CCTV and reception staff
• Cleaning, gardening and pool maintenance
• Electricity and water for shared areas
• Lift, pump and generator servicing
• Building insurance
• The juristic person's office, accounts and annual audit

Private electricity, water, internet and in-unit repairs are not covered and are billed separately.

How are the fees calculated under Thai law?

Section 18 of the Condominium Act requires co-owners to share the costs of services, facilities and management of the common property in proportion to their ownership ratio, or according to the benefit each unit receives, as set out in the building's regulations. Because the ownership ratio follows each unit's floor area, fees are normally charged per square metre, so a larger unit pays more.

Section 32 says the registered regulations must state the expenses that co-owners pay in advance and how costs are shared. Those regulations are registered with the Land Office, and the Department of Lands oversees condominium registration nationwide. In practice this means the rate is fixed in the building's own documents, not by a city-wide tariff, and changing it needs a resolution of the co-owners.

How much are Phuket condo common area fees?

There is no standard rate. Fees depend on facilities, staffing, the number of units and the age of the building. Published figures from Phuket developers and agents generally fall between about 30 and 100 baht per square metre per month, with resort-style projects that include large pools, gyms and 24-hour staff at the higher end.

The example below shows how the per square metre rate turns into a yearly bill. The rates are example figures for illustration only, not quotes for any project.

Unit size	Example rate	Monthly cost	Yearly cost
35 sqm studio	50 baht per sqm	1,750 baht	21,000 baht
60 sqm one bedroom	60 baht per sqm	3,600 baht	43,200 baht
100 sqm two bedroom	80 baht per sqm	8,000 baht	96,000 baht

Many buildings bill a full year in advance, and new projects often ask for the first 12 months at the transfer appointment. Add this to the costs in our Phuket property transfer fees guide so the cash you need on transfer day is clear.

What is a sinking fund and how is it different?

A sinking fund is a reserve for large, irregular costs that monthly fees are not meant to cover, such as replacing lifts, re-waterproofing the roof or repainting the facade. In most new Phuket projects it is a one-off payment per square metre collected when the unit is first transferred. Published Phuket figures are often in the range of a few hundred baht per square metre.

• Common area fee: recurring, pays running costs, billed monthly, quarterly or yearly.
• Sinking fund: usually once at first transfer, held as a reserve, not refundable when you sell.
• Special levy: if the reserve runs out, co-owners can vote for a top-up.

When buying resale, the sinking fund has normally already been paid by the first owner, but confirm this in writing. If you are buying before completion, check the payment schedule in the sale contract, as explained in our off plan condo Phuket guide.

What happens if fees are not paid?

Under Section 18/1 of the Condominium Act, owners who pay late can be charged a surcharge of up to 12 percent a year, rising to up to 20 percent a year when arrears pass six months, and long-term debtors can lose access to common services and voting rights. Unpaid fees also block a sale: under Section 29, the Land Office will not register a transfer without a letter from the juristic person confirming the unit has no outstanding debts.

For buyers, the debt-free letter is a useful safeguard. Ask the seller to obtain it before the transfer date, and make sure any arrears are settled by the seller, not passed on to you. Our condo title transfer process guide walks through the paperwork on the day.

Questions to ask before you buy

• What is the exact rate per square metre, and is it billed monthly or yearly in advance?
• How much is in the sinking fund, and has the building used it recently?
• Can I see the last audited accounts and the latest co-owners meeting minutes?
• Has the fee been raised in recent years, and are any major repairs planned?
• Does the developer pay fees on its unsold units?
• What percentage of owners are in arrears?

Fees also affect returns. If you plan to rent the unit out, deduct common area fees from gross rent when you work out net income, as shown in our Phuket condo rental yields guide. Foreign buyers should also check the building's foreign quota, covered in our Phuket condo foreign quota explainer.

Phuket condo common area fees FAQ

Are Phuket condo common area fees tax deductible?

For owners who rent out a unit, running costs may be relevant to rental income tax, but the rules depend on how you file. Ask a Thai accountant about your own case.

Can the management company raise the fee on its own?

No. The rate comes from the registered regulations and co-owner resolutions, so an increase has to go through a co-owners meeting and be registered.

Do I pay common area fees on an empty unit?

Yes. The fee is linked to ownership, not use, so it is due whether or not you live in or rent out the condo.

Who pays fees on unsold units in a new project?

The developer is treated as the co-owner of any unsold units and should pay their share. Ask to see evidence of this in the juristic person's accounts.

Photo: Karon Beach, Phuket, by Emge, via Wikimedia Commons, licensed CC BY-SA 3.0.