How to safely buy off-plan property in Asia

Why off-plan exists, and what you're actually buying

Developers sell off-plan to fund construction with buyer deposits rather than bank debt alone, and they typically discount early-phase units to secure that funding. In return, buyers take on completion risk: the finished unit may differ from the marketing material, the timeline may slip, or in the worst case the developer may not finish the project at all.

The single biggest risk: how your money is protected before completion

This is the point where Thailand and the Philippines diverge most sharply.

In Thailand, there is no legal requirement for developers to hold buyer deposits in an escrow account. Payments made at each construction milestone typically go straight into the developer's operating account. If the developer becomes insolvent, buyers are unsecured creditors with no priority claim on the funds already paid. Some developers voluntarily offer escrow through a bank or law firm — this is worth asking for directly, and a developer who resists the question is worth scrutinising further. It's a question worth raising on any Thai development you're considering, including Bluroc Hua Hin or the Aceller Soitaid Residence in Phuket.

In the Philippines, Presidential Decree No. 957 (the Subdivision and Condominium Buyers' Protective Decree) gives buyers a stronger statutory position. Developers must hold a Department of Human Settlements and Urban Development (DHSUD) Certificate of Registration and License to Sell before marketing or selling any unit, and must post a performance bond — commonly cited at around 10–20% of the cost of the unfinished portion of the project — before that license is granted. If a developer fails to complete the project as approved, PD 957 protects buyers' installment payments from forfeiture and allows buyers to demand a refund with legal interest, enforceable through the DHSUD or the Human Settlements Adjudication Commission (HSAC). For Manila-area projects such as Shang Summit Quezon or Laya Shang Pasig, asking to see the License to Sell is a reasonable first question, not an awkward one.

Verify the developer's track record before anything else

A developer's history of completing projects on time is the strongest predictor of how your project will go. Ask for:

• A list of previously completed projects, with actual handover dates against original promised dates.
• Confirmation the current project is properly permitted — in Thailand this means a valid construction permit and, where applicable, an Environmental Impact Assessment (EIA) approval before sales begin.
• In the Philippines, sight of the DHSUD License to Sell and the Master Deed for the specific project — buyers have a statutory right to examine these documents before signing anything.

Confirm the foreign ownership quota before paying a reservation fee

Both countries cap the share of a condominium project that can be foreign-owned — 49% of floor area in Thailand, 40% of units or floor area in the Philippines. Quota is filled on a first-registered basis, not first-reserved, so a verbal assurance from a sales agent is not a guarantee. Request written confirmation of current quota availability from the developer or, in Thailand, the condominium's juristic person (management office). See our foreign ownership guide for the full detail, along with the country-specific breakdowns in our Thailand buyer guide and Philippines buyer guide.

Read the contract for these specific clauses

• Completion date and penalty clause — what happens, contractually, if handover is late. A vague "reasonable endeavours" clause offers little protection.
• Specification lock — a clear, itemised description of finishes, fittings and floor area, so a downgrade is a breach rather than a grey area.
• Refund terms — the exact circumstances under which you can walk away with your deposit, and how quickly it must be returned.
• Force majeure — check what events the developer can use to excuse delay, and whether normal financing or supply problems have been (improperly) included.

Use an independent lawyer

In neither Thailand nor the Philippines is legal representation a legal requirement for buying property, but skipping it is one of the most common causes of disputes cited by property lawyers in both markets. Your lawyer should be independent of the developer and the selling agent, review the sale and purchase agreement before you sign, and confirm the quota, title and permit position directly with the relevant authority rather than relying on the developer's word.

A short pre-purchase checklist

• Developer's completed project history and current financial standing
• Valid permits: construction permit (Thailand) / DHSUD License to Sell (Philippines)
• Written confirmation of foreign quota availability
• Payment protection: escrow, bank guarantee, or performance bond details
• Specification and floor plan attached as a contract schedule, not just marketing material
• Independent legal review of the sale and purchase agreement before any payment

Sources

• Presidential Decree No. 957 (full text) — dhsud.gov.ph
• DHSUD, "P.D. No. 957 – Legal (FAQs)"
• Housal, "PD 957 - Subdivision and Condominium Buyers Protective Decree"
• VIZCODE, "PD 957: Subdivision and Condominium" (performance bond detail)
• Samuiforsale, "Paying for an off-plan condo in Thailand"
• Siam Legal International, "Buying Off-Plan Properties in Thailand"
• Terms.law, "Thailand Condo Foreign Quota: The 49% Rule Explained"