Let’s Talk About Common Area Fees In Phuket Condominiums

Purchasing a condominium in Phuket will mean that you will have to pay Condominium Common Area Fees each month to cover the maintenance and upkeep of the condominium developments common areas as well as the development’s upkeep.

Depending on the developer, this cost may be referred to as a Common Area Fee, Common Area Maintenance Fee (CAM Fee, for short) or a Maintenance Fee. The fee is usually paid monthly or quarterly, while some condo development projects require payment in advance for the entire year.

What Is The Common Area?

The term “common area” refers to the portion of a condominium complex that is not comprised of separately owned units. In other words, it is classified as common area if it is not owner occupied by investors/residents.

To put it another way, it’s all the land within the development’s perimeter boundaries. This excludes the owner’s condominium units.

However, the common area does not only refer to the land; it also refers to the actual physical construction of the development, such as the bricks and mortar.

The Common Area is Shared Between Co-Owners

In a resort, each unit owner owns a portion of the common space in direct relation to the size of their unit. (For example, if the entire unit space is divided into 100 condominiums, and you own one of them, your part of the common area is 1%.)

So, what precisely do you share ownership of? The following are some examples of what the common area consists of:

  • The Landscaping & Gardens
  • The Car Park Area
  • Stair Cases, Corridors, Hallways & Pavement
  • Elevators
  • Fitness Areas & Gym
  • Swimming Pools (indoors or outdoors)
  • Condominium Lobby Area
  • General Amenities
  • Plumbing Systems
  • Electrical Systems
  • Air Conditioning In The Common Areas
  • Condominium Roof (excluding individual units)
  • All External Windows (excluding those belonging to individual units)
  • Outer Fencing & Walls
  • The Land Beneath The Development

If you possess a freehold titled property (rather than a leasehold), you will own “fractional interest” in the resort’s above areas, as well as your own unit, together with the other freehold owners. Every owner has an interest in the well-being of these sections of the condominium, which is why each complex has a CAM Fee.

Phuket Condominium Common Area Fees Explained

A CAM Fee pays for the care and repair of the above-mentioned locations on a regular basis. This involves cleaning the resort on a regular basis, maintaining the grounds and gardens, and collecting trash.

All common area expenditures, such as electricity and water, as well as modest maintenance work, such as elevator service or small paint jobs, are covered by the CAM fees.

In truth, this charge covers everything necessary to maintain the condominium looking nice and running well, including the salaries of the development’s employees.

How Are The Condominium Common Area Fees Calculated?

The Phuket Condominium Common Fees are derived by multiplying the square meters of your unit space by the pre-determined common space fee rate.

These fees vary per property, however the average common fee charge in Phuket at the time of writing is roughly THB 50.00 per square metre. For luxury condominiums, this rate might be substantially higher).

The fee for the common area is normally calculated per month, even if it is not always paid monthly. So for an example, if you are the owner of a 50 m2 condo, you would multiply the unit area by the charge rate to get the CAM cost:

50 m2 x THB 50/m2 = THB 2,500 p/m (THB 30,000 per year)

Once you realize that this modest fee protects your investment by maintaining the resort’s standard, it’s easy to see that its a sensible investment.

Who Looks After the Maintenance and the CAM?

In most cases, the Condominium Juristic Person (CJP) and/or the management office are in charge of administering the resort. The owners of many condominiums become active and create a homeowners committee. This implies that they have a voice in how the funds are spent.

Any substantial modifications to the administration or upkeep of the common space will require the permission of the owners committee if a resort is operated professionally and owners participate in decision-making.

And, at the Annual General Meeting (AGM), the owners committee members will be re-elected every two years, guaranteeing that disgruntled or “rogue” members of the committee can be dismissed.

Summary

If you purchase a condo in Phuket, you will be required to contribute a common area fee to help maintain the resort.

This cost supports the resort’s operation as well as all routine upkeep and repair, and it’s typically a little price to pay to keep the resort looking nice.

A well-managed resort will be a selling feature for potential purchasers if you decide to sell your apartment in the future.