Sinking fund — what it means
A sinking fund is a one-time contribution to the condominium’s capital repair fund, paid by the owner at unit handover; the typical range in Phuket is 500–1,000 THB per m². The fund pays for major works: façades, lifts, pools, building systems.
Why a condominium needs a sinking fund
The Condominium Act obliges co-owners to share the costs of the common property. The sinking fund is the capital side of those costs: a reserve for major repairs that monthly fees cannot cover. Unlike the CAM fee, it is a one-time contribution at handover; if the fund runs dry, the general meeting can approve an additional levy.
What the buyer should check
In a new build — the size of the contribution and how it can be indexed under the contract. On a resale, the state of the fund itself matters more: request the balance from the juristic person, look at what major works the building is facing, and confirm the seller has no arrears. An empty fund in an ageing complex is a harbinger of extra levies.
How this works with us
We include the sinking fund in the full purchase-cost calculation before reservation, so the contribution is no surprise at handover. In the group’s projects the terms are fixed by contract — at Layan Verde, for example, it is 850 THB per m²; these are the terms of specific projects, not a market standard. On resale deals we request the fund balance and the seller’s arrears from the management.
Frequently asked questions
What is a sinking fund?
A one-time contribution to the condominium’s capital repair fund, paid by the buyer at unit handover. It finances major works: façades, lifts, pools.
How much is the sinking fund in Phuket?
The typical range in new projects is 500–1,000 THB per square metre, paid once. The exact rate is fixed in each project’s contract.
Is the sinking fund paid every year?
No, it is a one-off payment at handover. If the fund is depleted, however, the owners’ general meeting can approve an additional contribution.
Full cost of buying: every fee and charge →
Primary source: Krisdika — Thai law compendium
See it on a real property
Terms matter when there is an actual deal behind them. We will show how this one works on a project from the catalogue — documents and numbers included.
Browse the catalogue