Most foreign buyers looking at a Thai condominium are simply told by the sales team, “the management fee is 50/sqm, the sinking fund is 600/sqm,” without it being converted into “how much do I actually have to pay each month.” You may be comparing several projects at once, with similar price per square meter, floor area, and location — but what actually creates the real difference in holding cost is the monthly management fee and the one-off sinking fund. On top of that, different developers use different terms — Common Area Fee, CAM Fee, Management Fee — making it hard to tell at a glance whether a number is expensive or reasonable.
This article converts “how much per square meter” into plain terms: for your specific unit, how much do you actually pay in year one, and how much every month after that.
How Do You Calculate What You Pay Each Month?
The formula is simple: Monthly management fee = unit floor area (sqm) × management fee rate per sqm (THB/sqm/month).
That said, this is simply the most common practical way the market converts the figure — the actual calculation should always follow what is stated in the condominium’s regulations, the juristic person’s announcements, or the sale and purchase/pre-sale contract.
Management fees commonly range from roughly THB 20–90 per sqm per month, with budget, standard, upper-mid and luxury projects falling into different bands. The sinking fund is usually a one-off payment made at handover or purchase, commonly in the range of about THB 200–800 per sqm; new Bangkok projects or upper-mid-range developments commonly fall around THB 400–800 per sqm, while some island, resort-style or luxury projects can go above THB 1,000 per sqm.
Once you have three numbers — floor area, the management fee rate, and the sinking fund rate — you can work out: your fixed monthly common fee, the one-off sinking fund due at handover, and your actual total spend in year one (common fee plus sinking fund).
A Practical Checklist: Numbers You Must Confirm When Viewing a Project
When viewing a show unit or talking to an agent or developer, go through the following questions one by one, and ask for the answers in writing, in a brochure or email:
What is the management fee rate?
Example question: “What is this project’s Common Area Fee, in THB/sqm/month? Has any adjustment already been announced?” Get a clear number, such as “55 THB/sqm/month.”
What is the sinking fund rate, and how is it collected?
Example question: “What is the Sinking Fund amount, in THB/sqm? Is it paid all at once or in installments? When is it expected to be collected?” New projects typically collect it as a one-off payment around handover, for example THB 500–800/sqm.
Where in the contract is the calculation formula stated?
Ask the other party to point to the specific clause in the sale and purchase or pre-sale contract that sets out the management fee and sinking fund, and check whether the text explicitly states “per square meter” and “per month” or “one-off.”
What is the current juristic person actually charging existing owners?
This matters especially for a resale unit — ask: “What is the juristic person’s actual current fee rate? Has there been any recent adjustment?” An older building’s fee sometimes rises from 30 to 40 or 50 THB/sqm/month, so calculate using the current rate, not an outdated advertised figure.
Are there any extra community or club fees?
Some large mixed-use developments charge extra for parking, a club, or the community — confirm whether these are already included in the common fee.
Once you have these answers, use your phone’s calculator on the spot to work out your monthly and first-year cost.
A Worked Example: 30 sqm vs 50 sqm — How Much More, Monthly and in Year One?
The figures below approximate a “mid-to-upper Bangkok” project; always confirm actual figures with the sales team for a specific project:
- Assumed management fee: THB 60/sqm/month (common for upper-mid, city-center projects)
- Assumed sinking fund: THB 600/sqm (a common range for new projects)
| Unit | Floor Area (sqm) | Monthly Management Fee (THB) | One-Off Sinking Fund (THB) | Year-One Common Fee + Sinking Fund Cost (THB) |
|---|---|---|---|---|
| A | 30 | 1,800 | 18,000 | 39,600 |
| B | 50 | 3,000 | 30,000 | 66,000 |
As floor area increases, the monthly management fee scales up linearly — a 50 sqm unit costs THB 1,200/month more than a 30 sqm unit. In year one, adding the sinking fund pushes actual spending up a level — for the 30 sqm unit, the first year effectively costs about an extra month’s worth. When comparing “30 sqm at a higher price per sqm” against “50 sqm at a lower price per sqm,” don’t just look at the property price — the combined management fee and sinking fund also have a real effect on your cash flow.
If you are looking at a project in Phuket or a beachfront resort development, the sinking fund can run to THB 800–1,000/sqm; applying the same formula, the one-off cost in year one becomes even more significant.
Using the Management Fee to Gauge a Project’s Tier and Holding Pressure
The management fee rate is essentially a signal of a project’s tier. As a rough guide:
- About THB 20–30/sqm/month: older or suburban buildings, budget-tier with basic facilities
- About THB 35–50/sqm/month: a typical mid-tier community, with standard facilities such as a pool and gym
- About THB 60–90/sqm/month: a city-center or upper-mid-tier project, with more facilities and services
- Above THB 90/sqm/month: a luxury-tier project with extensive facilities, where holding pressure is noticeably higher
That said, this is only a rough guide — a higher management fee does not necessarily mean better value, and a lower one does not necessarily mean a bargain. You still need to look at the project’s scale, density of facilities, occupancy rate, management quality, the juristic person’s financial transparency, and whether a major repair is likely in the future.
If a project calls itself “luxury” but charges only THB 25/sqm/month in management fees, ask: will this rise sharply in the future? Could it lead to poorly maintained common areas? If a project outside the core area charges as much as THB 90/sqm/month, check whether the facilities and services on offer genuinely justify that cost.
For a long-term hold or a rental property, these fees directly eat into your monthly cash flow and return on investment, so they need to be calculated clearly before you commit.
Which Answers Should Make You Cautious?
Treat the following statements as a warning sign:
“The management fee hasn’t been decided yet, the juristic person will figure it out later.”
Without a clear fee range or estimate, you cannot do proper financial planning — this is a red flag. Normally, a developer will at least have an expected standard rate.
“Right now it’s 30 THB/sqm/month, it may be adjusted later, but we don’t know how yet.”
Using a low management fee to attract buyers in a project’s early stage is common, but if the contract has no cap on adjustments, expect it could jump to 40–60 or even higher within a few years.
“These are luxury facilities, a higher management fee is normal, don’t worry about the exact number.”
Any statement that tells you not to look at the actual number should be treated with caution — it directly affects your monthly cash flow.
“How much you’ll need to top up the Sinking Fund later depends, don’t worry about it for now.”
Normal practice is to clearly state the initial sinking fund rate; any future top-up should also be discussed and decided at an owners’ meeting. An overly vague answer suggests a large one-off levy could be imposed later.
“No need to ask, everyone can afford it.”
If the other party refuses to provide the current fee schedule or juristic person’s announcement, and only offers vague reassurance, this usually signals a lack of transparency.
When you encounter these kinds of answers, the most cautious approach is to pause the decision and ask for written documentation, or go home and recalculate, rather than committing on the spot.
What to Check Next
You can keep going if: you have obtained clear figures for the management fee and sinking fund rate; the other party is willing to provide the juristic person’s actual current fee schedule, or it is clearly stated in the contract; and once you apply the numbers to your specific unit’s floor area, the year-one and monthly costs still fit within your budget.
You should pause and verify further if: the management fee is only described as “roughly” or “not yet decided”; the contract terms or condominium regulations show no clear calculation method, only a vague statement like “as decided by the juristic person” or “to be notified later”; the management fee is noticeably higher than comparable nearby properties with no reasonable explanation; or your calculated monthly management fee already exceeds 15–20% of expected rental income, which would significantly squeeze your return on investment.
Frequently Asked Questions
Q1: Can I trust the management fee rate shown in an advertisement?
Not necessarily. A management fee shown in pre-sale advertising may just be the developer’s preliminary estimate — the actual charge should follow the juristic person’s announcement at handover, the project’s regulations, or the contract terms. Ask the sales team for the latest version of the fee schedule, and confirm the contract clearly states the calculation method, the billing basis, and whether there is a future adjustment mechanism.
Q2: Is the Sinking Fund only collected once? Could it be collected again later?
Generally, a new project collects it once at handover, as a reserve for future major repairs. But if the fund proves insufficient years later, the owners’ meeting may vote to levy an additional amount. You can ask the juristic person about the fund’s current balance and whether any major repair is planned; for an older building with a major repair likely in the near term, the chance of an additional levy is higher.
Q3: For a rental investment, what share of rent should the management fee healthily represent?
There is no strict standard, but many investors use a rough rule of thumb: the monthly management fee should ideally not exceed 10–15% of monthly rent, and if it exceeds 20%, it’s worth re-examining whether the return still makes sense. Estimate a conservative rent first, then factor in the management fee to see whether the net rent still meets your return expectations — if too much is being eaten away, consider a different project.
Q4: What happens if I fall behind on management fees?
If management fees go unpaid for an extended period, the condominium’s juristic person can generally pursue late fees or interest under the condominium’s regulations, and in serious cases this can affect access to common facilities, voting rights at the owners’ meeting, and, later, the ability to register a resale or transfer, since a certificate of no outstanding fees may not be obtainable. Regardless of whether the unit is rented out or left vacant for a long period, the owner should pay management fees and related condominium charges on time.
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*Disclaimer*
*This article focuses only on how to calculate a Thai condominium’s monthly management fee and one-off sinking fund, to help you quickly convert these into actual holding costs when viewing and comparing projects. Matters such as the juristic person’s responsibilities, rental compliance, repair liability, and other legal risks involve Thailand’s broader property management system, and are not covered here — please refer to a dedicated article on those topics, or consult a professional lawyer and local property advisor.*
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Sources
- CBRE Thailand – Buying Process and Fees for Purchasing Condominiums in Thailand
- Central City Property – Condo fees and sinking funds in Thailand
- Phuket Property Group – What is Sinking Fund?
- Phuket Property – Phuket Real Estate Community Fees & Sinking Funds
- Settle in Thailand – What are common area (CAM) fees?
- LinkedIn – How Much Is the Condo Maintenance Fee in Bangkok?
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