KOH SAMUI PROPERTY MARKET
The Secrets you should know about the Unique Samui Real Estate Market
The Koh Samui property market is very different from the real estate market in other popular areas of Thailand such as Hua Hin, Pattaya and Bangkok for a variety of reasons.
The island has unique environmental building regulations limiting construction to 3 floors with a maximum height of 12 meters. These regulations guarantee to protect the island from the urbanized high-rise skylines of other beach destinations Thailand has to offer.
In addition, condominium licenses were suspended in 2015 and are still suspended to this day. With condominium sales the most vibrant robust sector of Thailand’s other real estate markets, the island’s stringent environmental laws and the suspension of condo licenses play a large part of the unique position of the Koh Samui property and real estate market.
Another aspect that sets the island apart is the higher number of affluent visitors drawn to the Island. Koh Samui offers everything needed to live the high-end luxury lifestyle whilst still preserving its tropical beauty and charm. In recent years a large number of luxury hotel brands such as Conrad, 4 Seasons W Retreat and The Ritz Carlton have invested and opened , further securing the promising outlook for high-end investment. Knight Frank Thailand Research recently published a report in the first quarter of 2014, stating the type of properties in highest demand were in the 20-40M THB (600K – 1.2M USD) price range and that homes in this price range took up 61% of the local market. With condominium sales taking up the highest share of the market in Phuket, Pattaya, Hua Hin, and Bangkok, this further defines the unique and special position of the Koh Samui property market.
WHO BUYS PROPERTY ON
By far, the majority of buyers are prosperous expatriates from Hong Kong and Singapore amongst others, looking to secure a holiday home and rental investment opportunity. However, buyers from all over Europe, South East Asia and Australia are also drawn to the luxurious lifestyle Koh Samui has to offer and the relatively inexpensive property prices when compared to Europe, Australia and other SE Asian holiday destinations. Recently, with the increase in direct flights from China and influx of Chinese visitors, mainland Chinese buyers are also becoming increasingly attracted to investing and owning a property in Koh Samui.
HISTORIC TRENDS IN THE KOH SAMUI
The very early days of the Koh Samui property market began in the 1980s. Back then foreigners who wanted to own a home here would buy a plot of land and construct the home with the help of local construction companies. This was the norm on Koh Samui for the next 20 years and then began to slowly change as both boutique developers and larger developers slowly began to grow in number. These days, with Koh Samui offering a large choice of both completed and off-plan developments, the option of buying land with the intent to build a private home has become much less attractive.
CURRENT TRENDS IN THE KOH SAMUI
The Koh Samui property market is centered on the northeast of the island from the populated areas of Bophut to Chaweng. The Bophut and Chaweng hills have always been popular areas to buy property due to convenience of location near the busy tourist centres and more so the panoramic sea views offered in these locations. In recent years, the areas of Plai Laem and Chaweng Noi have become increasingly popular with both land and property prices increasing sharply here due to the fact that these areas are the only areas on the island offering spectacular sea views within walking distance to the sea.
Current trends show increased interest in the lower end of the property market with prices ranging from 2-8M THB (60k- 250K USD), however as previously noted in this article, Miss Risinee Sarikaputra, Head of Research at Frank Knight stated in 2014, the most popular homes to purchase are 3-5 bedroom properties with living areas of 450-650 sqm on land plots ranging from 800 – 1600sqm with selling prices of 20-40M THB (600K – 1.2M USD).
The Koh Samui property market is now heading towards fully managed secure developments and off-plan sites by a large number of boutique developers many of which offer guaranteed ROIs and full property and rental management options which satisfy buyers demands.
FUTURE TRENDS IN THE KOH SAMUI
REAL ESTATE MARKET
Future trends are sure to follow those of Phuket where the property market is mature and growth has occurred in already developed areas. Residential properties in Koh Samui will become an increasingly popular and easy purchasing option. The full property management options and rental programs offered by such developments make them an easy choice for purchasers looking for a hassle free holiday home and investors looking for an fully managed healthy return on investment.
The Koh Samui property market is now in its infancy, but steady growth is sure to to be set to continue. The beauty of the Koh Samui , the availability of sustained, boutique high end proiperties and increasing number of flights and visitors to Koh Samui will ensure this. The time to buy is now !