Property Trends in Koh Samui

After more than ten years of sustained growthmarket on Samui as most of the properties are
on Koh Samui, the property market is nowbrand new. Management portfolios are increasing
maturing and diversifying.rapidly, however, and from next year onwards,
When it comes to market trends, in the last 5many of those in the industry feel there will be
years Koh Samui has followed a similarmore of a secondary market emerging. Until then,
development path to some of Thailand's morewithout any stock to fall back on, agents are
established resort destinations - most notably,literally having to tell people to wait for more
Phuket. In the early days, raw land purchaseshouses to arrive.
predominated, while the housing market mainlyDespite rapid residential growth, some raw land is
involved modest constructions aimed at long-termstill available on Samui, particularly in less populated
travelers rather than those looking for highareas, although prices are definitely not as
investment returns.affordable as they once were. Beach land now
One reason for the current fast-pacedranges from around Bht8 million per rai up to as
development on Samui is that after themuch as Bht40 million per rai in areas of high
millennium, international security issues and regionalconcentration like Chaweng and Bophut. Even in
natural disasters prompted a popularity boom thatparts of the island once considered inaccessible
quickly made the island one of Southeast Asia'sfor top-end clients, the larger developers have
more lucrative investment options. Success in thealready snapped up most of the best beach plots.
tourism sector led to an explosion in theThere are also still tracts of land for sale on the
construction of medium and top end hotels, ashillsides overlooking the Angthong National Marine
well as the emergence of an impressive range ofPark, meaning that large, opulent houses will soon
fine dining choices around the island. Such servicesborder once sleepy fishing villages like Ban
began to attract a new breed of visitor, and littleMakham and Ban Taling Ngam. This shift in
by little luxury properties started to spring uppreferred locations can be attributed to several
around the island, closely followed by gateddifferent factors. It's clear that many investors
residential developments and more recently,and developers believe Chaweng and the north
large-scale commercial projects.coast are already too developed and busy to
This diversification has opened up new choices forstart building luxury properties, while others simply
investors and one of the more recent trends onfeel the land prices in these parts of the island are
Samui has led private investors away from rawunrealistically high.
land purchases, with buyer focus shifting moreWhatever the reasons, with the land fast
towards finished, residential properties.disappearing, finished properties will soon take
A more permanent foreign population is beginningover as the most accessible and perhaps even
to emerge on Koh Samui, distinct in many waysthe only form of investment on Koh Samui.
from their tourist cousins. Expatriate organizationsLuxury market on Samui will continue to expand
now provide support and advice to new arrivals,and diversify, although larger stand-alone
and there is a resident social scene that appealsproperties will increasingly have to share space
to many potential investors, especially thosewith apartment buildings and smaller villas. The
arriving from within the region.dramatic increase in land prices means that
Unfortunately, perhaps due to the nature of thedevelopers are now keen to make the most of
location, demand is already greater than supplyevery single metre of land space. Some still
when it comes to the residential market, andmanage to apply intelligent, considerate designs
shortfalls are already being felt in some sectors.that offer privacy and a sense of openness to
There is currently no real secondary propertysuit the tropical location.