Koh Samui Property
Located in the Gulf of Thailand some 700 kilometres from Bangkok, Koh Samui is one of the Kingdom’s most coveted travel destinations. The island's real estate industry has seen a revival in recent years with plenty of activity in both the private and the hospitality sectors. While in the past reserved mainly for large scale hotels and resorts, more and more private developments are being added to the island stock, including low rise condominiums emerging in areas around the most popular centres such as Chaweng and Lamai beaches, which in Thailand is a sure sign of a maturing property market.
The global financial crisis did put a dent in demand for Koh Samui Property, but resilient developers and strong fundamentals have meant a strong recovery in both sales and demand. The latter is being driven by both Thai and foreign investors who see Koh Samui as an attractive second home destination and as a viable alternative to Phuket where increasing land prices and land rights issues have scared away investors as of late. To a larger extend than Phuket, Koh Samui still offers good value for money with beach front land still available.
During the 1990s, the island became famous as a destination where those with an appetite for risk could turn over money faster than almost anywhere else in Asian real estate, yet the success came at a price. Many would say that the ensuing building boom caused an oversupply and a disregard for the environment and the aesthetics of the island, with some developments never even coming to completion. However, the global financial crisis put an end to reckless development and only the companies with proper business practices and a strong record of success have stayed in business. The days of "buy and flip" returns are likely over, but this means a more secure investment environment for this with long term interests.
Another factor that has improved the property industry on Koh Samui is the increase in end user demand. What used to be a holiday destination only has quietly become a place where expats and foreigners increasingly choose to live. Improved island infrastructure such as better roads and electricity supply, combined with better local governance, with officials starting to pay attention to environmental issues such as water and waste management, have meant the island has become more liveable. Better schools and hospitals have further strengthened Koh Samui's Property appeal to those with families and those who wish to come to island to retire.