Koh Samui Property

At the turn of the millenium, several large investments, combined with spiralling tourist arrivals stimulated a residential property boom on Koh Samui that saw land and house prices increase as much as ten times in a very short period of time. This prompted a lot of short-term investment, with buyers looking for rapid returns. Today, the island has a network of agents and developers offering a wide range of real estate options and this suggests that property values will continue to rise. However, the legalities of foreign ownership and restrictions placed on foreign buyers have recently caused widespread concern, slowing the market down.

Fortunately, this period of quiet also created a more legitimate, secure investment environment because well-established, reliable firms saw the chance to enter the market focusing on quality and investor security. As the market bounces back, however, caution is still advised. A solid legal framework has yet to be agreed and the pricing structure is far from standardized. But with professional help and a pragmatic, long-term view, property on Koh Samui still represents an attractive investment opportunity.

For foreigners, long-term leases now feature strongly as an alternative to buying land or property through a Thai Limited Company. This approach is less ambiguous legally, although it does mean the period of ownership is cut into 30-year segments. It’s important to check the legal foundations of any purchase or lease agreement meticulously and to employ the services of reputable legal professional to ensure due diligence is followed.

Prices for land and houses can vary enormously depending on a whole host of factors beyond a property’s size and location. Local landowners on Koh Samui occaisionally increase the value of their land whilst an agreement is in the process of being finalized. They have even been known to up the price after a contract has been signed and landlords will stubbornly hold out for high rents, even risking a vacant property. Professional Thai language assistance with negotiations could save you much more than the fee for such help.

A number of large-scale housing projects were initiated during the early stages of Samui’s development. Most of the properties on these projects were sold off plan and some are still not completed. When buying into a large development it is essential to check the construction schedule, both to ensure that your property will be finished on time and also to avoid finding yourself living on an ugly building site.

Although most villas and apartments on Samui were built in the last few years, the quality of construction, both in terms of materials and engineering does not always match buyers’ expectations. It is therefore a good idea to employ the services of a professionally trained surveyor before signing a contract. It is also useful to check the reputation of the construction firm used before making a comittment.

Samui is an increasingly urban environment, especially away from the beaches and it is set to get busier. Areas close to the island’s main ring road, as well as those near the airport, could suffer from noise pollution, which may have a negative effect on the value of the property. On the other hand, less developed areas may be close to local villages, which means early morning announcements over the loudspeakers, round the clock cockerels and regular, noisy festivals. Thai people are not troubled by noise in the same way as most westerners, so this is an important consideration when choosing a location or property.

Before you buy or lease a property on Samui, it’s a good idea to fully familiarise yourself with the various beaches and areas. Do some due diligence on the neighbourhood at different times of the day and ask other residents for their opinions. Sellers are obviously not keen on pointing out problems that may affect the sale. Gated communities are a popular choice for foreign buyers, as they are generally more orderly and secure with less noise, but the houses within these developments tend to be densely packed and a lack of privacy may therefore cause concern.

Koh Samui is well served by air and sea with flights to Bangkok, Phuket, Pattaya, Singapore, Hong Kong and Kuala Lumpur and more planned. However, there are no budget airlines flying to Samui so ticket prices are considerably more expensive than fares to other parts of the country. Two ferry piers serve the mainland hourly, but the road trip to Bangkok is a long and arduous drive.

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Koh Samui Real Estate