Koh Samui, Thailand's Boutique Resort

Why are foreign property buyers now turning to Koh Samui?

Koh Samui is a developing market that is attracting more and more reputable developers, savvy investors and far-sighted home buyers. Yes, Koh Samui might require a bit of a 'mental leap' on the part of foreigners who haven't travelled a great deal in Asia yet are seeking a location with prime potential for capital appreciation, but properties on Samui have a lot to offer that other saturated property markets do not:

• Higher gross yields due to demand in an established rental market
• More properties offering sustainable capital appreciation
• Stable growth due to the local upswing and a strong economy

There are numerous types of properties for sale on Koh Samui. Currently, the property market is continuing to focus on lavish standalone villas and luxury villa developments, but we will be seeing the launch of the condominium market during 2008. Many quality projects have already been launched but, due to zoning issues and building restrictions, these will offer a limited investment opportunity.

Why is NOW the best time to buy a property on Koh Samui?

When the Thai government established its building restrictions and zoning regulations on Koh Samui, it used those of the established property market on Phuket as the benchmark. Once the 'island of coconuts' receives its much anticipated 'city' status, more money will become available for infrastructure and property prices will skyrocket.

How can Koh Samui enhance my lifestyle or my investment portfolio?

Property on Koh Samui ranges from luxurious villas, in both secluded and beachfront locations, to value-for-money condominiums offering convenience, economy and access to the island's numerous facilities and attractions. The level of security for owners of Koh Samui real estate is relatively high by world standards due to several factors:

• A 52-week holiday season that offers potential rental yields of 7% to 15%.
• Koh Samui property is slated to exceed 20% capital growth year on year for the next 5 to 10 years.

• 2.2 million tourists visit the island annually with a high percentage of repeat visitors.

Moreover, with Koh Samui positioned to become Thailand's next international destination, combined with the planned mid-haul international routes from Samui to Dubai, Shanghai, Hong Kong, Singapore, Kuala Lumpur and Bali, an additional 14,000 overseas visitors every month will guarantee the continued growth of Koh Samui's property market.

What are the key factors supporting the growth of Koh Samui's property market?

The new Samui Airport facility currently offers of four domestic terminals and two international terminals. This enables higher-capacity aircraft to land on the island, resulting in a 62% increase in permitted aircraft capacity and an additional 14,000 overseas visitors each month, increasing monthly average passenger numbers 24%.

 

In 2006, Koh Samui had 360 hotels offering 13,290 rooms, rising to 403 hotels and 14,405 rooms in 2007. With the island attracting an influx of international hotel chains, twelve of which are currently under construction at a combined value of Bt30 billion baht (more than £450 million), the number of rooms is set to rise considerably over next five years.

 

An increase in luxury and branded residences has followed the steadily rising demand and many overseas landlords are already reaping the rewards of renting out property in a prime location as the huge demand for short-term holiday lets and long-term professional lets means high occupancy and high returns.

Who is buying property on Koh Samui and already getting ahead of the curve?

The vibrant blend of western luxury and traditional Thai hospitality is drawing a new generation of property purchaser to Koh Samui. With technology and communications that allow us to live and work anywhere and the entrance into the market of large hotels chains like the Four Seasons, Hyatt and The W, Koh Samui also has a large expat community who have been attracted by:

• A luxurious lifestyle at a fraction of the cost elsewhere
• International schools and an extensive expatriate support network
• English-speaking lawyers, estate agents, building support services, and audio-visual and IT providers

Asian Property Markets can assure you that Koh Samui will prove to be an exciting location for your holiday home or foreign investment portfolio. But just as important is what the island will do for your lifestyle, with its breathtaking scenery, balmy weather, palm fringed white-sand beaches, pro-golf courses, world-class spas, diving and water sports, fantastic cuisine and arts & culture – all the makings of a fabulous holiday and an ideal tropical getaway.

 

Speak to an Asian Property Markets Investment Consultant so you too can get ahead of the curve on Koh Samui