Buying and investing in properties in Koh Samui
The island of Koh Samui is one of the more desirable islands in Phuket for foreigners to retire, settle or keep an ‘island pad’ if they are wealthy. Expats in Hong Kong and Singapore are especially interested in Samui and the island has enjoyed a robust demand from those interested in buying and investing in properties.
Samui property is characterised by villas under project development, mostly in the luxury sector, while some low-rise condos and apartments do exists. Local expats in the know have also bought land and houses privately, usually through proxy ownership of the land title deeds through a spouse or business partner. The lifestyle presents excellent value relative to cost, but these villas don’t come cheap. Most of them boast sea views, luxury design and construction and prime location. There is very little available for under US$200,000 with prices up to a million and beyond.
Buying and investing in Samui properties relies on a fairly mature local real estate industry which has a strong presence of foreign management. However the rapid growth of property demand on this island in recent years and presence of unscrupulous individuals have led to some scandals, such as the Forest Encroachment issue that emerged in 2005. It’s therefore prudent that you have a good (trustworthy) lawyer conduct the due diligence and background, as well as true legality of the titles deeds in possession of the developer or seller. Some deeds have been fraudulently issued by corrupt land officials, resulting in all sorts of problems for the new owners.
Much of Samui’s prime property was snapped up along the East and North coast shoreline during the first wave of development 20 years ago, and is now mostly used for commercial purposes. Private villas are found mostly on the North coast in the hills behind the beach or on the beachfront in the remoter Northwest. Chaweng and Lamai beaches, which are the most popular and busy, are mostly developed and available land in those areas is very expensive.
Increasingly, new developments for those buying properties in Samui are being found on the undeveloped west coast, which affords privacy and a nice unspoilt environment but this area is quite far from the popular amenities. However, the demand continues while supply on this small island is limited and even in an economic recession developers are confident of the long term prospects of investing in properties on Samui.
In general the properties in Samui are contemporary in design, with a tropical atmosphere, good sea views and proximity to the beach. Construction, design and furnishing is undertaken by professional companies with international input, although there are some ‘cowboys’ out there to be aware of, and it’s wise to shop around and familiarise yourself with the local industry and market. The respected Asian property Magazine Property Report, has a Thailand publication that has monthly updates on the Samui property industry.
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