Destination Overview:

The island of Samui is rapidly becoming one of the region’s most popular options for property investment. The past decade has brought major changes. Thai and international investors have funded an accelerated pace of development, building high-end residential product and upscale resorts, which have transformed the face of the island.

Difficult global conditions worldwide have resulted in a challenging sales environment in Samui. As a result, it is probable that some short term effects will be evident in terms of slower development progress, reductions in new product launches as well as a weakening in property transactions and pricing.

However it needs to be acknowledged that current and upcoming supply in the top end of the Samui property market is limited and few prime parcels remain available for future development; factors, which will continue to
bolster demand in the coming years, among potential real estate purchasers.

SAMUI LUXURY VILLA MARKET SUPPLY (>65M THB)
	Luxury Villa Market 2008	Luxury Villa Market 2009 onward
North Coast	17	17
West Coast	35	59
East Coast	9	9
Total	61	85
Note: The 2008 existing luxury villa market is assumed to be the luxury inventory at projects current selling. For 2009 onward, planned luxury villas include announced projects and existing supply.

Areas To Watch:

While developments have traditionally been clustered along the northern and eastern shores of Samui, the lack of prime sites has resulted in a shift towards the west of the island. The Taling Ngam area was up until recently a fairly overlooked part of the island. Ironically it is the site of the first luxury resort on the island (the former Meridien), Baan Taling Ngam Resort with its 14 luxury villas, which successfully sold years ago. Projects in this area now include Magic Beach, the small Headlands villa development, as well as the upcoming Vana Belle Samui Resort and Spa (to be managed by Starwood Luxury Collection).

The south-western corner of Samui has been slow to develop, due to its distance from tourist areas and the airport, however it has gathered momentum in recent years with several high-end projects either underway or rumored The availability of good sized parcels, striking elevation and the unspoilt nature of this area have attracted several high end projects. As a result, the Phang Ka Bay area and neighboring Thong Krut are expected to become a highly exclusive enclave as a result. One of the first luxury villa products in this area was the striking Naissance Villas. Upcoming projects include the Conrad Koh Samui and the Park Hyatt Koh Samui, among other rumored luxury developments.

As Samui develops apace and land prices rise further, attention is focusing on neighboring island, Koh Phangan, which remains a relative bargain in comparison. At present,development activity on the island is limited and small scale in nature, but sources indicate that prime sites are in demand and that developers are already active in seeking out potential locations. The island is an interesting contrast to Samui, as it is lightly populated, less developed and has an eco-friendly mindset, which may act to check the scale and quality of development in years to come. Current developments are clustered around areas such as Thong Nai Pan and are at the lower end of the pricing spectrum. However, we expect to see some major changes to the island’s property market coming up.