Introduction:

Trends

• Branded developments continue to enter the market, comprising the bulk of products coming online.
• Increasingly limited availability of sizable parcels will restrict the number of large projects on the island in the coming years, with the pricing for the last remaining large, coastal parcels being bid up throughout Samui.
• Availability of prime land in traditional areas continues to shrink and Samui development pushes southwards along the island’s western coast.
• Tight credit conditions may cause project delays and a slowing of sales pace near-term.
• Luxury villa developments supply stable with over 60 units priced over THB 65 million in the market
  but new supply in this price range is limitedGlobal financial uncertainty is resulting in a sluggish property market. We expect demand to remain flat for the remainder of 2009.
• For those with capital (purchasers, investors or developers), there are opportunities to benefit from market softening, with current projects offering negotiable pricing.

Forward Outlook

• Samui’s strong push into the branded residential market may cement its reputation as a new luxury
  destination.
• Changes to how the island is governed may bring about changes which could alleviate concerns about necessary infrastructure development and other local issues.
• Evolving tourism sectors and widening access to the island introduce a new set of potential investors to the Samui real estate market.
• Marinas and the boating market are a developing story in Samui.
• Our short to medium term outlook for Samui’s luxury villa market is cautious as it is apparent that challenging times lie ahead.