Date: 27 June 2014
Knight Frank Reveals The Villa Market in Koh Samui
Koh Samui is an island off the east coast of Thailand. It is a district of Surat Thani Province that is considered to be Thailand’s second-largest island after Phuket. Presently, Samui's economy is primarily based on a thriving tourist industry. On the whole, the real estate market in Samui is in its infancy, but its villa market possesses interesting qualities.
According to Knight Frank Thailand Research, as of Q1 2014, there were approximately 420 villa units in Koh Samui. In 2012, the new supply of villas included only 16 units; from 2008 to 2012, new supply diminished significantly due to the financial crisis in the United States. Reflecting brighter global economic prospects, the highest level of new supply was added in 2013, with about 134 units introduced to the market.
Hotel-branded villas in Samui comprise only 11 percent of the total supply, whereas non-hotel-branded villas make up around 89 percent. There are now three hotel-branded villas in Samui, including The Estates, managed by Four Season Hotel; W Koh Samui The Residences, managed by W Retreat; and Conrad Koh Samui Residences, managed by Conrad Hotel. These villas are scattered around the island -- W Koh Samui Residence is situated between Bophut and Maenam beaches; The Estates Samui lies on the northwest tip of the island above Laem Yai beach; and Conrad Koh Samui Residence is located in the southwest of the island in an area called Phang Ka. The latter is quite secluded with lovely views, but the villas are far from facilities and amenities.
The majority of villas are concentrated around Cheong Mon, Chaweng and Bophut beaches. Around 198 out of 420 villa units are located in Cheong Mon; Chaweng and Bophut each boast about 58 units. These locations are popular for villa development because they are key tourist destinations with popular beaches. There are many resorts and hotels located in the areas, as well as retail outlets such as Tesco Lotus, Big C, Makro and Central Festival Samui. The emerging areas should be around Maenam and Lamai beaches, as these locales are peaceful and tranquil, with relatively beautiful beaches. Also, facilities and amenities are not too far away.
As of Q1 2014, there were approximately 213 villa units sold, representing about 55 percent of the supply. The villa units with the highest demand ranged from THB 20 to 40 million per unit; such units comprised about 60.9 percent of the supply. Villas in this price range typically included hillside locations, providing good panoramic sea views, and some distance to the beach.
Miss Risinee Sarikaputra, Director, Head of Research and Consultancy, Knight Frank Chartered (Thailand) Co., Ltd. said that the villa buyers in Koh Samui range from expatriates based in Hong Kong to British, Australian and French nationals. The recently emerging market includes the French and Russians. The buyers’ decision to purchase a villa tends to be for the lifestyle or as a second home. People buying a second home, holiday or retirement property tend to be emotionally involved in the purchase and like to visit the site and be familiar with the area prior to reserving a unit, which can lengthen the buying process. People buying a property in Koh Samui are most often owners of a property elsewhere; in many instances, they own two or more properties throughout the region and world. Location is a key factor for sales, and people pay a lot of attention to the site, views and immediate environment, including other developments and the availability of amenities in the immediate area.
The popular villa units have 3 to 5 bedrooms and land plots of about 200 to 400 square wah, with a usable area of around 450 to 650 square metres. The selling price is based on the distance to the beach, views from the unit, unit size and land plot size.
To appeal to tourists, Samui features many new retail developments, including Central Festival Samui, which just opened during the first quarter of 2014. The project is located on a 32-rai plot in Chaweng beach. There are approximately 19,250 square metres of leasable space, with approximately 400 parking spots. The Wharf Samui, a community mall in Bophut beach, is also expected to be complete this year. The project is on 15 rai of land; it will house around 168 shops on an area of approximately 5,600 square metres.
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Notes to Editors
Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank and its New York-based global partner, Newmark Knight Frank, operate from 207 offices, News Release in 43 countries, across six continents. More than 6,340 professionals handle in excess of US$886 billion (£594 billion) worth of commercial, agricultural and residential real estate annually, advising clients ranging from individual owners and buyers to major developers, investors and corporate tenants. For further information about the Company, please visit www.knightfrank.com.