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Koh Samui Real Estate News
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Koh Samui Luxury Property Market
2008-09-08
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Despite concerns over a global economic slowdown, property professionals on Koh Samui still see plenty of reason to push forward with residential development, especially at the high end of the market. A diverse client base, coupled with a growing international reputation and strong brand investment look set to help Samui weather yet another potentially damaging storm. Jules Kay investigates.
The worldwide credit squeeze and the dramatic fall in US and UK house prices have prompted much talk of a global recession of late. As a result, transaction volumes have been lower than expected on Koh Samui as investors hold off on purchase decisions until the market offers more certainty. Other resort destinations like Pattaya and Hua Hin continue to attract significant numbers of Thai property investors and although there has been an increase in Thai investment on Koh Samui, particularly in the resort sector, demand for residential properties remains highly dependent on foreign buyers, meaning the market is particularly susceptible to global concerns.
Foreign buyers at the medium to low end of the market, especially those from countries that have historically favoured Thailand, are now questioning the feasibility of second home investments in the context of rising inflation and less easy access to finance. The threat of recession and consequent job losses has many salaried professionals opting to save their cash rather than spend it.
On Samui, the above-mentioned uncertainties have clearly had a profound effect. But at the same time, many developers on the island are operating with the benefit of hindsight, having already experienced the market slowdown that followed Thailand´s year of military rule. These firms are sufficiently funded to ride out the low season months and have learned to adapt to the market and offer solutions that suit the needs of those clients still keen to invest in resort properties. As a result, construction continues island wide and new projects are launched on a regular basis, some of them surprisingly large in terms of both their scope and level of investment.
The period of consolidation during the months leading up to last year´s election transformed Samui´s international image, with larger, global companies seeing the island´s potential as a competitor in the same league as Phuket. Ease of access, developer friendly topology and a fast-growing choice of natural assets and commercial attractions quickly pushed Samui up the list of desirable residential destinations. When well known branded resort chains added their seal of approval by announcing mixed use projects on the island, the market´s future began to look brighter than it had ever been.
Thailand’s residential resort market has always followed the whims and successes of the tourism industry. Sales of resort properties are often re-enforced by high visitor numbers and prices driven up by the arrival of high end resorts and their high net worth guests. On Samui, visitor numbers rose from 600,000 in 2000 to around 1.5 million in 2007, but perhaps even more significantly, the type of visitor switched from budget to mid-range and increasingly high-end travellers. The benefits of this change included a wider client base and a more diverse range of developments that began to attract greater worldwide interest.
In the current uncertain economic climate, Samui-based property professionals say two distinct markets are experiencing high levels of interest and activity. According to Rodney Waller from Lynx Properties, the luxury end of the market, with properties priced over Bt30m continues to attract high net worth buyers. "These clients tend to be less price-sensitive”, he said in a recent article. “Conversely, at the low-end of the market, where property is typically priced under Bt9m, property is also moving, especially where mortgage financing is available for non-Thai residents".
In addition to these private buyers, Waller claims that shrewd private and institutional investors are also acquiring land and property on Samui that in 3-5 years time will be considered a real bargain. Improvements to the airport, with increased flights and the introduction of new airlines and routes, along with higher quality construction and improved infrastructure, all suggest Samui is working towards a more sophisticated living environment.
Similarly, in terms of its client base, Koh Samui´s profile has never been so high-end. The big brand investments now include Conrad, W Hotels, Banyan Tree, Hyatt and Dusit. These global players clearly believe the island is ripe for expansion, and perhaps more importantly, such brands have the influence and finances to actually impact on Samui´s long-term future. Minor Group’s The Estates Samui, a project comprising 14 ultra-luxury villas linked to the Four Seasons Hotel, is a prime example of how high-end brands can add cachet to a destination and help to raise its profile both domestically and internationally. The award winning Dhevatara Cove and Dhevatara Residence projects further demonstrate how developments on Samui are gaining in profile. These luxurious estate developments in Lipa Noi and Bophut have won multiple international awards, setting the standard for future residential projects on the island.
Independent developers on the island are finding they now have to offer the same level of luxury and sophistication as their more established counterparts. Developments such as Chaweng Sila, a collection of 3 and 4 bedroom villas situated on a hillside overlooking the famous Chaweng Beach, boast individual infinity pools, close attention to architecture, design and landscaping, as well as impressive amenities such as fitness centres, spas and gourmet restaurants. Samui-based developer Vertuz is building an ambitious luxury resort in an enclosed private domain, offering 28 apartments and 6 penthouses with facilities to rival those of any luxury branded hotel. And Napa, being marketed by Indigo Real Estate, is stretching the upper limit in terms of prices with ocean view exclusive villas perched above Cheong Mon Beach on the island´s north coast selling for Bt61m.
It is not just hotel brands and developers that have woken up to the potential of the Samui market; leading international real estate agencies such as CBRE and Engel & Volkers have recently established a presence on the island. CBRE’s Samui office opened in 2007 in response to growing investor demand and the emergence of new quality developments on the island. “It is clear that Samui is an upward moving market”, said Ms. Prakaipeth Meechoosarn, manager of CBRE’s Samui office. “Although 50 percent of the villa developments in Samui are in the US$1m and below bracket, we are seeing an emerging market for top-end villas which achieve prices in excess of US$2m”. In July this year Engel & Volkers announced their entry into the Samui market, signing a license agreement with local agency Karala. Savills, another leading property services company, doesn’t yet have an office on Samui, but the company is already marketing a number of the island’s high-end projects such as Baan Chlay and Aqualina.
In addition to the arrival of the industry’s big players, local agencies have themselves become highly sophisticated. Kalara International Properties is already a well established name on the island. In existence on Samui since 1998, Kalara’s wealth of local knowledge and experience has helped the company branch out into developing its own properties as well as continuing to provide sales and rental services.
Despite all the positives, caution and common sense remain the buzzwords when it comes to the Samui market. What happens in the next two to three years is crucial to the island’s long-term success both as a tourist mecca and as a residential destination. Having raised an international eyebrow, maintaining the island´s appeal is now integral to many developers´ strategies and with foreign ownership issues yet to be clarified in Thailand, reputation is everything. The days of the small, off-plan development are numbered as larger firms with deeper pockets and solid foundations move in to stake their claim. The island must also face up to growing competition from neighbouring Koh Phangan, even at the higher end of the market. Developments such as Sitara Village, a stylish, eco-sensitive project near the renowned Thong Nai Pan beach, are a sign that Phangan too can attract a sophisticated, affluent clientele.
Phuket´s speedy post-tsunami recovery was largely achieved through the strategic marketing of hotels and developments combined with price reductions, special offers on flights and realistic pricing for land and houses on the island. But with the cost of construction rising by as much as 20 percent year on year due to increased transport costs and demand for raw materials, competing on price may not be the ideal solution for Samui.
The cost of importing goods has made Samui a much more expensive place to live when compared with other parts of the Kingdom. In order to distinguish itself from its big sister, many property experts believe the best market to tap into on Samui is at the luxury end of the scale. Beachside and ocean view properties are relatively hard to find in competitor destinations. This has allowed Samui to lead the field in luxury villa sales. In fact, developers often achieve higher prices for properties than on Phuket as Samui is increasingly attracting high-end travellers prepared to pay a significant premium for privacy, personal service and real luxury.
However, in addition to exclusive private villa developments, Samui’s success as a tourist destination inevitably means condominium properties are now firmly on the development schedule for the island. Several large scale beach club concepts are already under construction, specifically designed to tap into the tourist market, providing resort style facilities within a residential environment. In line with the island’s villa projects, these resort developments also have their eye on the upper end of the tourism market. Due to open in August 2009, the Absolute David Lloyd Marina Resort on Tong Krut Beach is one such example. The 75 luxury suites will allow owners access to resort facilities such as top-range sports equipment and the use of a private speedboat. Sithoranee Property’s The Sea Koh Samui, another luxury beachfront development, will offer 15 condominium units as well as 6 boutique villas, tastefully designed with minimalist forms and oriental touches. Much larger in scale is the Himmapan Beach Samui Resort and Spa, dubbed “Thailand’s first purpose-built destination resort”, the project is marketed as a “buy-to-let hotel investment” and promises a massive 14 percent yield for early buyers.
Another aspect of the market that is becoming increasingly significant is an approach to environmental sensitivity. Many of the newer developments, whether villas or condos, feature eco-friendly designs and include attempts to re-use and recycle waste and water, as well as to reduce energy consumption. A number of Thai and international firms on Samui recently signed an MOU to show support for a government-backed Green Island project. This was designed by concerned Samui residents to ensure that the island´s natural assets are protected during the next phases of development. Furthermore, the island´s largest villa rental agency, Samui Villas and Homes launched a C02 offset programme, persuading owners to add environmentally friendly features and systems to their properties, while also offering their guests the chance to offset pollution caused by their travel to, from and around the island.
With new developments coming online, infrastructure programmes scheduled and green projects receiving backing locally and from officials in Bangkok, Samui is poised to evolve once more into an altogether more established destination. The next generation of projects offer a diversity that will appeal to both tourists and potential residents, not only from Asia Pacific, but from all around the globe.
Article courtesy of Asia Property Report |
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David Beckhams Koh Samui Villa Completed
2008-07-22
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AFTER several months of construction, the home of English football superstar David Beckham is finally finished.
The Bt400 million vacation home is located in an eight-acre area in Ban Tai, guaranteed very private and secluded from the hustle and bustle of the big town.
The house has three floors and offers a beautiful view of Koh Samui, Koh Phangan and Mu Koh Angthong.
Lucky tourists who go on snorkeling trip to Mu Koh Anthong and Koh Wautalab might have a chance to see the house of the football superstar as it is painted in a very striking white color standing out in the green hills.
Beckham hasn’t had any chance to stay in the house so far because of his busy schedule.
But a source told Samui Express before that the football star has been to the island twice before to personally see the location of the house.
He came to Samui using his private jet. Almost no one new about his whirlwind visit, except a guard at the airport.
His Samui home is also not easy to access as it is built on a hill surrounded by forests. The source said Beckham loves a resort-style residence and likes to spend time by the sea. He has always wanted a private beach, the source added.
A source in the real estate and property business said the purchase of Beckham’s property was negotiated by a broker who made Bt100 million from the transaction.
The price of the land is Bt300 million and the cost of construction is around Bt100 million.
Beckham’s wife, Victoria, was said to be very happy with the new house as they have as neighbor their friend, Sven Goran Eriksson.
It was Eriksson who suggested to Beckham to buy the property when the latter was still playing for Manchester United.
The 32-year old Beckham and wife Victoria recently bought a house in Los Angeles, for about Bt560 million.
This transaction was well known but the couple kept the acquisition of the Samui property under wraps.
Beckham is said to be impressed with the pristine beaches of the island.
Another famous football player, Wayne Rooney, has also been reported to have bought a land on Samui where he also plans to build a luxury home. Article courtesy ofSamui Express |
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Napa Launches on Koh Samui
2008-07-21
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“Napa” is a Thai word that means “sky” – an appropriate name for Koh Samui’s newest ocean front estate featuring ten, US$ 1.85 million (THB 61 million) luxury villas with lofty, wide ocean views over the Gulf of Thailand.
Renowned architect Gary Fell from Gfab has combined Thai design elements with modern open plan living and large free form pools to create a chic, comfortable mix of 50’s Palm Springs elegance and tropical island hideaway. Perched above Cheong Mon Beach on Koh Samui’s secluded north coast, Napa’s ten luxury villas sit on large plots of up to 1600m².
As 3-4 bedroom bachelor pads, corporate retreat or a luxury holiday home for a modern family, Napa villas showcase large entertainment areas on split levels for maxim views. Interiors are crisp and stylish using local Asian stone and hardwoods with large built-ins and customized furniture.
“Napa is a welcome addition to Indigo’s Luxury 2008 Collection”, say Tom Travers, Managing Partner of Indigo Real Estate, “and these villas certainly fit our criteria for luxury: Great location, world-class architectural design of both inside and outside space and a well executed property management solution. We expect these to be very popular because the design/development team for Napa recently completed Samujana (also on Samui) which sold out quickly”.
Koh Samui is located in the Gulf of Thailand, 35km northeast of Sarathani. It is surrounded by about sixty other islands, most of which comprise the Ang Thong National Marine Park, but also include other tourist destinations Ko Pha Ngan and Ko Tao. Napa’s private, quite location in Cheong Mon gives easy access to the international airport and Chaweng town, the island’s main tourist area. Article courtesy of Property Report
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A higher design at Aqualina Samui
2007-10-01
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As Koh Samui becomes an ever more sophisticated destination for property buyers, new design concepts are beginning to emerge that match and even exceed the progressive ideas on display in more established destinations like Phuket and Bali.
Aqualina Samui is one such project, and will exemplify an almost futuristic approach to design with function emphasized over form and special features such as grass-planted roofs and ultra-spacious living areas.
With Gary Fell´s GFAB team as master planners on the project, it comes as no surprise that the designs challenge traditional living concepts in favour of more energy efficient, practical spaces. A seamless spill over from architecture to nature breaks down the definitions of interior and exterior, and a considered use of glazing invites the surrounding views inside.
Eighteen luxury villas will sit on a hillside in Mae Nam affording stunning sea vistas. The living concept is aimed primarily at the ´ young professional´ market, with the internal elements, furniture packages and interior designs creating a fresh, bright and clean environment that compliments the open spaces incorporated into the architecture.
Aqualina also comes with a comprehensive management package, marketed through Savills Thailand, which makes healthy yields a realistic option for those non-resident on Samui. Owners can also opt for a full service package that includes added conveniences such as housekeeping, security, landscaping and concierge services.
Jackiy Ramani, CEO at Exclusive Developments, the developers of Aqualina, brings with him 25 years of experience in the regional property business with projects in Thailand, Dubai, India, Singapore and China. Working closely with Shabir Randeree, who boasts a 2 billion dollar property portfolio worldwide, the company focuses on high-quality residential projects. “It took me 6 months to find the right architect for this project,” said Mr. Ramani. “We wanted to create something that would still look fresh ten years from now. After a lot of consultation Gary Fell and his team exceeded all expectations. It´s a very striking property, and something completely new for Thailand and Koh Samui.” Article courtesy of Property Report |
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The view from the top
2007-04-05
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The Samui property market may have slowed but not before the island had been transformed by the construction of innumerable high-end villas and homes. Almost every beach and mountainside now features one or more first class property, and the construction of luxury homes continues unabated, especially in the island’s less touristed south. Samui is still a long way behind Phuket in terms of providing exclusive residential choices, but a burgeoning ‘millionaires list’ of properties has already made a significant impact in terms of the kind of accommodation available to rent and buy.
High-end investment
The first people to build high-end luxury homes on Samui were private individuals in search of a holiday retreat. A handful of investors, many from Hong Kong, snapped up plots of prime beachfront and mountainside land, then built their own private palaces looking out over the island’s famed blue seas.
On the beach, the friendly climate meant villas could be designed as a series of interconnected buildings rather than as single houses, while on the mountainside, multi-level terraced homes became the trend amongst the island’s new rich residents, with infinity pools almost a standard requirement.
As the word spread, particularly in Hong Kong, larger developers began to buy up land on Samui and soon there was an extensive list of 5- 6 bedroom luxury properties on the books of most real estate agents. The houses catered specifically to buyers with deep pockets and investors with limitless wealth and good taste. Many sold for upwards of a million dollars, still a steal for buyers used to the multi-million dollar price tags in other parts of the region.
Dhevatara Properties were one of the big name developers to see the potential in high-end residential developments. The company now offers exclusive sites that include some of the island´s most beautiful beachfront locations. The company’s three main projects include Dhevatara Cove, where properties sell for upwards of US$2 million, Dhevatara Residence, where villas go for between US$1-2 million, and a more modest project, Dhevatara Bay, that offer houses for between US$380,000 to US$1 million. According to Mark Vinton from Dhevatara, it is mostly British people who are interested in these kinds of villa developments. “A lot of the interest comes through our connections in the UK,” he said. “But we’ve also had other interest shown from Australian, European and Middle East clients.”
Even with recent doubts caused by high-profile land encroachment investigations and the stricter enforcement of foreign ownership regulations, many analysts and developers on Samui believe it is the top end of the property market that will continue to thrive and expand, albeit more slowly than in previous years. Some major investors already have considerable interests on the island and high-end residences have already sold for upwards of US$5 million.
According to companies like Samui Diamond Properties (SDP), there are bankers, lawyers and other professionals from places like Hong Kong, China and even Bangkok still keen to invest in Samui before the next boom happens. This can only raise the bar further when it comes to the development of opulent island living.
Short-term extravagance
Perhaps inevitably on a tourist island, the property market has diversified rapidly as investors and third party agents saw the potential for different types of return. Amid the current slow-down, luxury properties that were initially seen as long-term investment opportunities have become short-term generators of a healthy, regular income for their owners. The ‘buy to rent’ concept has gained ground over the ‘buy to live’ model, and fortunately for some investors the demand for holiday rentals is constantly increasing.
“The high-end property market is currently very buoyant,” says Victor Careford from the above-mentioned SDP. “Many investors see strong potential in the island’s growing villa rental sector and the biggest demand now is for 3 to 5 bedroom luxury holiday villas.”
As the hotel sector on Samui moves upmarket, the island’s reputation as a luxury destination has also grown and the villa rental market is reaping the benefits of this. But to keep pace with the island’s hotels, villa rental agencies are continually extending their services, adding extra features to compete more effectively with the island’s 5-star resorts.
Companies such as Samui Villas &Homes (SVH), now one of the island’s largest and most respected brokers and rental agencies, saw the advantages of a full-service approach to villa rentals several years ago and have grown with demand. The company’s “Signature Collection” includes some of the most desirable properties on Samui and these remain occupied by rental clients for much of the year. The firm also offers a diverse range of fringe services that includes personal chefs, a private concierge and even baby sitters.
Large, private residences like Ban Kinaree, a majestic 5-bedroom property consisting of three separate pavilions, command from US$700 to US$1,600 a night. The villas sit on a hillside, terraced compound with luxuriant garden landscaping and spectacular views across Bophut bay. As Mark Ribail, SVH’s chief operating officer explained, demand for such properties is high. “If we’re talking about rentals, this is still an emerging market,” he said. “Because of that, it’s showing big growth. A swimming pool is still the most important feature when it comes to popularity. I’d say that the present trend is for 5 or 6 bedroom properties with fusion designs – quite modern, but with Asian finishings and furniture.”
As investors wait to see what happens in the Thai property sector, this rental trend that’s set to continue on Koh Samui with more and more quality properties being completed and added to the ‘millionaire’s list’. From the visitors’ point of view, this means there has never been more choice when it comes to luxury living on Koh Samui and the island’s high-end villas now certainly offer a range of tempting private locations and facilities.
Article courtesy of Asia Property Report |
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