Ko Samui is an island that is located off the eastern coast of the Kra Isthmus in Thailand. In 2012, the isle was granted municipality status and is now a local, self-governing body. The island, which is the country’s second largest island after Phuket, is home to a population of over 63,000 people. It maintains a hotel occupancy rate of around 73%. Its sandy beaches, coconut trees, and coral reefs draw tourists to the island.
A Renewal in the Market
The resort location is also a draw for real estate investors. Last year, Koh Samui went through a period of consolidation. Confidence is returning to the Thai property market after a time of some uncertainty. As a result, many professional companies and serious investors are concentrating on this real estate haven.
What this means is that now is the right time for a second property boom. However, this time certain investors will enjoy an increased advantage. Although the prior real estate boom saw big increases in real estate prices, the market structure today is improved by more professionalism. Companies that lack serious backing are no longer part of the marketplace.
The Issue of Ownership
If you are seeking land for sale in Koh Samui, you will find that real estate prices are buoyant as a result of Koh Samui’s hold on the interests of holiday tenants and foreign buyers. However, just like everywhere else in Thailand, the major issue with a land purchase has to do with foreign ownership. It is important to note that foreigners cannot own land in Thailand so an alternative if you are a foreigner is to lease the land over a 30-year period that is renewable up to 90 years.
Nevertheless, the foreign community on the island constantly continues to grow, due to the idyllic characteristics of the place. The infrastructure, in turn, is continually improving, partially to accommodate the foreign population. Facilities and services continue to improve as well.
Government Data on Land Valuations
The most important thing to do is to first obtain good legal advice and begin with the right real estate company. For everyone who is interested in a land purchase, the Treasury Department in Thailand has released government information that suggests that land prices in Koh Samui have increased by a significant amount. The figures show an 86% increase, compared to a nationwide increase of around 27%.
The Treasury Department reviews land values every four years and assesses over five million plots in Bangkok and over 3 million plots nationwide. In notable contrast to the price hikes for Koh Samui land, Bangkok saw an increase of just below 6%. As a result, Koh Sumi is one area in Thailand that continues to spark investing and tourist interest. Because of the tropical atmosphere, both foreigners and local investors are finding Koh Samui to be an intriguing real estate enclave.
Besides land, Koh Samui offers villas and other similar resort properties that draw investor attention. The best way to review the offerings is to book a vacation and review the properties.