Published by: Samui Best Homes, May 10, 2022
Imagine stepping outside of your home to coconut-fringed beaches, turquoise waters, beautiful weather and delicious local cuisines at a fraction of the price that you would pay in a Western country. Although this may only be a dream to those who dare not to experience the unordinary, those who do live the island life have delightfully never looked back. Friendly locals, a tight-knit expatriate community, and an exotic culture make the island of Koh Samui a highly sought-after destination.
For those who sink their feet into the soft, powdery-white sands, the idea of living here long-term and investing in their dream world’s future, is actually quite obtainable. And, now is the time to fulfill those dreams as the real estate market in Koh Samui is proving to be attractive and lucrative. A fastly-growing interest, business startups, and the Covid-19 pandemic have all played a part in bolstering the island’s expansive investment potential.
World-class hotels and resorts including Four Seasons, Hyatt Regency, Hilton, InterContinental, Nikki Beach, Ritz-Carlton, Conrad and others are all represented on Koh Samui. Spas, idyllic beaches and amazing wellness retreats have also attracted the likes of world-famous celebrities to visit and invest in the island. Yet, it only takes a mere glance at the beaches and stunning nature to understand why the island is consistently ranked as one of the most beautiful in the world. As seen in magazines like Condé Nast, International Living, National Geographic, and other reputable travel publications, it is clear that investing in the island is a smart and profitable venture.
Appreciating Real Estate Market
Investing in Koh Samui real estate has never been a better idea than now. With the Covid-19 pandemic wreaking havoc worldwide, the real estate market has swayed towards giving buyers an advantage. And, Koh Samui may just be the best place to invest due to its future potential as becoming even more of a prized, holiday destination that is expected to outpace that of Phuket.
Aside from buying a property for personal use, many investors have chosen the exotic island to buy villas, condos, resorts, and apartments for the purpose of renting them out to expats and holidaymakers. Such a decision to buy a property that offers a high return on investment, could help secure your financial future. Real estate market experts unanimously agree that making such an investment decision now, will secure substantial gains later.
Koh Samui is considered one of the largest business centers in Thailand. Startups are popping up all over the island as more and more long-term expats and businesses choose the island as their hub. The island is also quickly becoming a chic and lavish beach getaway destination with upscale spa retreats and world-class hotels already landing on this exotic strip of sand.
With a fast-growing tourism sector serving as a major indicator of the island’s potential, it is only a matter of time when luxury property prices increase. Seasoned real estate investors know that Koh Samui’s property prices are less vulnerable to fall in any single market, which promotes new and constant development. This only adds to an already appreciating market.
Projected Economical Growth
Thailand’s Ministry of Finance has produced optimistic research that further backs the island’s solid real estate market. It announced a 1.3% growth in the local real estate market in 2017 alone, with the number set to continue its upward trend. As Thailand has been experiencing a rapid growth spurt due to exports and private consumption, the conservative growth estimates have been met with pleasingly surpassing numbers.
Rental Property Potential
As Koh Samui’s high season is much longer than most of Thailand’s other islands, buying a rental property is guaranteed to see a great return on investment. Long and short-term rentals have shown to get annual yields of 8-10%, with certain featured properties producing over 30%. As other destinations average 4-5%, the figures show that the island’s appreciating market largely benefits investors.
Apartment and condo rentals yield an average of 900 THB to 2,000 THB (US $25 to $60) a night. Luxury villas average 2,500 THB to 25,000 THB (US $80 to $720) a night. Such an investment in property to rent means that you may earn a cushy, passive income. Villas with a garden and private pool generally start at around 4 million THB and can go up to around 75 million THB (US $120,000 to $2.5 million). Such a price is a steal in terms of how much property and amenities you will get compared to paying the same price in Europe, America or Australia.
Some villas come with a private gym, office, library, pool, garden, mountain views or even a beach-front location. Another benefit of buying a villa on Koh Samui includes the fact that most of these luxury villas come fully-furnished and feature stunning, modern décor or upscale, exotic Asian décor.
Samui Best Homes can assist you with garnering the best possible rental income through our highly-rated Villa Management and Rental Programme. We provide an unparalleled, customized management service based upon our years of experience in Koh Samui’s real estate market.
Contact us now for more information!
Weather and Location
Koh Samui island is around 750 kms south of Thailand’s capital of Bangkok. Located in the Gulf of Thailand, the island is the second largest in the country. As it features its own airport, shopping mall and a fine selection of international hospitals and schools, it is easy to call this exotic location your new home. While the rest of the country features an abundant monsoon season, Koh Samui enjoys considerably mild weather throughout the year.
In addition to its favorable weather thanks to its tropical savannah climate, the island’s Chumphon Archipelago geographical location protects it from possible tsunamis and other severe, tropical storms. This is one of the biggest reasons why the island is increasingly becoming a favorite for investors. The internal road infrastructure is also unique in that it is quite sound, even rivaling that of Western countries.
Unlike Phuket, Koh Samui island is relatively new to the tourism industry, which means it features large swaths of absolutely organic and undeveloped jungle. With amazing views, and refreshing ocean breezes, the island is quite transcendental for most visitors. Koh Samui is also the only developed island that observes strict, local building laws which aim to prevent over-building and development. Thus, such regulations as limiting building heights, and distance from the sea will undoubtedly preserve the island’s natural environment for the future.
Koh Samui’s natural beauty and untouched jungles have fused with world-class establishments, making it the perfect island for those looking to invest in a sustainable market. With the market appreciating and the Covid pandemic producing discounted properties, those who want to invest in property now won’t regret it.
For more information about living and investing on Koh Samui, check out our customized guides: