Koh Samui Land Prices Take Off

[Samui Coconut]

RESORT DEVELOPMENT

Koh Samui land prices take off

By Chankit Trakoolwilai

The Nation

Koh Samui

Published on May 6, 2008

An influx of money from developers has spurred demand on the island

Land prices in Koh Samui are expected to rise between 20 per cent and 30 per cent a year as a number of property firms expand their investment in sectors such as retail, residential-project developments, hotels and resorts, Thailand Estates Corporation (TEC)'s chief executive Chaiyagarn Sudamphanthorn said.

TEC is a local property developer on the island.

He said land prices in Koh Samui have risen from Bt10 million per rai in 2003 to Bt60 million per rai this year for land designated for retail and commercial use.

Meanwhile, price of land designated for residential projects and located close to the beach is now between Bt15 million and Bt25 million per rai.

Land located on the hills is available for Bt5 million to Bt15 million per rai.

Chaiyagarn said demand for land in Koh Samui registered strong growth after a number of retail companies invested in the island.

These companies include Siam Makro, Tesco Lotus and Big C.

A number of luxury hotel-and-resort companies have also grown their investment in the island.

According to research by international property agency Colliers International Thailand, about 12 luxury hotels are under construction and are expected to start

operations between this year and 2011.

The cumulative value of the hotel projects is Bt30 billion.

These projects include Santiburi Residence, Conrad Koh Samui Resort & Spa, W Retreat & Residence, Dusit Resort Samui, Banyan Tree Koh Samui, Intercontinental Resort Samui, Park Hyatt Koh Samui, Vana Belle Luxury Collection Samui, X2 Resort Samui, Ibis Samui, IMM and The Sarann.

Given the strong demand for real estate in Koh Samui, Chaiyagarn estimates that land, especially stretches close to the beach and commercial areas, will touch Bt100 million per rai by 2011.

Sinthoranee Property's managing director Wuttichai Phaoenchoke, who recently expanded his business in Koh Samui and has developed a residential project under The Sea brand, said the company has invested in the island because it believes that demand for residential projects, especially from foreign investors, has strong potential.

The company also plans to launch a new resort development in Koh Samui this year.

[ClaudeFeller]

Whow!! Looks like I have to buy some rais quickly otherwise I will pay much more in a couple of years.

[Aplin]

Thing is there is too much supply and not enough demand if you look across The Island. Everyone is building, but no one is buying... look how many 'for sale' signs there are. I can't see prices going up until a decent road / pavement system is put in place and I think that is still a long way off...

Koh Samui is also pretty expensive for living long term and I think people would prefer to live in a cheaper place in terms of everyday eating, drinking and general products. Amazing place for a holiday because you are never more than 10 minutes away from a beach really, but there is already enough accommedation to meet the needs of tourists and not too many people want to live here long term in the types of houses that are being built evidently.

Like someone has already said... don't trust someone trying to sell you a house when they say 'in ten years it'll be worth 10 times more' because logically why do they not just rent it for 10 years and then sell it and make a fortune

[Nirvana]

Given the strong demand for real estate in Koh Samui, Chaiyagarn estimates that land, especially stretches close to the beach and commercial areas, will touch Bt100 million per rai by 2011.

comment =

I think somehow dreaming. Something is worth only how much some one is prepared to pay, not want the owner perceives it should be worth, realistically.

[Boater]

Whow!! Looks like I have to buy some rais quickly otherwise I will pay much more in a couple of years.

dont know if you are trying to be sarcastic here.... but simple economics on land prices would suggest YOU WILL pay more in a couple of years......

[suegha]

Like someone has already said... don't trust someone trying to sell you a house when they say 'in ten years it'll be worth 10 times more' because logically why do they not just rent it for 10 years and then sell it and make a fortune

Not always possible to wait 10 years I'm selling my house because I'm investing in the UK and need to raise capital.

I reckon I'll get 2,000,000 baht in the current economic climate, however, it will have to escalate in future.

[pliny]

Nothing quite like a vested interest talking up the market, is there?

Sure, trees grow all the way to the sky, bubbles never burst etc., etc.,etc..

One thing is for sure, the supply of gullible farang willing to pay top dollar for their dream home on plots of overpriced land they will never own is as long as the day is short.

Lambs to the slaughter led by the Judas goat of their own greed.

[breezein]

Not to difficult to figure out who is in the real estate business. Samui prices have peaked already.

[jonniebkk]

Blah, blah, blah...nothing like another developer blowing wind out of his arse I hardly think land prices have increased 500% in a few years as he states in one example!

[MSingh]

Very expensive Real Estate with Third World Infrastructure...

Thumbs down from me.

[lazeeboy]

im just glad i bought in the mid 90s ,whatever land is worth i've made a killing

[ClaudeFeller]

lazeeboy,

you will only make a killing if sb will buy..

[maccaroni man]

Whow!! Looks like I have to buy some rais quickly otherwise I will pay much more in a couple of years.

dont know if you are trying to be sarcastic here.... but simple economics on land prices would suggest YOU WILL pay more in a couple of years......

explain that to the people in Florida and all the parties who buy in an over inflated market.

[churchill]

Whow!! Looks like I have to buy some rais quickly otherwise I will pay much more in a couple of years.

dont know if you are trying to be sarcastic here.... but simple economics on land prices would suggest YOU WILL pay more in a couple of years......

explain that to the people in Florida and all the parties who buy in an over inflated market.

Different markets - supply and demand - I don't think the London market will go down as much as other regions in the UK , because of lack of housing and continuing high demand . I think the USA situation is different , where virtually anyone could get a loan to buy , and now mortgage interest rates are rising and property prices are falling are deciding to move out and leave the property to the banks ,who cannot sell , so depressing prices further.

Samui is a developing market with limited supply and potentially v. high demand for investment , 2nd homes , holiday homes , retirement homes - with not many people being able to borrow locally - When people are able to borrow more easily on the back of property in Samui and Thailand I would expect prices to go up further and even if they cannot I think the property market here is much less likely to decline and much more likely to rise than say the US , europe or UK .

[Boater]

Whow!! Looks like I have to buy some rais quickly otherwise I will pay much more in a couple of years.

dont know if you are trying to be sarcastic here.... but simple economics on land prices would suggest YOU WILL pay more in a couple of years......

explain that to the people in Florida and all the parties who buy in an over inflated market.

Different markets - supply and demand - I don't think the London market will go down as much as other regions in the UK , because of lack of housing and continuing high demand . I think the USA situation is different , where virtually anyone could get a loan to buy , and now mortgage interest rates are rising and property prices are falling are deciding to move out and leave the property to the banks ,who cannot sell , so depressing prices further.

Samui is a developing market with limited supply and potentially v. high demand for investment , 2nd homes , holiday homes , retirement homes - with not many people being able to borrow locally - When people are able to borrow more easily on the back of property in Samui and Thailand I would expect prices to go up further and even if they cannot I think the property market here is much less likely to decline and much more likely to rise than say the US , europe or UK .

well put Churchhill

[ClaudeFeller]

Anyway, there is NO legal way to buy land as a foreigner. The property market with farangs is mostly dead, thats the reason why so many villas with infinity pool are on the rental market. Respecting the unsecure legal situation (and the actual and the previous government) it is irresponsible to lease land for 30 years and hoping for a new contract after 30 years more.

[Rooo]

Anyway, there is NO legal way to buy land as a foreigner. The property market with farangs is mostly dead, thats the reason why so many villas with infinity pool are on the rental market. Respecting the unsecure legal situation (and the actual and the previous government) it is irresponsible to lease land for 30 years and hoping for a new contract after 30 years more.

Claude, so the property you own is not your's?Your wife's? I'd rather give you a good shake to wake you up,to all the transactions taking place on the island.If you want to persist with your ideas, good on you.No legal way to buy propery? Hello,set your Co up properly & you have no probs.Better check about rules & regulations, RE setting up a Thai Co.

Are you really serious that all these properties are being sold or leased as a pie in the sky idea?

[pliny]

Anyway, there is NO legal way to buy land as a foreigner. The property market with farangs is mostly dead, thats the reason why so many villas with infinity pool are on the rental market. Respecting the unsecure legal situation (and the actual and the previous government) it is irresponsible to lease land for 30 years and hoping for a new contract after 30 years more.

Claude, so the property you own is not your's?Your wife's? I'd rather give you a good shake to wake you up,to all the transactions taking place on the island.If you want to persist with your ideas, good on you.No legal way to buy propery? Hello,set your Co up properly & you have no probs.Better check about rules & regulations, RE setting up a Thai Co.

Are you really serious that all these properties are being sold or leased as a pie in the sky idea?

Are you playing devil's advocate?

Setting up a company whose sole purpose is to circumvent Thai law is unlawful and what may flow from its incorporation would be vulnerable to seizure, confiscation or some other adverse disposal.

But of course everyone does it and so that means everything will be OK I suppose......

Caveat emptor and if you shake hands with a Samui ' developer ' be sure to count your fingers afterwards.

[cobra]

im just glad i bought in the mid 90s ,whatever land is worth i've made a killing

Until you actual sell can you claim a killing or other.

Market dynamics can change on a dime, moment to moment, an errant bird flu out break rumor, a meteorological disaster,

... there'll be plenty of time for counting when the dealings done, (Kenny Rodgers).

Better sell to me for a dime on the dollar and I'll assume all future risk,

[Rooo]

Anyway, there is NO legal way to buy land as a foreigner. The property market with farangs is mostly dead, thats the reason why so many villas with infinity pool are on the rental market. Respecting the unsecure legal situation (and the actual and the previous government) it is irresponsible to lease land for 30 years and hoping for a new contract after 30 years more.

Claude, so the property you own is not your's?Your wife's? I'd rather give you a good shake to wake you up,to all the transactions taking place on the island.If you want to persist with your ideas, good on you.No legal way to buy propery? Hello,set your Co up properly & you have no probs.Better check about rules & regulations, RE setting up a Thai Co.

Are you really serious that all these properties are being sold or leased as a pie in the sky idea?

Are you playing devil's advocate?

Setting up a company whose sole purpose is to circumvent Thai law is unlawful and what may flow from its incorporation would be vulnerable to seizure, confiscation or some other adverse disposal.

But of course everyone does it and so that means everything will be OK I suppose......

Caveat emptor and if you shake hands with a Samui ' developer ' be sure to count your fingers afterwards.

Devil's advocate?Please re read my post, you will notice that I said set up a proper Thai CO,not one with fake partners.

[ClaudeFeller]

Roo,

there is no legal way except leasing for 30 years. After 30 years land is returning to the previous owner. Lucky the one who has the right to sublease the land.

A land on the name of a thai company belongs to the thai company, to the majority of the shareholders.

It does not belong to the farang who never can have a majority.

Proove that I am wrong but no hereasays from real estate agents or developpers.

[BEENTHEREDONETHAT]

The best solution is to buy a condo legally and not worry about it or having to pay the company fees or lease fees. At least for the association fees you get something in return. Just make sure you are in the 49% farang allocation.

[Rooo]

Roo,

there is no legal way except leasing for 30 years. After 30 years land is returning to the previous owner. Lucky the one who has the right to sublease the land.

A land on the name of a thai company belongs to the thai company, to the majority of the shareholders.

It does not belong to the farang who never can have a majority.

Proove that I am wrong but no hereasays from real estate agents or developpers.

Claude,

We are opening a can of worms here, I can see a debate coming on that will lead nowhere.So I will leave it at that.

[Dingojoe]

Roo,

there is no legal way except leasing for 30 years. After 30 years land is returning to the previous owner. Lucky the one who has the right to sublease the land.

A land on the name of a thai company belongs to the thai company, to the majority of the shareholders.

It does not belong to the farang who never can have a majority.

Proove that I am wrong but no hereasays from real estate agents or developpers.

Sorry Roo but ClaudeFeller is 150% correct, unless someone changed the Law last week.

And anyway what a load of crap about land prices going up, no one can sell nothing at the moment, how can prices go up when no one wants to buy, isnt it supply and demand that drives prices up, OR IS IT THAT PEOPLE PUT POSTS ON HERE, THEN EVERYONE BELIEVES THAT PRICES ARE GOING UP SO THEY DO GO UP.

I have 2 rai 50 meters from the beach I bought for a song 2 years ago, 3 Million per Rai, now if someone wants it for 3 mill you can have it now, hahahaha bet i dont get one offer, and this thread says maybe I should get what! 6 - 10 million / rai hahahaha "show me the money honey"

WHAT A LOAD OF CRAP. as I sad no one wants to buy, rent maybe, as ClaudeFeller says who in their right mind would buy something that you can never own, ohh ok i did, but who else would????????

[easer]

Samui is the land of hope and dreams! I called the same house for sell for over 2 years. Price was always 2,1 million baht. Now i called again some weeks ago (still same owner) and the price was 2,3 million baht. The mind in the real-estate buisness is that the price gone up and that it will go up even more. Possitive thinking is good in all buisness, the only thing missing in this case is the one important factor:

Buyers!

As long as there is 3 times as many house/land for sale as there is people who want to buy (and i realy cant see a change since construction is going on the speed of lightning) only asking-prices can go up. Nothing else. Its all a big fantacy to me......

[stevehaigh]

Roo,

there is no legal way except leasing for 30 years.

not true, there is the usufruct, a lifetime right of use notation made on the title doc at time of purchase. you can search for it in the real estate forum. i have one on my place in KPN.

i see a big slowdown in real estate coming, especially on the islands because or huge increase in building costs.

[Rooo]

Roo,

there is no legal way except leasing for 30 years. After 30 years land is returning to the previous owner. Lucky the one who has the right to sublease the land.

A land on the name of a thai company belongs to the thai company, to the majority of the shareholders.

It does not belong to the farang who never can have a majority.

Proove that I am wrong but no hereasays from real estate agents or developpers.

Sorry Roo but ClaudeFeller is 150% correct, unless someone changed the Law last week.

And anyway what a load of crap about land prices going up, no one can sell nothing at the moment, how can prices go up when no one wants to buy, isnt it supply and demand that drives prices up, OR IS IT THAT PEOPLE PUT POSTS ON HERE, THEN EVERYONE BELIEVES THAT PRICES ARE GOING UP SO THEY DO GO UP.

I have 2 rai 50 meters from the beach I bought for a song 2 years ago, 3 Million per Rai, now if someone wants it for 3 mill you can have it now, hahahaha bet i dont get one offer, and this thread says maybe I should get what! 6 - 10 million / rai hahahaha "show me the money honey"

WHAT A LOAD OF CRAP. as I sad no one wants to buy, rent maybe, as ClaudeFeller says who in their right mind would buy something that you can never own, ohh ok i did, but who else would????????

Maybe I am always wrong,just ask 3 people I know that have sold their land in the last 4 weeks.Maybe it's only a dream they are having lol.

To each their own,you believe what you want to believe about articles,the glass is half full or half empty so it goes.

[lazeeboy]

land is being sold .its houses that are struggling to sell,but at the right price houses would also sell ,just got to lower the price...

[Samuian]

1250 € for 1 m2 of Land on an Island with the most horrific infrastructure, customary tea money demands for almost anything?

Say I would wish to buy a quarter of one Rai = 400 m2 - it would cost me 500.000 € = 24.500.000 ThB NO House, NO Infrastructure, build yet on it!

If I would rent for, say 15.000 a month (which rents quite a decent place) this amount of money would rent a place for 1.633 months or 136 years! Double the rental and it would still be 68 years!

Someone is telling fairy tales here.

Anyone aware what 500.000 € buy, incl. proper ownership, in any place in the EU, or Australia, Canada or even in India?

Yep, Land is being "sold" for highly inflated prices, to whom on what purpose?

Pushing the price?

Speculation?

Why are so many "opportunities" still sitting there waiting for a buyer?

at least 35-50% of Commercial space is for rent/lease and just 'sitting' there.

Regarding "Company" Registrations to hold landownership, I remember that "Law Office" somewhere down in Lamai holding some thousand pre-registered Companies like "1234 Ltd.Part." gone bust, or better shut down by law enforcement.

Ah, well...

[billymitchell]

Roo,

there is no legal way except leasing for 30 years. After 30 years land is returning to the previous owner. Lucky the one who has the right to sublease the land.

A land on the name of a thai company belongs to the thai company, to the majority of the shareholders.

It does not belong to the farang who never can have a majority.

Proove that I am wrong but no hereasays from real estate agents or developpers.

Sorry Roo but ClaudeFeller is 150% correct, unless someone changed the Law last week.

And anyway what a load of crap about land prices going up, no one can sell nothing at the moment, how can prices go up when no one wants to buy, isnt it supply and demand that drives prices up, OR IS IT THAT PEOPLE PUT POSTS ON HERE, THEN EVERYONE BELIEVES THAT PRICES ARE GOING UP SO THEY DO GO UP.

I have 2 rai 50 meters from the beach I bought for a song 2 years ago, 3 Million per Rai, now if someone wants it for 3 mill you can have it now, hahahaha bet i dont get one offer, and this thread says maybe I should get what! 6 - 10 million / rai hahahaha "show me the money honey"

WHAT A LOAD OF CRAP. as I sad no one wants to buy, rent maybe, as ClaudeFeller says who in their right mind would buy something that you can never own, ohh ok i did, but who else would????????

Maybe I am always wrong,just ask 3 people I know that have sold their land in the last 4 weeks.Maybe it's only a dream they are having lol.

To each their own,you believe what you want to believe about articles,the glass is half full or half empty so it goes.

Hate to break the news to everyone, but Roo is 100 percent correct. If a thai company is properly set up, with capitalized thai shareholders ( keyword capitalized), there is nothing in the law that prevents them from appointing a foreign director of a company that legitimately can hold property, sell property, etc. and pays taxes on said activities (key words pays taxes).