Koh Samui, Thailand continues to offer exciting options for potential property investors. With the majority of Thai real estate being purchased in cash, with bank financing almost impossible to obtain, the underlying valuation of property and land is maintained, although most investors are foreign investors with a portfolio of properties. assets, there are now great prospects for those who have investment capital and are willing to consider increasing their real estate portfolio.
In the medium term, this island and the top 10 vacation destinations continue to be a preferred investment center for major brand hotels and spa resorts. The Conrad Hotel and the recently opened Ibis are among several being built as this tropical island continues to grow in popularity. There are also several luxury villa complexes being planned by major real estate companies, which see a bright future in the luxury destination market. Popular destinations such as Chaweng, Cheong Mon and Bophut continue to attract holidaymakers from around the world, despite recent political unrest in Thailand.
The current global financial crisis at the end of 2008 has given property buyers opportunities as many sellers are forced to reduce the price to make a sale under these difficult conditions. There are several options available, both new off-plan properties and resale properties which now offer buyers significant cost advantages. The market now approaching peak season is fairly flat, with discounted properties appearing as discounts from sellers to stimulate interest.
We are seeing discounts of up to 40% on some resale units where the owner is looking to quickly release cash from a property. A specific example of this is a recently completed four-bedroom villa in Bang Makham, originally for sale for 25 million Thai baht (715,000 USD), it has been reduced for a quick sale to just over 15 million Thai baht ($429,000).
Promoters realize that in order to maintain and promote sales, they need to offer special discounted prices to compensate for strong gains in the Thai baht against a multitude of currencies (example: the GBP has risen from 63 to 51 Thai baht since September 2008, i.e. a drop of nearly 20%). Developers and creative marketers also promote by adding some creative finance plans, sometimes including extended 3-year payment terms. Others provide longer-term private finance contracts of up to 10 years with down payments of 40% to 50% of the total purchase price.
Examples of specific special promotions are the new prices introduced by Samui Emerald Condominium In Plai Laem, Koh Samui, where they actively promote their first-class product through the sale of leasehold units, a fully furnished 44 sqm unit can be purchased for just over 50,000 GBP (2,640,000 Thai Baht) at the time of writing this article. The foreign buyer in this case would have to set up a Thai company, in order to purchase one of these special units.
Take a look at Koh Samui, Thailand as the market offers exciting opportunities for the savvy investor.