Koh Samui property estate agents and developers are holding their breath with concern as the market is once again being stripped of the early year signs of recovery. This has happened quickly due to the increasing concern over the unstable political situation making buyer hold off on important real estate purchases.
The early months saw number returning to Koh Samui, and our own small agency saw a small number of sales in the 5 – 10m Baht price bracket, plus some speculative investments in low cost condominium products.Click to find out more about Koh Samui Property for Rent.
It is fair to say that the buyers were on the lookout for good deals and prices paid were at a most reasonable level, meaning that income returns from rentals would outstrip bank interest rates at a slow walking pace.
Attitudes of the sellers were resigned to selling to make back capital and cash resources. It is a good time to buy in Thailand and especially Koh Samui where there are bargains to be found for the shrewd investor looking for medium term (2 – 5 year) capital growth and short term income from property rental.
What we sold this year characterizes the market, where the buyers are firmly in charge. Sellers are still keen to drop prices to secure a sale. Condominium developers are also holding or discounting certain products to stimulate the market to keep bank lending to a minimum.
New products, where a certain local developer has recognized a niche are still selling. On Koh Samui a small number of developers are now concentrating their efforts on providing high quality beach front property at the 1 – 2 million Dollar price level. There is still a shortage in the market for these types of product and more opportunity for developers to feel safe about breaking ground for these types of properties. Certain developments of residential villas are just launching properties in the 20m to 50m Price bracket, 2 and 3 bedrooms and a matter of a few meters from the beach. Located just past Lamai, these properties are sure to attract attention in the Asian market for investors looking for solid income streams and medium term capital appreciation, plus a good strong brand image.
A note of caution when looking at promises from certain developers on Koh Samui. Be sure to check out the financial strength of any company that you are looking to invest your monies with. Make sure that the payment terms suit you and not the developer. Payment structure should be no more than a 30% down payment’s and then a series of other payments during the build period. Make sure that you get a lawyer to check out the developer’s ability to deliver what they promise. With a number of developers closing their doors, with unfinished properties, you are wise to carry out some strong checks. It is best you buy, choosing a reputable agent who has local market knowledge.