Samui Residential Market Report H1 2010

1h 2010 | residential

thailand

Samui ReSidential RepoRt

Condominium & Villa
ExEcutivE Summary
Condominiums are fast becoming part of the landscape in Samui after the first units were supplied
in 2007. there are now nearly 340 units as of H1 2010.

most existing and future condominium developments mostly cater for the high end market,
although others are more modest in scale and affordability.

markEt indicatorS the majority of residential units are used in one way or another to cater to the hospitality industry
as the nature of the island makes this an attractive option for buyers seeking to generate income.
2h 2009 1h 2010
many villa projects remain on hold for financial reasons after the global downturn and thailand’s
Supply domestic political woes over the past eighteen months.
launchES
Villa developments are expected to continue to be supplied in the next few years, especially in the
pricES Bo phut and Cheong mon area.

takE-up

www.colliers.co.th

saMUi residential rePOrt | 1H 2010 | Condominium & Villa

Zoning
bungalows. nightlife in Chaweng is very popular
Bang Po: Bang po beach is located on the
due to the wide assortment of restaurants and
northwest of Samui and contains very limited
bars. there are a limited number of residential
accommodation, however this is set to change
projects in the area, as it is mostly occupied by
over the next few years. there are few tourists
hotels, restaurants, bars and shops.
and shopping facilities in this area although a
number of restaurants operate.
lamai: this area is comprised of lamai beach
and Hua thanon beach. lamai is the second
Mae nam: mae nam beach is located in the
longest beach on Samui, and although lamai is
north of Samui and there are many 4 - 5 star
smaller than Chaweng it also has a number of
hotels and restaurants along the road and
luxury hotels and high quality eating and
beach.
drinking establishments as well as guesthouses
for backpackers.
Bo Phut: this area contains the widest variety
of facilities and real estate on the island. Visitors
south Coast: the South Coast beaches are
can find the fisherman’s village, mid-range to
amongst the least developed part of Samui with
upmarket restaurants, cafes and bars, luxury
only a few resorts along the beach, so these
hotels to budget guesthouses and residential
places are peaceful and suitable for relaxation
projects.
and where you can find local seafood
restaurants.
Cheong Mon: Cheong mon is located in the
northeast of Samui. this is the most popular
West Coast: this area is comprised of nathon
area for residential projects on Samui. this
beach, lipa noi beach, taling ngam beach to
area is not far from airport, and many foreigners
thong tanote beach. the Ferry pier and local
choose to live here as it is a relatively tranquil
government offices on Samui are located in
location
nathon beach, so this area is very busy in the
day time; meanwhile in taling ngam the area is
Chaweng: Chaweng is the most well known
very quiet.
and longest beach on Samui, and accommodation
ranges from 4 – 5 star hotels to budget

COLLIERS INTERNATIONAL | P. 2


Samui condominium markEt

currEnt Supply, h1 2010

Source: department of land, Colliers international thailand Research

many residential projects on Samui are small in project in Samui was registered in 2007, and
nature and some of them are not officially since then the figure has grown every year,
registered at the department of land, due to a especially in 2009 with around 150 units
number of them planning to change from completed and registered. For the first half of
residential use to that of hotel. therefore the 2010 around 60 units were supplied and
number of condominium units listed here may approximately 330 units are scheduled to be
be slightly less than the real figure. completed for the whole of 2010.

the average unit per project on Samui is just
30, due to some projects on the island only
having 7 – 8 units. the first condominium

By location

Source: Colliers international thailand Research

around 64% of condominium project units on in the next few years condominium projects
Samui are located in the Bo phut area; Bo phut will pan out from Bo phut to the surrounding
is not far from the airport and has its own beaches, such as mae nam, Cheong mon and
nightlife area as well as being close to Chaweng. Bang po
there are also many retail outlets in this area.



FuturE Supply

cumulativE FuturE Supply SchEdulEd to BE complEtEd during thE yEarS 2010 – 2012
By location.
(aS oF h1 2010)


Cheong mon is the new area for condominium for new condominium projects in the Bo phut
projects in the years 2011 – 2012 with area therefore no new supply is due in the next
approximately 230 units scheduled to be couple of years. lamai and the West coast will
completed by 2012. Bang po also has 140 new see the first condominiums rising this year.
units that are scheduled to be completed in
2012. there is a lack of supply of land suitable

takE up ratE

takE up ratE oF all projEctS in thE markEt, aS oF h1 2010


the take up rates in Bo phut and Chaweng are phut area there are nearly 220 condominium
higher than in other locations, this is due to units, while Chaweng has around 60 units.
these areas being not far from the airport and although Cheong mon is not far from the
equipped with various facilities, such as airport; due to limited facilities and high prices
restaurants, hypermarkets, convenience stores, for units here, the take up rate is considerably
hospitals and entertainment. However in Bo lower.



pricE

SElling pricE oF total projEctS on Samui

SElling pricE (thB / Sq m.)
ZonE
min. max. avg.
Bang po 33,500 146,000 113,375
maE nam 39,500 80,000 59,750
Bo phut 40,000 67,000 53,500
chEong mon 52,000 130,000 80,717
chawEng 55,200 99,000 77,100
lamai 34,500 35,800 35,150
South coaSt 120,000 125,500 122,750
wESt coaSt 154,500 156,500 155,500
average PriCe 69,886 110,400 92,049

avEragE SElling pricE oF total projEctS on Samui


prices differ based on location in terms of units by the beach while lower rates can be
beach access, road access and attractiveness found in other zones due to the units being
of the area. the West Coast is based on limited located some way from the beach.
supply so may not be a good indicator. the
more expensive locations contain condominium



Samui villa markEt

note: this report consists of research in regards to multiple villa developments. individual villas
are excluded.

currEnt Supply By yEar, h1 2010

Source: department of lands and Colliers international thailand Research

Samui is a newly emerging residential location cases the data is not included in the report.
in thailand. the first residential projects in
Samui, especially in the housing or villa market Some developers sell off plan and then base
started in 2004. Before that time development their financing on payments from buyers. Some
consisted of only individual villas. have little experience in real estate and there
have been examples of projects being suspended
the average number of units per project is less due to poor project financing and planning. this
than 20 and some consist of only 2 – 4 units. has plagued the residential market in the past
the villa market is still in its infancy and appears but there are signs of growing maturity.
quite volatile to the fluctuations of the market.
Some developers build only one villa at a time additional supply in H1 2010 amounts to nearly
and future building has been put on hold, others 100 units, so the total number of villa units in
consist of one villa only but the size is usually Samui is approximately 350 units in the first
so substantial that the developer will give it a half of 2010.
name in order the market the product. in these



currEnt Supply By yEar, h1 2010

Source: department of lands and Colliers international thailand Research

Bo phut is the most popular location for the taken hold in relatively sparse locations such as
residential market although more in terms of mae nam, Cheong mon and the West Coast
condominiums than villas. this is due to compared to the relatively small condominium
relatively convenient transport and access to a growth. these areas have significant land
wide range of restaurants and family available for landed property compared to the
entertainment facilities. Villa development has busier Chaweng zone for example.

FuturE Supply

cumulativE FuturE Supply SchEdulEd to BE complEtEd during thE yEarS 2010 – 2012
By location. (aS oF h1 2010)


more than 440 units are scheduled to be 100 units or approximately 25% of total are
completed in 2012 and 165 units or around scheduled to be completed in 2012.
37% will be completed in 2011.

the developers are interested to develop villa
projects in the Cheong mon area, more than



takE up ratE

thE takE up ratE oF all projEctS in thE markEt, aS oF h1 2010


the take up rate in the West Coast area is the north part of West Coast area as these
around 60% higher than in other locations, areas are not far from the airport and close to
followed by Cheong mon and Bang po areas various facilities, such as restaurants,
with approximately 48% and 32% respectively. hypermarkets, convenience stores, hospitals
Villa projects in the West Coast area shown the and entertainment venues.
highest rate, but most of the units are located in

rESidEntial dEmand drivErS

Flights

most people enter Samui from the air. it is transferred. this makes the island more
possible to take a ferry but this is time consuming susceptible to the political dramas in Bangkok
for all but budget travelers and they are more as evidenced by the airport blockade and april
likely to use Samui as a springboard for Koh /may riots in 2010. it also deters travelers from
phangan. Samui suffers from a limited number visiting from Bangkok and using Samui as a
of direct international arrivals and domestic second home due to the high ticket prices. this
flights from Bangkok are prohibitively expensive means that developments are more focused on
when compared to those of other resorts. the high end market.

the upshot is that many international visitors
will have first arrived in Bangkok and then

internal transport

Great strides have been made in the road making navigating the roads difficult. the recent
system on Samui over the past few years but improvements to the road have also had an
the island still suffers from a lack of adequate adverse effect in that car drivers and motorbike
infrastructure especially during the rainy riders are going much faster and accidents,
season when flooding can seriously effect often fatal, are commonplace and negatively
traffic. also the island suffers from poor signage affect the image of the island.



Growth of retail

the emergence of a strong retail sector on the destination due to the handiness that
island has meant that Samui has become a hypermarkets down to the convenience stores
more attractive residential and holiday provide.

entertainment

the Samui experience is one of chilling out and its growing focus on family style theme parks.
relaxing during the day and enjoying the However from a western perspective this is to
restaurants and partying at night. this is its advantage as many are repelled by a more
appealing to western travelers but less so to the disneyland approach and will seek out a laid
asian market where daytime entertainment back resort area. this means that the Samui’s
facilities are a more significant attraction in a growth is taking another direction to the other
holiday. this puts Samui at a disadvantage resorts.
compared to phuket but especially pattaya, with



touriSm

viSitorS BookEd into hotEl roomS in Samui By quartEr

Colliers international thailand Research Source: office of tourism development

in Samui, tourism is the key driver of residential again at the end of 2009. although the last are prohibitively expensive compared with
real estate in terms of buyers often being quarter was relatively tranquil for thailand as a flights to phuket and deters less well heeled
returning tourists wishing to invest in property whole, Samui was affected as many travelers visitors. this means more development in the
and the end users of these products utilizing the book their holidays months in advance and so luxury end of the market and the lack of mass
hotel function. the effects of traumatic events are felt a long tourism bestows Samui with a more exclusive
Condominium and villa usage is different from time after. this can be seen by the sharp appeal, reinforced by the limit on high rise
that of Bangkok in that the majority of units reduction of tourists from mainstay markets in construction. it is partly for these reasons that
function as hotels or even serviced apartments europe during this time. the island hosts a number of specialized
and as such developers have sometimes altered wellness resorts such as Kamalaya Koh Samui
the design to reflect this with facilities expected there are few countries that dominate the while other resorts offer a strong wellness
in a hotel or serviced residence. owners often market as visitors come from a wide range of component. this is a growing and lucrative
can offer their units into a pooling system with countries and the thai market is relatively small niche which could also be developed to take into
apportioning of revenue based on unit size. as compared to other resorts, although this group account the burgeoning number of retirees from
many owners use their units infrequently this has bucked the trend in Q2 2010 by actually europe, Japan and the uSa.
system offers flexibility and a good potential increasing from the previous quarter. this was
rate of return. However the residential market is due to Bangkokians escaping the disturbing
therefore dependent on the vagaries of the events in their city and time will tell if this growth
tourism market and the recent protests and can be sustained.
rioting in Bangkok have affected the market.
Samui is also limited by the number of flights
the airport blockade brought tourism to an allowed in at the airport and its reliance on
almost standstill at the end of 2008 as most domestic flights. the short runway means that
visitors use a plane to come to the island and so large wide body jets cannot be accommodated
this event dramatically affected arrival numbers. thus restricting direct flights from europe which
Recovery was strong after the blockade but fell use such longer range aircraft. domestic flights



outlook
due to it being an island and an expensive one to reach, the opportunities for the development of Samui are limited compared to other resorts in
thailand. this may be no bad thing as many living in Samui are there for that very reason and do not wish the island to be awash with new projects.
there are also concerns about the water supply being adequate for future supply. these limitations mean that Samui can grow not necessarily in
terms of quantity but rather quality with the emergence of higher end projects with eclectic designs that fit into the natural structure of the island
rather than deflect from it.

the residential market in Samui is greatly dependent on the tourism market as most projects have a hotel/serviced apartment component. potential
buyers will be keenly aware of the ups and downs in the Samui tourism market as visitors provide the mainstay of income on most properties.
therefore the market is likely to remain volatile while thailand is mired in political uncertainty and the global economy teeters towards another
recession.



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