
HEAD TO HEAD
The real-estate battle between Samui
and Phuket is hotting up.
Samui and Phuket share many things. Both have superb beaches and breathtaking landscapes; both attract international and domestic tourists in droves; both offer a hot tropical climate; and both are geared up to provide memorable experiences of Thailand. But, on the face of things, when comparing Samui with Phuket, there are certain very obvious differences.
Phuket is much bigger than Samui; the road network is far superior; other infrastructure such as water and electricity supplies are more consistent; and the variety of shopping choices is definitely more advanced. But does that make it a better place to live, or invest in real-estate?
There are two main reasons why Phuket leads Samui in these areas; longevity and finance. Firstly, Phuket has been established as a tourist destination for longer, the airport has been operating for longer and it has a road link to the mainland making it more easily accessible. The other and most important reason is money. Income generated by Phuket is used to benefit Phuket, whilst, currently, any income made by Samui goes to the Surat Thani province and Samui only gets a share. These factors give Phuket an unquestionable advantage.
However, despite starting later, being harder to access and having a smaller budget, incredibly, Samui has caught up with and even overtaken Phuket as a destination to go for a holiday, live on or to invest in. So, what is it about Samui that enables it to overcome such differences?
Well, there are many reasons why many people prefer Samui to Phuket, and vice versa. There seems to be a very definite response when people are asked which place they prefer. And few people appear to have the same feelings for both.
In fact, the things that attract one person to Phuket, or Samui, are the very things that deter them from the other. For example, for some people the wide smooth roads, multi-storey hotels, condominium blocks, sophisticated shopping centres and the quicker paced lifestyle of Phuket offer a far more agreeable and western-style environment in which to live or enjoy their holiday.
However, many others would argue that such factors strip the island of its Thai identity and when you’re there you could actually be anywhere in the world. These people will be far more attracted by Samui’s famous laid-back atmosphere; the friendly locals that are easy to interact with; the stunning beaches that aren’t fringed by sun-blocking, towering buildings; the simplicity of the ring-road that circumvents the island; and the very small-island natural feel and ambience that exists here. Even when in the most densely occupied tourist area of Chaweng, it’s always evident that you’re in Thailand. And, as the island is relatively small with vast areas that are, and will remain, undeveloped, you’re never very far from peace and nature.
But let’s not get too carried away. Samui is no backpacking un-westernised, remote escape. Things have moved on and it now boasts better electricity; improved roads; increased water supplies; all the big-name hotel groups; a vastly improved and bigger airport; and shopping that will soon rival that of Phuket. The main difference being that on Samui you get all of this and the small-island atmosphere, too. Also the strict building regulations and zoning laws continue to protect the beauty of the island and prevent the kind of development that could take away its tropical island identity.
Samui is no longer an add-on location for travellers visiting Thailand. For many, it’s their first choice destination. And, considering the limitations in size and accessibility compared to Phuket, Samui is now firmly established as a stand-alone international destination and a formidable adversary of Phuket in terms of attracting tourists and investors.
From a real-estate angle all of these aspects will help buyers make their personal decisions. The fact is that Samui is now competing on all levels with Phuket and other South East Asian destinations, and for a growing number it’s definitely top of the list. The reasons are that the build quality of the houses has improved beyond recognition; people know the steps that have been taken to improve the infrastructure; the future potential of the island is not in any doubt, as more major hotel groups and international companies arrive every month. And, with the prospect of Samui attaining city status in the near future, all concerns over the continuing injection of money for improvements will be forgotten.
Prices of land and houses are still cheaper here than in Phuket and, importantly, Samui’s more recent emergence as a major player means that it’s still a work-in-progress which can benefit from previous mistakes made elsewhere. Therefore, the potential for growth is far more likely here than in a relatively completed location, such as Phuket.
Another major deciding factor for investors is that, despite land and houses being more affordable on Samui, the island’s reputation as a top-end destination ensures that the rental returns on a property are actually comparable to similar properties in Phuket. So, if your investment is purely for financial gains, the rental returns figures and well documented capital growth on Samui may well make the decision for you. And the climate can also be a factor in this. Being sheltered in the gulf of Thailand provides Samui with a more consistent year-round temperature and climate than Phuket with less obvious seasonal changes. And, again, this may make your property more attractive to rent all year and therefore increase your return.
Samui has overcome many things to develop its current status as a major worldwide destination. The island’s spirit is strong and the atmosphere totally unique. Having got where it is today the potential is for Samui to progress even further and all the evidence suggests that will be the case. Both Phuket and Samui have proven themselves in the international areas of tourism and real-estate. Only an individual can decide on their personal preferences for each particular island. And, fortunately, there appears to be enough people from all around the world attracted to both destinations to keep everyone happy. |