|
Thursday, May 1, 2008
Welcome to www.samuipropertyonline.com,
the online version of Samui Property, an independent monthly property &
real estate newspaper published by Siam Map Co. Ltd., Koh Samui,
Thailand.
Samui Property offers impartial, objective
news articles, stories, legal advice & information, zone maps, photos,
classified adverts and features about real estate, property, villas,
developments, homes, house and land for sale and other real estate
related items on Koh Samui.
Please come back every month for fresh
news and information on the Koh Samui Property & Real Estate Market.
Smiley Happy People
As tensions and concerns over the future lift, Samui is rapidly returning to the happy relaxed atmosphere it's always enjoyed.
Despite issues and concerns over the legal issues surrounding buying property in Thailand, the law has not been changed in a very long time. However, the new government has already started to produce measures aimed at stimulating the property market and foreign investment.
At last it appears as though legal changes will be made that will once and for all clarify the situation and make property investment even more secure.
Many of the fears that were experienced by property owners and potential investors during the military rule have already been dispersed. For a while, all of the announced reports and proposals suggested that things would become more difficult for foreigners to buy property. Now it seems more likely that the opposite will actually be the case.
The first positive change has been the removal of the 30% rule. Bank of Thailand Governor, Khun Tarisa Watanagase, announced the lifting of the controversial unremunerated reserve requirement (URR) with effect from the 3rd of March. The measures had been in place for nearly 15 months, during which time foreign investors were forced to hold in reserve 30% of all short-term capital inflow into the country.
Next was the announcement that tax breaks would be introduced to stimulate the property market. Transfer Tax and Business Tax, relating to the buying and selling of real-estate will both be slashed to 0.01% from 2% and 3.3 % respectively.
Now the government has also announced that the Foreign Business Act (FBA) will be amended to encourage foreign investment and even make it easier. Deputy Prime Minister and Industry Minister, Khun Suwit Khunkitti, stated, “Some regulations should be revised in order to make things easier for foreign investors, including the work permit and visa process.”
Changes to the act are likely to focus on the setting up of legal businesses which can own land; on visa rules; and also on the current work permit requirements. The changes will be used to promote the government campaign, “Thailand Investment Year 2008-2008,” which is being launched worldwide.
The timing of this announcement is perfect for the property market on Samui. Real-estate on the island has proven itself to be a robust and stable industry, surviving the difficult times of the past and continuing to look forward to a brighter future.
Sales were obviously affected by the country’s problems and by the knock delivered to buyer confidence that resulted. Tourism was also unavoidably affected by the rocky political situation. So, as the two major income generating industries and employers, this caused noticeable concern on the faces of most Samui residents. However, property sales never stopped on Samui, they just slowed down. Many developers, agents and buyers foresaw that things would settle and made intelligent investments during price slow-downs and reductions.
Major investors pressed ahead with their projects. For example, Four Seasons, Conrad, Banyan Tree, W Hotels, and D2, all announced their arrival on Samui and helped to restore confidence in the future market. Developers such as Lynx Developments, Profmil, Horizon Homes, Kalara International Properties and Frangipani Bay all continued to sell out their projects.
Established and respected agents such as Koh Samui Land & Homes, Samui Villas & Homes, Kalara and Horizon Homes have all survived the difficulties and are now being inundated with new enquiries and interest.
Much of that is renewed interest coming from those who had deferred their decision to buy whilst the political uncertainty remained. Now those buyers are rushing to complete their purchases before the prices inevitably start to rise again. But, importantly, there are many new global investors also being attracted to the island with its high-profile and upmarket status.
International hotel chains, the introduction of international real-estate agencies such as CBRE and Savills, the expanded and greatly improved airport together with airline competition and the arrival of Thai Airways on the island are all major signs of a prosperous future for tourism and real-estate.
The marketing power of international hotels and airlines promotes Samui to a much wider range of potential visitors. And, as has been previously proven, every visitor is a potential property investor.
Even before any of the government’s proposed amendments were put into place, property sales increased dramatically in the early part of the year. Therefore, once such measures actually begin, the market can expect to flourish.
Samui has a universal attraction, which can be evidenced by not only the ever-growing list of nationalities visiting the island, but also by the diversity of the resident population and the facilities that are now available.
Amenities and activities continue to expand and cater to all those who visit the island, choose Samui as a home, or who simply want to benefit financially from buying a home which can provide a rental income whilst enjoying considerable capital growth. Shops, restaurants, the climate, the outstanding natural beauty and low cost of living on Samui all combine to provide the kind of tropical lifestyle that is alluring to people of all ages, nationalities and circumstances.
Samui is currently living under an aura of optimism and expectancy, and the smile is firmly back on the faces of most businesses and industries associated with the island; none more so than real-estate. If the government continues to work towards making the buying of property a more widely, legally-accepted, and clearly understood process, then Samui will undoubtedly achieve its incredible potential as a world-leading holiday and residential destination. |
