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Saturday, November 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.
Staying Positive
As the world financial crisis expands the people of Samui need to remain confident and enjoy the benefits of being here.
For a while now every news programme and every international publication has been filled with doom and gloom and misery and mayhem in relation to the global economy. Negative forecasts tend to be damaging to morale and more positive predictions laughed off as optimistic nonsense.
Take time out from all of this and try and look closely, not just at the lifestyle available on Samui, but also at the current real-estate market. How will it actually be affected? And what are the benefits of buying property on this exceptional tropical island?
First of all it’s a fact that Samui is an established and extremely beautiful holiday destination more than capable of attracting its fair share of international tourists; even if the numbers travelling around the world drop for a while. It’s now been a desirable destination for a considerable number of years and the improvements to the facilities and infrastructure has seen that popularity grow. The expanded airport and the influx of international hotel groups will also help to secure the island’s long-term future as a successful tourist destination.
It may take positive action and, in some cases, price cuts and special offers to maintain this at certain times. In the short-term, tourist numbers may drop as people have less money to spend on holidaying. However, this will probably lead to an increase in competition to attract those that do travel and therefore some excellent deals may become available. For example, EVA Air has already introduced exceptional travel rates between London and Bangkok for the majority of the first six months of 2009. Return flights inclusive of all taxes and surcharges are now available for £553.20 (around Bt33,000); if other airlines follow suit this will certainly encourage and enable more visitors to make the trip.
Hotels and villa owners may have to reduce their rates, where they can, to attract more tourists. But the most important thing is that the tourists will still arrive and support the island’s economy. Thailand remains South East Asia’s leading tourist destination and many visitors to the country will include a visit here.
As far as real-estate goes, the market on Samui has already proved itself resilient and flexible in times of difficulties. Whatever is happening around the world and around Thailand it’s indisputable that Samui remains a hot-spot in terms of international real-estate investment.
Terrorism, natural disasters, health scares, land scams, coups and continuing political turmoil, legal ambiguities regarding foreign ownership and global recessions have done very little to dampen the enthusiasm of property buyers throughout Thailand. And no serious investor will look at Thai real-estate without at least considering Samui.
Throughout everything the market has remained strong. It’s evolved and shifted focus along the way but real-estate on Samui has always been popular and properties have continued to sell regardless. At times, the number of buyers has receded but the desire to buy here has never faltered.
Asia is well placed in terms of suffering less economic damage from the fallout of the global recession. And in Thailand the economy appears stable. Some local economists and experts believe that the lack of big government spending due to the political problems and ever-changing personnel has actually, inadvertently, left the country’s finances is good shape to survive the international problems.
Real-estate remains one of the most stable financial investments available, and in the current climate it is certainly more attractive than gambling on more volatile stocks and shares. Samui’s market is well positioned and many properties are designed to provide investors with regular returns in addition to any capital growth.
But buying on Samui offers far more than that. As a retirement destination the price of homes and the lower cost of living will become increasingly attractive as other countries suffer more noticeable increases. Some who were planning to retire here in the future may consider bringing that decision forward. Selling up and bringing capital here while you still have some, may be more beneficial that sitting and watching your plans and dreams diminish and disappear. Especially when you consider the fringe benefits of living here, such as: the more relaxed and stress-free environment; the gentle climate allowing for a year-round outdoor lifestyle; the fact that even if prices here rise, your money will still go farther than in other places; and your general health, wellbeing and happiness is likely to improve.
Recent interest in properties on Samui has been surprisingly high and real-estate purchases continue daily. It is a buyers’ market and those who need to sell understand this and are beginning to price properties realistically in order to get a sale.
People with available finances are recognising the potential to get a very good deal by buying now and, as the word spreads, more will seek to take advantage of the situation and make their investments now with confidence that values will grow and the market will prosper in the future.
Developers may decide to amend their marketing by targeting specific age groups and other nations least affected by the world economic crisis. Some will switch to Thai investors who have the funds and who are also keen to buy now and see the investment grow in the long-term.
Much has been said about the lack of loans and mortgages creating problems. However, on Samui there have been very few opportunities to get property financing anyway. In fact, the vast majority of purchases have always been with cash. So the process here won’t change; the lack of financing in other countries will however reduce the number of cash-rich buyers available.
Hard times will be ahead for some. Any reduction in tourist numbers and any slow-down in the property market will undoubtedly cause problems for some businesses and individuals. But on the whole Thailand, and specifically Samui, is in a stronger position than many other places. People continue to buy property here and visitors continue to arrive. So it seems that there are plenty of reasons to remain positive and to enjoy the benefits of living, visiting and owning property here.
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