Koh Samui Property Market Trends: What to Expect in 2024

March 18, 2024

Koh Samui is an island paradise in its own right that many people find enchanting. This is why many wish to get their own luxurious beachfront villa or modern condominium there.

However, is it worth investing in Koh Samui real estate in 2024? Isn't the cost of properties on the island rising? Isn't it better to invest in Chaweng or Lamai within Koh Samui?

What about the hidden fees when buying property there? Also, which locations on the island offer rental yields higher than 7 percent?

We can solve part of this puzzle by talking about current and future 2024 property marketing trends in Koh Samui. It should assist investors in figuring out what they can get out of the island.

The State of the Nation of Thailand and Koh Samui's Property Market

Are you considering buying property in Koh Samui in 2024? Obviously, you're not alone. Thailand's Coconut Island has been popping off since 2023 or even before that.

Everybody has a different opinion when measuring the strengths of the Koh Samui property market.

As far as we at Conrad Properties are concerned, we only rely on empirical evidence to make sure would-be investors like you get the most accurate analysis on Koh Samui property trends possible.

• Current Economic Stability: So far in the first quarter of 2024, Thailand is shaping up to be a stable country economy-wise. According to the Fragile State Index, Thailand has a rating of 70. Remember this when thinking about buying Koh Samui property.

• The Road to Recovery: The average GDP per capita of Thailand over the last five years has dropped to 0.9 percent due to COVID-19 pandemic issues at the start of 2020. The country's GDP has been recovering ever since.

• Projected Growth: Over the next five years, the GDP of Thailand (including Koh Samui) is projected to rise by 15.1 percent, which should then translate into an average GDP growth rate of 3 percent, according to the IMF's GDP forecasts.

These are highly beneficial statistics if you wish to invest in Koh Samui property. It's because economic growth also translates to more developments and income increases.

As incomes increase, workers become more motivated to purchase properties. The Koh Samui property you buy today could grow into a huge asset tomorrow as the market's demand and prices rise.

Koh Samui Property Prices in 2024

According to the most recent data of the Bank of Thailand, the average cost of any given Koh Samui property is around $4,500 per square meter.

Obviously, there are a few noteworthy exceptions to this "rule". In Koh Samui, a luxury villa may cost more per square meter than an ordinary bungalow. Beachside or seaside views will also cost you a pretty penny.

In Koh Samui, the most expensive neighborhoods are probably Chaweng, Choeng Mon, and Bophut, while the least expensive ones are probably found in the more rural areas on the island.

Nevertheless, the average cost of an apartment in Paris or London is enough to buy you three properties in Koh Samui, which is a huge bargain! In fact, Koh Samui housing prices are 21 percent cheaper than housing from Bangkok.

In any case, by going the Conrad Properties route with your Koh Samui property purchase, you can avail yourself of unrestricted access to our team of real estate experts. Feel free to ask them any questions about buying villas, condos, and beach houses in Koh Samui.

Types of Properties to Buy in Koh Samui

You can get your hands on many different kinds of real estate for sale in Koh Samui. We at Conrad Properties specifically offer beachfront villas, resorts, and condominiums galore.

To be more specific, you can get the following properties.

1. Peaceful residential land lots for building your ideal home.

2. Gorgeous beachfront villas with private access to the beach.

3. Relaxed hillside cottages with panoramic views of the island.

4. Modern-style condominiums in the busiest of neighborhoods.

5. Quaint commercial spaces for establishing your own business.

Koh Samui has a huge range of homes to fit your needs, whether you're looking for a quiet getaway or a busy center to conduct your entrepreneurial efforts with.

Are you looking for even more recent information about Koh Samui market trends? We've conducted a detailed review below to determine whether buying real estate in Thailand is right for you and your needs as an investor or would-be resident.

What's the Current State of Demand for Property in Koh Samui?

The current strong demand for residential property in Koh Samui in the first quarter of 2024 is largely due to the island's appeal as a tourist destination and a preferred location for foreigners.

• Main Factors of Influence: Despite its appeal, the Koh Samui property market is influenced by a number of factors such as the state of the Thai economy, governmental regulations, and the dynamics of the island's development.

• Strong Demand in 2024: From late 2023 to early 2024, there's been a strong demand for affordable island properties, especially for specific kinds of real estate. However, the ratio of sellers to buyers fluctuates. There's an effort to meet this demand with new home construction.

• High-End Residential Properties: Both domestic and foreign buyers have high demand for high-end residential properties like luxury villas and condos. As a result, developers are now more focused on building such properties.

  Such Koh Samui homes usually meet the needs of the average buyer by providing him with benefits such as easy accessibility to island attractions, gorgeous scenery, and modern conveniences.

• Beachfront Homes Are Popular: Many buyers specifically search for Koh Samui properties that combine accessibility to the island, seclusion from civilization, and comfort. Therefore, expect plenty of condos with ocean views, villas with private pools, and beachfront homes galore.

• Purchasing Power of Thai Consumers: The purchasing power of Thai consumers influences property prices. In turn, it can also be impacted by mortgage interest rates. Historically, Thailand has offered lower interest rates than those from some Western nations.

  Lower interest rates typically boost the buying power and encourage demand in the property market exactly because they make mortgages more affordable.

• The Plight of Foreign Property Buyers: Buyers, particularly overseas buyers, must deal with the challenges of financing in a nation outside of their homeland, which may involve unfamiliarity, limitations, and extra conditions.

• The Eco-Friendly Real Estate Trend: There's a growing demand for sustainable and eco-friendly real estate in Thailand, which indicates a bigger global trend towards environmental awareness.

  Environmentally conscious buyers—both domestic and foreign—are showing a growing interest in these properties. You should do it if you wish to do your part in conserving the planet.

• The Importance of Zoning Regulations: Zoning regulations are also very important because they set restrictions on what can be built in Koh Samui and where. This directly affects the quantity and quality of available housing.

• The Impact of Law Changes on the Property Market: The local property market may be greatly influenced by recent changes to laws or regulations like the Condominium Act of 2008 and some such.

  Investment decisions may also be affected by changes to local tax laws, including those linked to real estate purchases and sales as well as property taxes. Watch out for them.

• Subsidies Can Boost Demand: If available, homebuyer subsidies could probably boost demand of Koh Samui property by lowering the barrier to real estate ownership.

  To boost lower-income homeownership in 2024, the Thailand government decided to offer low-interest loans (at 3 percent) and a 100,000-baht payment subsidy for low-income and first-time buyers.

It's critical for prospective Koh Samui investors and buyers to remain knowledgeable about the above-mentioned aspects of the current market.

The Foreign Investment Policies of 2024

The Kingdom of Thailand has released property laws to encourage foreign property investment but in ways where they won’t go overboard and induce overdevelopment.

Thus, foreigners still can’t buy land outright. However, they can own condominiums (with caveats) and lease land (also with caveats).

Despite such limitations, these laws haven’t dampened the interest of overseas buyers in the property market of Koh Samui as well as Thailand. Rather, these strict yet clear laws provide a clearer framework for their investment.

Don’t worry. There are ways to bypass these strict laws to purchase property in the country, such as getting a 30-year leasehold and starting a Thai Limited Company owned by a majority of Thai shareholders.

Our experts will even guide you in every step of the way once you make up your mind and buy a property from our comprehensive online portfolio of available Koh Samui properties.

What is the Future Outlook for Koh Samui Property Trends?

As for the remainder of 2024, the Koh Samui real estate market conforms in accordance with the changes in the local population. Certain property types might increase in demand based on rising population demographics.

• The Aging Population of Koh Samui: Koh Samui is a retirement-focused tourism destination. Therefore, as more retirees become residents there, its demographics change, and its population is now overrun by more elderly people from both aging locals and overseas senior citizens.

  Due to the rise of the senior citizen demographic in Koh Samui, their demands for long-term residency will naturally result in a rise of buyers for residential properties.

  Single-story homes, easily maintainable properties, and houses near hospitals and community centers are particularly popular among the elderly population of Koh Samui.

• The Looming Trend of Urbanization: Koh Samui is indirectly affected by urbanization that borders on overdevelopment (which should be avoided). It's not as prominent as urbanization in Bangkok or the Thai mainland, but it's there.

  This has resulted in a rise in demand for investment properties and vacation rentals by job seekers who are now going to Koh Samui's urban centers for work.

• The Most Popular Urban Properties of Koh Samui: The urbanization trend mostly favors condominiums, luxury villas, and vacation homes. In particular, buyers favor condos they could rent out when they're not in use.

• The Smaller, Low-Maintenance Properties Trend: It's also important to take note of current household development trends. In particular, smaller, more manageable living spaces are in high demand, especially if you're a younger buyer or expatriate investor.

  Expect more people to buy more low-cost condominiums and low-maintenance small homes for the rest of 2024 and beyond. Their main appeal is convenience and how easily maintainable they are.

• The Investment Trends for Koh Samui Rentals: The main investment trend for Koh Samui rentals (more on this below) is their rise in demand in tandem with the island's growing popularity as a tourist destination.

  Buy high-rental potential properties today because they'll only rise in value in the future, and not just in 2024. Examples of such include properties close to popular tourist attractions, luxury apartments, and beachfront villas.

• The Future of Sustainability Trends: The cultural trend of environment-friendly and sustainable homes can also influence the demand for Koh Samui properties. More foreign investors are going green with their home purchases.

  Therefore, expect to see more natural ventilation, eco-friendly building materials, and homes equipped with solar panels in the future to meet this present planet-saving demand.

• Koh Samui Properties Will Still Attract Foreign Investment: The Koh Samui property market will continue to remain attractive to foreign investors for the foreseeable future, specifically overseas retirees and expatriates. Foreigners frequently buy real estate as investment or vacation properties.

• More Westernized Homes Are Being Developed: To suit the preferences of overseas buyers, more and more developers are building houses that are tailored to the tastes and needs of these westerners. This is why many Koh Samui villas are equipped with Western amenities and appliances.

• The Rise of Luxury Real Estate and Environment-Friendly Homes: Again, the niche markets of eco-friendly homes and luxury real estate are among the most promising upcoming trends for the rest of 2024.

  They're strong niches with existing consumer bases. To be more specific, the growth of these luxury markets is driven by rich overseas buyers and tourists with vested interests in sustainability.

To navigate through this market effectively, you need to thoroughly understand the potential drawbacks and the lucrative possibilities within it.

Is It Better to Rent or Buy in Koh Samui?

Whether you're currently a resident of Koh Samui or you're thinking about moving there, you're probably wondering whether you should rent or buy property in Coconut Island.

The answer to that depends on your needs. If you can afford to buy Koh Samui property, then do so. Or avail of a leasehold for the land and rent it out from 30 to 90 years if you're a foreigner.

A bought property has property value that can appreciate over time and can yield you either rental returns or home ownership as a Koh Samui resident.

With that said, it's okay to rent out property if that's all you can afford, you intend to live in the property, and you don't plan to lease it to others.

Investors like you should search for properties with consistent income streams and increasing asset value. Besides which, renting offers you the benefit of flexibility, especially if you can't afford to buy an entire villa or beach house.

What are the Trends in the Koh Samui Rental Market in 2024?

The demand for rental properties in Koh Samui is directly influenced by the island's status as a premier retirement and tourist destination among expats and retirees. You can see this factor also affects which properties are the most popular among buyers for rentals.

• Demand for Koh Samui Rentals is on the Rise: There's rising demand for Koh Samui rentals. It's because, as mentioned, tourists and foreign buyers prefer acquiring the island's luxury villas and beachfront apartments.

• The Rise of the Affordable Housing Options Trend: Aside from luxury options, there's also growing demand for more affordable housing options for local and overseas buyers wishing for permanent island residence. These include smaller apartments and single-family homes.

  In essence, transient tourists prefer luxury properties while long-term residents who've made the island their home favor bungalows instead.

• Sources of Privacy and Comfort for Tourists: Tourists tend to value privacy and comfort provided by small apartments and homes when compared to the traditional expensive hotel. These properties feature lucrative benefits like breathtaking views, private pools, and nearness to the beach.

• Favored Properties in Urban vs. Rural Areas: Different tenants in Koh Samui will naturally have different preferences based on their circumstances. For those in urban centers, they mostly demand apartments and condos near well-known tourist destinations and accessibility to fine dining options, retail, and entertainment.

In turn, tenants in rural or suburban areas may instead favor single-family homes that offer bigger living spaces and the overall peace of mind of living in a quiet neighborhood. They also love the emphasis on more natural surroundings.

At any rate, we go into greater detail on purchasing real estate in Koh Samui through our regularly updated archive of real estate blogs.

In Summary

As 2024 approaches its second half, the developing Koh Samui property market continues to offer investors, homeowners, and other industry players with multiple lucrative opportunities for financial growth.

If you're interested in getting amazing property deals in Koh Samui and beyond, look no further than Conrad Properties. We'll offer you as much assistance as you need for your next real estate investment.

The Conrad Properties website is a special goldmine of helpful information and expert investment advice in terms of the Koh Samui property market as well as real estate across Thailand and beyond.

Start your search today by going through Conrad Properties’ Koh Samui properties for sale in Thailand!