DESPITE some lingering doubts over the political situation in the country, the property sector on Koh Samui has been buzzing with activity as records indicate increased purchases.
Many foreign investors believe that the fact that the government has allowed the return of former Prime Minister Thaksin Shinawatra so he can face allegations of graft and corruption is an indication of political stability.
They are also confident that the island’s reputation as a top tourist destination makes it an attractive investment haven, noting that several development projects are geared to meeting demand for more tourism facilities.
Ubol Chart Group president Somchai Ubolchart said new investors from Singapore and Malaysia had indicated their willingness to allot as much Bt5 billion for the purchase of prime property.
Confidence in the property market has also been boosted by the government’s decision to relax the Foreign Business Act (FBA), property expert Pisarn Tangkasombat said.
He said the number of residential projects doubled in 2006 from the year before, although some developers suspended operations after the previous government tightened the FBA and announced stricter rules on land purchases and in the granting of construction licenses for residential projects.
Pisarn, who is also president of the Arayaburi Group, which owns five hotels and resorts on Koh Samui, said many local developers have initiated partnerships with foreign investors.
“We believe the property market, especially the residential segment, will stage a recovery this year, as the government has announced a clear policy regarding the FBA,” he said.
Research also indicates that the number of tourists heading to the island may rise once Thai Airways increases the number of flights on the Bangkok-Samui-Bangkok route to twice a day. The number of airport arrivals this year is expected to surpass two million.
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