Well at last caught up to date and I will try and maintain this as before on a monthly basis!
If you are a regular reader of this Newsletter you will have noted that each month I report on the change in asking prices as sellers respond to the correction in the market that has taken place over the last couple of years. We have over 600 properties on our web site in all categories and of these some 75 have reduced their asking prices and as a consequence some have sold. Since I started reporting on these changes we have seen prices fall by between 14% and 50% with an average of 25%. The immediate reaction by some people is that someone must be losing money – but that is not necessarily the case although inevitably there are some that do.
As finance is not available to foreign purchasers in Thailand, all purchases are in cash and with funds transferred from overseas. At the top of the market in 2005/2006, taking the Pound Sterling as an example, the exchange rate was around 70Baht to the GBP. Today it is 47Baht to the GBP which is a 33% change. So if you bought a Baht 10 million house in 2005 it would have cost you £143,000. You could sell that house at Baht 6,720,000 and get your money back. So whilst Baht prices have fallen, people have not necessarily lost money. There will always be exceptions and these tend to be where too much was paid in the first place and reductions greater that 33% are needed to get to present values.
Reduced asking prices are of course only part of the story as there is also considerably reduced demand and any prospective buyers in the market are well aware of their bargaining position. Basic economics tells us that value is determined by supply and demand. Supply here is created by an increasing number of people who wish to or need to sell. Demand is created by people who wish to and have the ability to buy. There are lots of the former and few of the latter.
The rainy season has well and truly arrived and we will now see just how well all the new drainage that has been put in place over the last year copes. Anyone following the Thai news will have seen that Bangkok and some of the northern provinces have been badly affected by flooding. So far Samui seems to have escaped, but a lot more rain is forecast so we must wait and see.
Monday 8 November 2010
Ko Samui Properties Newsletter - October 2010
What is happening in the Koh Samui property market? Well it has been so quiet for such a long time that any movement almost seems like an earthquake. Sales are happening albeit at low levels and only in respect of properties the owners of which have accepted the market correction that has occurred over the last two years. There are clearly people out there who are trying to talk the market up which in the end only makes them look foolish and the last thing I want to do is give the impression that all is fine. There are still a tremendous number of properties, both new and re-sales, available and it is going to take some considerable time for then to sell. Nevertheless it is encouraging to see sales taking place.
The infrastructure of Koh Samui has lagged behind development and there are constant complaints about water shortages and erratic electricity supply. The difficulty the Municipality faces in both regards is a combination of lack of funds and time. Major infrastructure items are costly and expensive. They need time to plan and obtain funding. Driving round the island you can see the new lengths of black water pipes being laid which according to officials will alleviate the current unpredictable water supply. Also in an article below there is news of the long planned extension to the electrical distribution system which will bring a supply to a new sub-station in Meanam. We have already seen some road improvements and the road by Bandon Hospital is in the process of being widened and re-laid. Slowly, slowly the island is getting what is required – not fast enough for many, but at least it is happening.
Driving back from Tong Krut on a regular basis I pass “The Garden of the Fool” Puppet and Art Shop. The owner, Barrabas, has a large number of puppets available and it is worth a visit just to see the craftsmanship. “The Garden of the Fool” can be found by turning left after Hua Thanon (coming from Chaweng) onto the lower ring road (4170) and it is about one kilometer on the right hand side.
Last month I promoted the Samui International Jazz Music Festival. This has just finished as was a great success. Look out for more of the same next year!
For the full version of the Newsletter please send an email to hbonning@kosamuiproperties.com
The infrastructure of Koh Samui has lagged behind development and there are constant complaints about water shortages and erratic electricity supply. The difficulty the Municipality faces in both regards is a combination of lack of funds and time. Major infrastructure items are costly and expensive. They need time to plan and obtain funding. Driving round the island you can see the new lengths of black water pipes being laid which according to officials will alleviate the current unpredictable water supply. Also in an article below there is news of the long planned extension to the electrical distribution system which will bring a supply to a new sub-station in Meanam. We have already seen some road improvements and the road by Bandon Hospital is in the process of being widened and re-laid. Slowly, slowly the island is getting what is required – not fast enough for many, but at least it is happening.
Driving back from Tong Krut on a regular basis I pass “The Garden of the Fool” Puppet and Art Shop. The owner, Barrabas, has a large number of puppets available and it is worth a visit just to see the craftsmanship. “The Garden of the Fool” can be found by turning left after Hua Thanon (coming from Chaweng) onto the lower ring road (4170) and it is about one kilometer on the right hand side.
Last month I promoted the Samui International Jazz Music Festival. This has just finished as was a great success. Look out for more of the same next year!
For the full version of the Newsletter please send an email to hbonning@kosamuiproperties.com
Ko Samui Properties Newsletter - September 2010
When sending funds to Thailand I have always found it better to convert to Thai Baht here. For large sums of money it can make a big difference but even on relatively small sums every penny saved is worth it. Just recently I received a transfer for a rental payment. The Baht amount required was 72,000. The client had his bank in the UK convert to Baht and gave him a rate of 49.7916 which cost GBP 1,446.02. If he had transferred GBP the cost would have been GBP 1,419.98 as the rate here was 50.705 a saving of GBP 26.04. Now you say, how do I know how much to send? Every bank here has a web site and on that site it shows currency exchange rates. We use Bangkok Bank and you can find their currency rates at http://www.bangkokbank.com/bangkok%20bank/web%20services/rates/pages/fx_rates.aspx
Look at the Buying Rates TT Column and you will see the rate in real time for whichever currency you are sending. Obviously you need to allow for charges – inward transfers to Bangkok Bank are usually Baht 200 but can be higher for larger amounts – but you will get those anyway. Rates change from day to day and my experience is that transfers from the UK sent standard rate take 2-3 days although they will always quote 3-5 days. In the nine years I have been here and receiving client’s funds, I have never known anyone get a better rate offshore.
Everyone has different ideas about street food. Some love it some hate it. Many people regard it as unhygienic but I have to say in the ten years I have been in Thailand, so far (touch wood) I have never had a problem and have sampled the delights in Bangkok and many places in between and of course here in Samui. One place I call at regularly is in Hua Thanon, usually mid afternoon on my way back to the office following a site visit.
Every week day afternoon between 3pm and 6pm, Em sets up her stall and makes these delicious sweets. Made from a combination of rice flour and sugar, topped with coconut milk they are cooked fresh in a baking tray. Five for ten Baht served in a banana leaf basket, you must let them cool down a little before eating as they are really hot! You can find Em as you enter Hua Thanon from the direction of Nathon, on the left hand side. Look for the cardboard cut out boy with the red shirt!
Look at the Buying Rates TT Column and you will see the rate in real time for whichever currency you are sending. Obviously you need to allow for charges – inward transfers to Bangkok Bank are usually Baht 200 but can be higher for larger amounts – but you will get those anyway. Rates change from day to day and my experience is that transfers from the UK sent standard rate take 2-3 days although they will always quote 3-5 days. In the nine years I have been here and receiving client’s funds, I have never known anyone get a better rate offshore.
Everyone has different ideas about street food. Some love it some hate it. Many people regard it as unhygienic but I have to say in the ten years I have been in Thailand, so far (touch wood) I have never had a problem and have sampled the delights in Bangkok and many places in between and of course here in Samui. One place I call at regularly is in Hua Thanon, usually mid afternoon on my way back to the office following a site visit.
Every week day afternoon between 3pm and 6pm, Em sets up her stall and makes these delicious sweets. Made from a combination of rice flour and sugar, topped with coconut milk they are cooked fresh in a baking tray. Five for ten Baht served in a banana leaf basket, you must let them cool down a little before eating as they are really hot! You can find Em as you enter Hua Thanon from the direction of Nathon, on the left hand side. Look for the cardboard cut out boy with the red shirt!
Koh Samui Newsletter - August 2010
When writing about Koh Samui it would be easy to extract just the negative and many people do only seem to see the down side. I have always tried to keep a balance in reporting both the good and the bad. There is no point in hiding the blemishes but there is also every reason to promote the highlights. I read many articles published on the internet about Samui, many are bland repetitions of much that has gone before but a couple recently caught my eye as being totally absurd. I will not reprint them here but you can follow this link to one which is dated July 2010 but must have been written by someone who has never been here. http://www.ihrthailand.net/samui-thailand/property-trends-in-koh-samui . Let me look at some of the statements.
“demand is already greater than supply when it comes to the residential market, and shortfalls are already being felt in some sectors” .
Just look at our web site and you will see there is no shortage of supply in any sector.
“There is currently no real secondary property market on Samui as most of the properties are brand new.”
Where on earth does that statement come from?
“without any stock to fall back on, agents are literally having to tell people to wait for more houses to arrive”
What!
“Despite rapid residential growth, some raw land is still available on Samui,”
Unbelievable! How much do you want?
One of the glossy real estate magazines, which is also published on line, recently carried an article by a local real estate agent which discussed buying land in this area. The information given was simply wrong. Unfortunately many people will read this nonsense and believe it. I have no problem with being positive, but anything that is published must reflect reality.
House addresses in Thailand do not seem to have any logic. Take our office address – 52/5 Moo 3, Bophut. The best you can elicit from that is that we are in Chaweng - Moo 3. 52/5 has no relevance to location. Even the Post Office needs a location map for a new address! However, even having the correct address does not always help as I found out in my very early days in the UK doing Building Society valuations. Victorian terraced houses, of which there are hundreds if not thousands in Leicester, look very much alike. One road looks very much like another. So with the confidence of youth I knocked on the door and was greeted by a very charming Indian gentleman to whom I introduced myself as The Surveyor, and he had obviously been expecting me. So tape and damp meter in hand I proceeded to prod and poke, jump up and down on floor boards (an old and tested method of identifying wet and dry rot in floor joists) and generally give the place a good going over. When I got to the Kitchen at the rear of the house he had laid out a set of plans which he proudly showed me of the new bathroom extension he was going to build. It was at this point that the first seeds of doubt were sown. Why would he build a bathroom if he was selling the house? Did I think he would get the grant, he asked me? Time to take a closer look at the plans – and more specifically the address on the plans! Right house number – wrong road! I assured him that I thought everything would be OK and beat a hasty retreat to find the right house. I do hope he got the grant!
Building Society valuations were really just that. They were never intended as structural surveys and the main purpose was to ascertain that there was sufficient value in the property for the intended loan. Obviously condition comes into this and the main things we looked for were wet and dry rot, rising damp, wood worm, ancient electrics and plumbing and of course glaring structural defects, generally evidenced by cracks in the walls. The skill was in deciding if the crack was a result of natural settlement, shrinkage or something more serious which required further investigation. Here in Koh Samui the vast majority of residential buildings are based on reinforced concrete columns and beams which form the main structure and everything else is just infill. Cracks in the infill are not structural and usually the consequence of shrinkage as the mortar in the wall and the plaster rendering dry out. This is a particular problem in hot weather when evaporation occurs too quickly but is in no way serious and is soon taken care of with decoration. That is of course something of a sweeping statement as there can be occasions when the vertical alignment of the infill can be out of line but this is unusual. Nevertheless we have had instances here where so called “experts” have advised against purchasing a property due to serious structural defects which when I looked at them, turned out to be no more than a single hairline crack in some concrete block infill which did not even reach the concrete frame.
Old buildings, and I mean very old buildings, always presented a problem. Technically many of them should not have been standing but when you are talking about a timber frame cottage that has been there for the last 300 or more years how do you justify stating the building is unsound! It has evidence of wood worm and Death Watch Beetle although it is clear the infestation is old and no longer active, but what hidden damage was caused when it was? Yet this old house is a solid as a rock. Modern buildings are not built to last hundreds of years and due to advances in technology and changing social requirements many are out of date within 20 – 30 years – more so perhaps with commercial and industrial buildings than residential, but I doubt we will see many of the houses we have around us today in a couple of hundred years time. Yet I bet that old timber frame, wattle and daub cottage will still be there and there will be another Surveyor standing there scratching his head and wondering how?
“demand is already greater than supply when it comes to the residential market, and shortfalls are already being felt in some sectors” .
Just look at our web site and you will see there is no shortage of supply in any sector.
“There is currently no real secondary property market on Samui as most of the properties are brand new.”
Where on earth does that statement come from?
“without any stock to fall back on, agents are literally having to tell people to wait for more houses to arrive”
What!
“Despite rapid residential growth, some raw land is still available on Samui,”
Unbelievable! How much do you want?
One of the glossy real estate magazines, which is also published on line, recently carried an article by a local real estate agent which discussed buying land in this area. The information given was simply wrong. Unfortunately many people will read this nonsense and believe it. I have no problem with being positive, but anything that is published must reflect reality.
House addresses in Thailand do not seem to have any logic. Take our office address – 52/5 Moo 3, Bophut. The best you can elicit from that is that we are in Chaweng - Moo 3. 52/5 has no relevance to location. Even the Post Office needs a location map for a new address! However, even having the correct address does not always help as I found out in my very early days in the UK doing Building Society valuations. Victorian terraced houses, of which there are hundreds if not thousands in Leicester, look very much alike. One road looks very much like another. So with the confidence of youth I knocked on the door and was greeted by a very charming Indian gentleman to whom I introduced myself as The Surveyor, and he had obviously been expecting me. So tape and damp meter in hand I proceeded to prod and poke, jump up and down on floor boards (an old and tested method of identifying wet and dry rot in floor joists) and generally give the place a good going over. When I got to the Kitchen at the rear of the house he had laid out a set of plans which he proudly showed me of the new bathroom extension he was going to build. It was at this point that the first seeds of doubt were sown. Why would he build a bathroom if he was selling the house? Did I think he would get the grant, he asked me? Time to take a closer look at the plans – and more specifically the address on the plans! Right house number – wrong road! I assured him that I thought everything would be OK and beat a hasty retreat to find the right house. I do hope he got the grant!
Building Society valuations were really just that. They were never intended as structural surveys and the main purpose was to ascertain that there was sufficient value in the property for the intended loan. Obviously condition comes into this and the main things we looked for were wet and dry rot, rising damp, wood worm, ancient electrics and plumbing and of course glaring structural defects, generally evidenced by cracks in the walls. The skill was in deciding if the crack was a result of natural settlement, shrinkage or something more serious which required further investigation. Here in Koh Samui the vast majority of residential buildings are based on reinforced concrete columns and beams which form the main structure and everything else is just infill. Cracks in the infill are not structural and usually the consequence of shrinkage as the mortar in the wall and the plaster rendering dry out. This is a particular problem in hot weather when evaporation occurs too quickly but is in no way serious and is soon taken care of with decoration. That is of course something of a sweeping statement as there can be occasions when the vertical alignment of the infill can be out of line but this is unusual. Nevertheless we have had instances here where so called “experts” have advised against purchasing a property due to serious structural defects which when I looked at them, turned out to be no more than a single hairline crack in some concrete block infill which did not even reach the concrete frame.
Old buildings, and I mean very old buildings, always presented a problem. Technically many of them should not have been standing but when you are talking about a timber frame cottage that has been there for the last 300 or more years how do you justify stating the building is unsound! It has evidence of wood worm and Death Watch Beetle although it is clear the infestation is old and no longer active, but what hidden damage was caused when it was? Yet this old house is a solid as a rock. Modern buildings are not built to last hundreds of years and due to advances in technology and changing social requirements many are out of date within 20 – 30 years – more so perhaps with commercial and industrial buildings than residential, but I doubt we will see many of the houses we have around us today in a couple of hundred years time. Yet I bet that old timber frame, wattle and daub cottage will still be there and there will be another Surveyor standing there scratching his head and wondering how?
Ko Samui Properties Newsletter - July 2010
Better late than never!
The question I am continually asked is “How is the market and what is going on?” and sometimes that can be a difficult one to answer. There is no real consistency. The market is not dead but then it is not bubbling with life either. We continue to receive enquiries from interested buyers but their expectations have changed. I have been beating the drum over recent months in this Newsletter about how prices have fallen to the extent that most people are bored with it, but it is a fact that must be accepted if anyone wants to sell in this market. Buyers in particular are very aware of this fact and only looking at what can now be considered as “good value”. And that is an interesting point. In order to sell within a short period of time over the last few months, it has really been about “what is the lowest figure you can afford to accept” rather than “what is the value of my property”. There does now seem to be at least a plateau at which “values” have stabilized which suggests we may be at the bottom with regard to the change in prices. However, please note “maybe”. How long that will last and which way it will go is of course the million dollar question. The two factors relevant to that are of course the political situation in Thailand and the world economic situation.
Whilst on the surface all seems quiet here I do not think we have heard the last of the red shirt protestors but what form their next action will take is unclear. How the Prime Minister handles the situation over the next few months and if Thailand can get to the next General Election without further damaging demonstrations and violence remains open to question. This uncertainty alone I believe will delay any recovery in the real estate market even if by some miracle the international economy sorts itself out.
The last weekend in June brought another speedboat accident carrying people to the Full Moon Party on Koh Phangan. At the time of writing there were no fatalities reported although about 40 people were injured, some quite seriously. It was a very stormy night, but as is often the case here, rain and storms can be very localized and it would seem this particular squall came through quite quickly. As usual there are conflicting reports as to what happened but even in good weather the seas between the islands, once you get clear of the headland, can get very rough. I have a fairly good back ground in sailing over the last forty or so years, and I have sailed down the east coast of Koh Phangan at dusk and into Big Buddha Bay as it became dark and there is clearly a need for better navigation lights in that area, particularly with buoys – of course of which there are none. Local knowledge is one thing, but in the dark, with rain and heavy seas, anyone can become disorientated. It would also appear that whilst the Marine Police had things under control at the Samui end, there was no one overseeing the Koh Phangan end and who could perhaps have prevented the boat leaving until the squall had passed. Health and Safety in Thailand is sadly lacking in every aspect of life. I see it every day on the roads and there is not a construction site in Thailand that would not be closed down by a UK Factory Inspector before he had even walked on site. I know from personal experience that trying to police these issues here is virtually impossible. We have managed to get construction staff to wear safety helmets but safety footwear – forget it. Equally we do not want the extremes of ‘elfinsafety prevalent in the UK in particular where jobsworth H&E Inspectors tell people they cannot climb a ladder to change a light bulb without a risk assessment analysis. There are many more ludicrous examples but some where there needs to be a reasonable compromise. I suspect that may be found in Thailand way before the UK. Or perhaps not.
For a full copy of this Newsletter please send an email to hbonning@kosamuiproperties.com
The question I am continually asked is “How is the market and what is going on?” and sometimes that can be a difficult one to answer. There is no real consistency. The market is not dead but then it is not bubbling with life either. We continue to receive enquiries from interested buyers but their expectations have changed. I have been beating the drum over recent months in this Newsletter about how prices have fallen to the extent that most people are bored with it, but it is a fact that must be accepted if anyone wants to sell in this market. Buyers in particular are very aware of this fact and only looking at what can now be considered as “good value”. And that is an interesting point. In order to sell within a short period of time over the last few months, it has really been about “what is the lowest figure you can afford to accept” rather than “what is the value of my property”. There does now seem to be at least a plateau at which “values” have stabilized which suggests we may be at the bottom with regard to the change in prices. However, please note “maybe”. How long that will last and which way it will go is of course the million dollar question. The two factors relevant to that are of course the political situation in Thailand and the world economic situation.
Whilst on the surface all seems quiet here I do not think we have heard the last of the red shirt protestors but what form their next action will take is unclear. How the Prime Minister handles the situation over the next few months and if Thailand can get to the next General Election without further damaging demonstrations and violence remains open to question. This uncertainty alone I believe will delay any recovery in the real estate market even if by some miracle the international economy sorts itself out.
The last weekend in June brought another speedboat accident carrying people to the Full Moon Party on Koh Phangan. At the time of writing there were no fatalities reported although about 40 people were injured, some quite seriously. It was a very stormy night, but as is often the case here, rain and storms can be very localized and it would seem this particular squall came through quite quickly. As usual there are conflicting reports as to what happened but even in good weather the seas between the islands, once you get clear of the headland, can get very rough. I have a fairly good back ground in sailing over the last forty or so years, and I have sailed down the east coast of Koh Phangan at dusk and into Big Buddha Bay as it became dark and there is clearly a need for better navigation lights in that area, particularly with buoys – of course of which there are none. Local knowledge is one thing, but in the dark, with rain and heavy seas, anyone can become disorientated. It would also appear that whilst the Marine Police had things under control at the Samui end, there was no one overseeing the Koh Phangan end and who could perhaps have prevented the boat leaving until the squall had passed. Health and Safety in Thailand is sadly lacking in every aspect of life. I see it every day on the roads and there is not a construction site in Thailand that would not be closed down by a UK Factory Inspector before he had even walked on site. I know from personal experience that trying to police these issues here is virtually impossible. We have managed to get construction staff to wear safety helmets but safety footwear – forget it. Equally we do not want the extremes of ‘elfinsafety prevalent in the UK in particular where jobsworth H&E Inspectors tell people they cannot climb a ladder to change a light bulb without a risk assessment analysis. There are many more ludicrous examples but some where there needs to be a reasonable compromise. I suspect that may be found in Thailand way before the UK. Or perhaps not.
For a full copy of this Newsletter please send an email to hbonning@kosamuiproperties.com
Tuesday 1 June 2010
Ko Samui Properties Blog for June 2010
Of course the big issue recently has been the unrest in Bangkok. I have been asked by several people if there was any problem on Koh Samui and the simple answer is NO. People in Samui just want to get on with their lives and businesses and to some extent we have the north/south divide in that the red shirts are mostly from the NE Issan region. Whilst there are many Issan people working here in the tourist and construction industries, they are simply happy to get on with their jobs and send money back to the family at home. I see tourists on the street every day enjoying themselves and we pass at least half a dozen “jungle safari” jeeps each morning as we drive to work. Tourism is undoubtedly down even for low season, but there are still many people here enjoying the sun and the beaches.
Over the years I have carried out many valuations for a range of different purposes in different countries. During my time in Germany before the Wall came down I was asked to value an hotel in the hills above the Rhine Valley just outside Bonn. I was met by a very charming elderly German gentleman who proceeded to show me round the property and also the outlying buildings which were offices, the walls of which were plastered with illustrations of every sort of gun and armament you could think of. It turned out he was a second hand arms dealer and had been an officer in the Waffen SS during the Second World War and fought on the Russian front where he built, so he told me, railway platforms out of solid ice for the disembarkation of men and supplies. Sitting in his office at the end of the tour he handed me a large bag of pistachio nuts. The day before the Iranian Defence Minister had been sitting in the same chair and these were fresh from Iran but I was welcome to them as he could not eat nuts. And very tasty they were too.
On another occasion, also in Bonn, I was carrying out a portfolio valuation for a large British owned German Insurance company. I pulled off the road to check my map and then drove on. A week later I had a call from the Bundessicherheitsdients – the Federal Security Agency – asking if I had been in Bonn the previous week and specifically if I had been there on the Wednesday. I was actually there on the Thursday which I admitted – trying to catch me out no doubt! It turned out that when I stopped to consult my map, I had done so outside a property which for some reason was of a sensitive nature and under surveillance. I had to explain why I was there, what I was doing, why did I stop. Eventually they were satisfied and I heard nothing more.
Whilst the RICS is not recognised in Thailand I do get called upon from time to time to carry out official valuation work which is accepted by the UK Courts, sadly usually in divorce cases, but also for private issues between business partners. In the present market this becomes something of a challenge as the most reliable basis of valuation for residential properties is by comparison of like sales. When there are few sales to make that comparison it becomes a matter of judgement and analysis of market trends. The usual criterion is that the valuation should be fair between the parties and in arriving at a figure, valuation practice requires us to value at a specific date. This is an essential point as you can imagine the difficulty a valuer would have been in if he valued the World Trade Centre Buildings on 1st September but did not stipulate a date! It is also necessary to assume a reasonable marketing period which in the present market could be many months. There is no specific definition of a “forced sale” valuation but it is generally agreed that this would be accepted as an Open Market Valuation restricted by the marketing period available. I take as an example a case where a property were to be offered at auction in say four weeks time with no reserve price. I am sure you will appreciate that a property offered in this way will attract a sale price well below that which would be achieved following more extensive marketing and subject to the usual condition of “willing buyer and willing seller”. However, it is still an Open Market Value but subject to severe restrictions.
Over the years I have carried out many valuations for a range of different purposes in different countries. During my time in Germany before the Wall came down I was asked to value an hotel in the hills above the Rhine Valley just outside Bonn. I was met by a very charming elderly German gentleman who proceeded to show me round the property and also the outlying buildings which were offices, the walls of which were plastered with illustrations of every sort of gun and armament you could think of. It turned out he was a second hand arms dealer and had been an officer in the Waffen SS during the Second World War and fought on the Russian front where he built, so he told me, railway platforms out of solid ice for the disembarkation of men and supplies. Sitting in his office at the end of the tour he handed me a large bag of pistachio nuts. The day before the Iranian Defence Minister had been sitting in the same chair and these were fresh from Iran but I was welcome to them as he could not eat nuts. And very tasty they were too.
On another occasion, also in Bonn, I was carrying out a portfolio valuation for a large British owned German Insurance company. I pulled off the road to check my map and then drove on. A week later I had a call from the Bundessicherheitsdients – the Federal Security Agency – asking if I had been in Bonn the previous week and specifically if I had been there on the Wednesday. I was actually there on the Thursday which I admitted – trying to catch me out no doubt! It turned out that when I stopped to consult my map, I had done so outside a property which for some reason was of a sensitive nature and under surveillance. I had to explain why I was there, what I was doing, why did I stop. Eventually they were satisfied and I heard nothing more.
Whilst the RICS is not recognised in Thailand I do get called upon from time to time to carry out official valuation work which is accepted by the UK Courts, sadly usually in divorce cases, but also for private issues between business partners. In the present market this becomes something of a challenge as the most reliable basis of valuation for residential properties is by comparison of like sales. When there are few sales to make that comparison it becomes a matter of judgement and analysis of market trends. The usual criterion is that the valuation should be fair between the parties and in arriving at a figure, valuation practice requires us to value at a specific date. This is an essential point as you can imagine the difficulty a valuer would have been in if he valued the World Trade Centre Buildings on 1st September but did not stipulate a date! It is also necessary to assume a reasonable marketing period which in the present market could be many months. There is no specific definition of a “forced sale” valuation but it is generally agreed that this would be accepted as an Open Market Valuation restricted by the marketing period available. I take as an example a case where a property were to be offered at auction in say four weeks time with no reserve price. I am sure you will appreciate that a property offered in this way will attract a sale price well below that which would be achieved following more extensive marketing and subject to the usual condition of “willing buyer and willing seller”. However, it is still an Open Market Value but subject to severe restrictions.
Ko Samui Properties Blog for May 2010
(Somewhat late but better that than not at all!)
Of course the big issue currently is the continuing unrest in Bangkok. I have been asked by several people if there is any problem on Koh Samui and the simple answer is NO. People in Samui just want to get on with their lives and businesses and to some extent we have the north/south divide in that the red shirts are mostly from the NE Issan region. Whilst there are many Issan people working here in the tourist and construction industries, they are simply happy to get on with their jobs and send money back to the family at home. I see tourists on the street every day enjoying themselves and we pass at least half a dozen “jungle safari” jeeps each morning as we drive to work. Tourism is undoubtedly down even for low season, but there are still many people here enjoying the sun and the beaches.
Distressed Real Estate is a term you often hear these days and essentially refers to property that cannot produce sufficient income to meet its running costs. No different to a business really. I have seen a number on Koh Samui and the usual reason is that the rent, which was reasonable when the lease was first signed, has increased automatically by a fixed percentage over a number of years and is no longer realistic in current market conditions. This is particularly true of long leases where the rent increase every five years traditionally by 5%. You might say that a 1% annual increase is not excessive but the increase is compound so works out more than that. However the real problem is that the automatic increases have no regard for actual market conditions and over a period of time there can be a significant discrepancy. This situation is most often seen in long term registered leases – any lease in excess of three years has to be registered to be enforceable and long leases cannot exceed 30 years. The European concept of “review to market rent” after say five years is unheard of here in Samui and indeed with the lack of transparency in transactions it would be difficult to find realistic comparable evidence. Add to that the nonsense of key-money and analysis becomes difficult if not impossible. A long lease in theory gives a tenant sufficient time to build the business and recoup the investment, make a good living and possibly even sell the business at a profit. The short term leases, under three years, make this much more difficult due to the restricted term. Many have options to renew for a further period of three years maybe more than once and provided the same parties (lessee and lessor) are still the same, it is usually not a problem. However, this obviously gives both sides the opportunity to review the rent to one that is in line with the market and acceptable to both sides. There is no easy answer to this but anyone entering in to a lease, be it long term or short, needs to think carefully how future rental increases will be implemented and how that will affect their business.
Living on a tropical island has many advantages. Take something simple like having a haircut in the open air. Near to where I live there is a very small mini-mart run by a local family. The son takes care of the shop but the father, who is essentially retired has installed a chair at the side under the projecting roof, fixed a mirror to the wall and runs a side line cutting hair. You sit back surrounded by banana trees and watch life go by in the mirror as a couple of kids play in a pile of builders sand on the opposite side of the road. Cars and bikes are buzzing by a few feet away and people say hello as they wander past. No air conditioning of course as you are out in the open, just a gentle breeze to blow away the silver hairs as they are cut free! But you know one of the best things about this is that there is no rear wall where many hairdressers fix an angled mirror so you can see the back of your head. I do not need reminding that the hair there is getting thinner all the time!
I was sad to report last month the loss of Big Joe and his funeral and wake took place on 3rd April at the Wat in Bophut. It was not surprising with Joe’s popularity that there was a huge turn out both at the Wat and at the Wake at the Bungee Jump later in the afternoon. Triple figures would not be an exaggeration. Joe of course had the last laugh. He was not called Big Joe for nothing. Thai crematoria are simply not designed for people of Joe’s girth.
Of course the big issue currently is the continuing unrest in Bangkok. I have been asked by several people if there is any problem on Koh Samui and the simple answer is NO. People in Samui just want to get on with their lives and businesses and to some extent we have the north/south divide in that the red shirts are mostly from the NE Issan region. Whilst there are many Issan people working here in the tourist and construction industries, they are simply happy to get on with their jobs and send money back to the family at home. I see tourists on the street every day enjoying themselves and we pass at least half a dozen “jungle safari” jeeps each morning as we drive to work. Tourism is undoubtedly down even for low season, but there are still many people here enjoying the sun and the beaches.
Distressed Real Estate is a term you often hear these days and essentially refers to property that cannot produce sufficient income to meet its running costs. No different to a business really. I have seen a number on Koh Samui and the usual reason is that the rent, which was reasonable when the lease was first signed, has increased automatically by a fixed percentage over a number of years and is no longer realistic in current market conditions. This is particularly true of long leases where the rent increase every five years traditionally by 5%. You might say that a 1% annual increase is not excessive but the increase is compound so works out more than that. However the real problem is that the automatic increases have no regard for actual market conditions and over a period of time there can be a significant discrepancy. This situation is most often seen in long term registered leases – any lease in excess of three years has to be registered to be enforceable and long leases cannot exceed 30 years. The European concept of “review to market rent” after say five years is unheard of here in Samui and indeed with the lack of transparency in transactions it would be difficult to find realistic comparable evidence. Add to that the nonsense of key-money and analysis becomes difficult if not impossible. A long lease in theory gives a tenant sufficient time to build the business and recoup the investment, make a good living and possibly even sell the business at a profit. The short term leases, under three years, make this much more difficult due to the restricted term. Many have options to renew for a further period of three years maybe more than once and provided the same parties (lessee and lessor) are still the same, it is usually not a problem. However, this obviously gives both sides the opportunity to review the rent to one that is in line with the market and acceptable to both sides. There is no easy answer to this but anyone entering in to a lease, be it long term or short, needs to think carefully how future rental increases will be implemented and how that will affect their business.
Living on a tropical island has many advantages. Take something simple like having a haircut in the open air. Near to where I live there is a very small mini-mart run by a local family. The son takes care of the shop but the father, who is essentially retired has installed a chair at the side under the projecting roof, fixed a mirror to the wall and runs a side line cutting hair. You sit back surrounded by banana trees and watch life go by in the mirror as a couple of kids play in a pile of builders sand on the opposite side of the road. Cars and bikes are buzzing by a few feet away and people say hello as they wander past. No air conditioning of course as you are out in the open, just a gentle breeze to blow away the silver hairs as they are cut free! But you know one of the best things about this is that there is no rear wall where many hairdressers fix an angled mirror so you can see the back of your head. I do not need reminding that the hair there is getting thinner all the time!
I was sad to report last month the loss of Big Joe and his funeral and wake took place on 3rd April at the Wat in Bophut. It was not surprising with Joe’s popularity that there was a huge turn out both at the Wat and at the Wake at the Bungee Jump later in the afternoon. Triple figures would not be an exaggeration. Joe of course had the last laugh. He was not called Big Joe for nothing. Thai crematoria are simply not designed for people of Joe’s girth.
Thursday 1 April 2010
Ko Samui Properties Monthly Newsletter No 67 April 2010
I don’t know why Uncle Bill came to mind last month – well I do as I explained then – but why just then? But it did start me thinking and remembering some of his other sayings in a deep Yorkshire accent. Driving home the other night as we came up towards Big Buddha there were ominous storm clouds building up. “It's a bit black ova Bills' Mothers” came to mind as one of his sayings portending rain and sure enough not long after we had some very heavy and much welcome rain. The authorities seem to think that we have about three months water supply on Koh Samui so are not at this stage too worried. Although the rain was very heavy and some areas began to flood, the new drainage systems put in last year seemed to work quite well and the water drained away pretty quickly.
The more I think about his sayings, the more appropriate many are to life on the island. “Tha’ can allus tell a Yorkshireman, but tha’ can’t tell ‘im much.” Well I have to say that applies to so many people who think they know it all. After some 35 years in real estate and eight here on Koh Samui, I have a reasonable grasp of the fundamentals but it still amazes me the number of people who after a few months have worked it all out and are fountains of knowledge and boast about the number of high ranking and powerful friends they have who have promised them help. If you do things by the book and within the law, you do not necessarily need such contacts. But, in any business contacts are important and on a small island like Samui there are long established local families who wield a lot of influence and many hold important posts in local government and businesses. Treated with courtesy and respect they can be useful allies but offend or embarrass them and life may become a little tedious.
I am probably the last person to criticise anyone for speaking incorrect English as my ability to speak Thai is virtually non-existent even after ten years in the country. So when my wife came running into the office shouting that “ a bee has bitten me”, apparently that was not the right time to suggest “stung” might be a better word!
For those of you with Google Earth you will be pleased to know that they have at last updated the images for Samui. Previously these were dated 2004 but the new ones are dated 2009. Unfortunately there are still large areas of cloud cover, mostly in areas such as Bophut and Choengmon that were clear in the previous images, but nevertheless this is a great step forward. However, Google Earth is a pretty impressive program and you can actually revert to the old images quite easily using the “time slider” which is the “clock” in the tool bar at the top. The have though not updated the whole of the west coast which still remains mostly blurred. If you do not have Google Earth, the basic version is free and you can download it here.
As reported in previous Newsletters, Social Marketing is the buzz word to day and whether we like it or not you have to play along to stay in the game. To this end Ko Samui Properties can be found on Face Book at_ http://tiny.cc/SSJEi Twitter at http://tiny.cc/4XaHA . Recently I was introduced to LinkedIn which I had always ignored before as just another directory which would take up my time to no effect. In fact it is proving to be a very interesting networking tool. This business is about contacting people and making them aware of what we do and of course this Newsletter is part of that strategy. The more people we connect with, directly or indirectly, the more people see our inventory and the more likely we are to make a sale. Within a few days of joining I had over 65 direct contacts, 2,200 secondary contacts and ultimately 220,000 contacts and building every day. Achieving and maintaining a high profile in this very competitive and currently difficult market is essential to our success and the success of our clients and making sure that anyone interested in buying property on Koh Samui finds us at the top of the list. If you wish to connect follow this link.
I am sad to report the passing of one of Koh Samui’s great characters. Big Joe was tragically killed in a car accident on his way back from Bangkok last Saturday. His pies and sausages were renowned as far a field as Pattaya and his kindness and generosity knew no bounds. I have known Joe since we first opened our office as his shop was then just a stones throw away but had not seen him so often since he moved to his new location on Old Monkey Theatre Road. He will be greatly missed. RIP Joe.
Asking prices for land have remained pretty static and, until now, not fallen in the same way as house prices. However in the last couple of months we have seen sellers start to drop their prices with reductions of between 20% and 27%.
More and more people are recognizing that there has been a significant market adjustment over the last 12-18 months. Each week we get instructions to reduce asking prices to levels more appropriate to the prevailing market conditions and you can find these on our web site at the Hot Press Offers . You will see a great number of properties with prices that have been reduced from between 17% and 33% with an average reduction this month of 21%. These reductions are producing sales and, although still not many, there are a few more buyers around than there were a few weeks ago.
See in particular the following properties – CTRL + click to follow the link:
3 Bedroom House in Bangrak – Baht 5,900,000
Now available at - Baht 4,900,000
2 and 3 Bedroom villas in Bangrak – Baht 7,900,000
Now available at - Baht 2,590,000 and Baht 3,690,000
2 Bedroom Bungalow in Bangrak - Baht 3,900,000 million
Now available at Baht 3,000,000
5 Bed house with pool in Maenam - Baht 12 million
Now available at Baht 8,000,000
4 Bed House with pool in Chaweng - Baht 45 million
New Price - Baht 31 million
For a full copy of the monthly Newsletter please email me at hbonning@kosamuiproperties.com
The more I think about his sayings, the more appropriate many are to life on the island. “Tha’ can allus tell a Yorkshireman, but tha’ can’t tell ‘im much.” Well I have to say that applies to so many people who think they know it all. After some 35 years in real estate and eight here on Koh Samui, I have a reasonable grasp of the fundamentals but it still amazes me the number of people who after a few months have worked it all out and are fountains of knowledge and boast about the number of high ranking and powerful friends they have who have promised them help. If you do things by the book and within the law, you do not necessarily need such contacts. But, in any business contacts are important and on a small island like Samui there are long established local families who wield a lot of influence and many hold important posts in local government and businesses. Treated with courtesy and respect they can be useful allies but offend or embarrass them and life may become a little tedious.
I am probably the last person to criticise anyone for speaking incorrect English as my ability to speak Thai is virtually non-existent even after ten years in the country. So when my wife came running into the office shouting that “ a bee has bitten me”, apparently that was not the right time to suggest “stung” might be a better word!
For those of you with Google Earth you will be pleased to know that they have at last updated the images for Samui. Previously these were dated 2004 but the new ones are dated 2009. Unfortunately there are still large areas of cloud cover, mostly in areas such as Bophut and Choengmon that were clear in the previous images, but nevertheless this is a great step forward. However, Google Earth is a pretty impressive program and you can actually revert to the old images quite easily using the “time slider” which is the “clock” in the tool bar at the top. The have though not updated the whole of the west coast which still remains mostly blurred. If you do not have Google Earth, the basic version is free and you can download it here.
As reported in previous Newsletters, Social Marketing is the buzz word to day and whether we like it or not you have to play along to stay in the game. To this end Ko Samui Properties can be found on Face Book at_ http://tiny.cc/SSJEi Twitter at http://tiny.cc/4XaHA . Recently I was introduced to LinkedIn which I had always ignored before as just another directory which would take up my time to no effect. In fact it is proving to be a very interesting networking tool. This business is about contacting people and making them aware of what we do and of course this Newsletter is part of that strategy. The more people we connect with, directly or indirectly, the more people see our inventory and the more likely we are to make a sale. Within a few days of joining I had over 65 direct contacts, 2,200 secondary contacts and ultimately 220,000 contacts and building every day. Achieving and maintaining a high profile in this very competitive and currently difficult market is essential to our success and the success of our clients and making sure that anyone interested in buying property on Koh Samui finds us at the top of the list. If you wish to connect follow this link.
I am sad to report the passing of one of Koh Samui’s great characters. Big Joe was tragically killed in a car accident on his way back from Bangkok last Saturday. His pies and sausages were renowned as far a field as Pattaya and his kindness and generosity knew no bounds. I have known Joe since we first opened our office as his shop was then just a stones throw away but had not seen him so often since he moved to his new location on Old Monkey Theatre Road. He will be greatly missed. RIP Joe.
Asking prices for land have remained pretty static and, until now, not fallen in the same way as house prices. However in the last couple of months we have seen sellers start to drop their prices with reductions of between 20% and 27%.
More and more people are recognizing that there has been a significant market adjustment over the last 12-18 months. Each week we get instructions to reduce asking prices to levels more appropriate to the prevailing market conditions and you can find these on our web site at the Hot Press Offers . You will see a great number of properties with prices that have been reduced from between 17% and 33% with an average reduction this month of 21%. These reductions are producing sales and, although still not many, there are a few more buyers around than there were a few weeks ago.
See in particular the following properties – CTRL + click to follow the link:
3 Bedroom House in Bangrak – Baht 5,900,000
Now available at - Baht 4,900,000
2 and 3 Bedroom villas in Bangrak – Baht 7,900,000
Now available at - Baht 2,590,000 and Baht 3,690,000
2 Bedroom Bungalow in Bangrak - Baht 3,900,000 million
Now available at Baht 3,000,000
5 Bed house with pool in Maenam - Baht 12 million
Now available at Baht 8,000,000
4 Bed House with pool in Chaweng - Baht 45 million
New Price - Baht 31 million
For a full copy of the monthly Newsletter please email me at hbonning@kosamuiproperties.com
Tuesday 2 March 2010
Koh Samui Properties Blog No 66 March 2010
Uncle Bill was a Yorkshire farmer of the old school and I spent many a happy school summer holiday on the farm, getting in the way and pretending to help where I could! He had a good herd of cows – or beasts – as he called them for milking twice a day, a large flock of sheep with lambing in the dark winter nights and which were then dipped and sheared in the Spring and whilst they brought in a harvester to cut the Barley or Wheat, he still used a huge scythe to keep the grass down. The hens were completely free range and collecting the eggs involved climbing into haystacks and under hedges. The geese however were not to be trifled with and as a six year old were pretty scary. No electricity in those days so we went to bed with candles and a “visit” was to the outside privy at the bottom of the garden with a torn up copy of the Yorkshire Post! Uncle Bill was the first person to introduce me to that well known phrase – “There’s nowt so queer as folk!”
The purpose behind that introduction is basically because it is a phrase that has popped into my head on more than one occasion over the last few months. Our principal marketing tool is our web site and the vast majority of enquiries we receive originate from there. It usually starts with a brief email asking for further details of a particular property and as we enter into a dialogue we begin to understand better what they are looking for. Having said that we never really understand – and neither do they – what they really want until we sit in the car with them and can tell by their reaction to a particular property what turns a customer on or off. However, the point is that having established by email what they would like to see and when they will be here and appointments made – that is the last we hear of them! Even when we know where they are staying and leave messages at the hotel – nothing! And then there are those people who do turn up and spend a couple of days seriously looking at houses, identify their dream home, meet with the owner, agree terms, meet with the lawyers and then after they have gone never communicate again. Over the years we have learned to distinguish serious buyers from “brick kickers” although never discount the latter who may be next years serious buyer. However, I still find it strange in these days of easy communication that some people find it difficult to simply say “Thanks but no thanks!” As Uncle Bill said “There’s nowt so queer as folk!”
There is a statistical war breaking out between two of the major international real estate companies with one claiming that residential prices in Thailand have fallen by 18% whilst another claims prices have risen by 5.4%. Reading the reports it seems they are not comparing like with like. I have reported month on month the decline in asking prices here in Koh Samui and it is the properties that have made that adjustment that have been selling. The Bangkok market is clearly different and generalized comments are not helpful. Make your own mind up and you can read the two reports here:
CBRE Richard Ellis and Knight Frank Global House Price Index .
Social Marketing is the buzz word to day and whether we like it or not you have to play along to stay in the game. To this end Ko Samui Properties can be found on Face Book and Twitter . Sign up to receive up to the date news on the market in Koh Samui including all the price reductions!
Going through and updating my contact list for Koh Samui agents and developers this month I found that I had to delete 21 companies. Of the ones that appear to be left, at least by their web presence, I was surprised to see properties still being offered which I know were sold months if not years ago. It is a continuing battle to keep the web site correct and up to date and we try and contact all owners on a regular basis to ensure the property is still available and correctly priced. We are not perfect and once in a while we can get caught out with recent sales, but not with regard to properties sold months ago!
Asking prices for land have remained pretty static and, until now, not fallen in the same way as house prices. However in the last month we have seen sellers start to drop their prices with reductions of between 20% and 27%.
More and more people are recognizing that there has been a significant market adjustment over the last 12-18 months. Each week we get instructions to reduce asking prices to levels more appropriate to the prevailing market conditions and you can find these on our web site at the Hot Press Offers . You will see a great number of properties with prices that have been reduced from between 17% and 37% with an average reduction this month of 34%. These reductions are producing sales and, although still not many, there are a few more buyers around than there were a few weeks ago.
4 Bedroom Ocean front House in Ban Tai – Baht 150,000,000 Now available at - Baht 99 million
We are also please to confirm that we have been invited to offer
The Residences at W Koh Samui
The Residences at W Koh Samui
A development of high quality villas adjoining the Starwood operated W Hotel in Maenam with spectacular ocean views towards Koh Phangan. Finished to the highest specification offering the discerning buyer the best in tropical living with the services of a five star hotel. Contact us for further details
To receive the full monthly Newsletter from Ko Samui Properties please email me at hbonning@kosamuiproperties.com
Wednesday 3 February 2010
Ko Samui Properties February Newsletter
One of my sources of information for this Newsletter is a regular email I received from Horst Meier who follows all the changes to the administrative districts throughout Thailand. A recent email included some interesting facts which if, like me, you do not speak or read Thai explain a few place names. I have included the full text below.
Social Marketing is the buzz word to day and whether we like it or not you have to play along to stay in the game. To this end Ko Samui Properties can be found on Face Book at_ http://tiny.cc/SSJEi Twitter at http://tiny.cc/4XaHA . Sign up to receive up to the date news on the market in Koh Samui including all the price reductions!
Koh Samui is not alone in seeing significant reductions in residential prices as an article I reproduce below shows that Singapore has also seen price reductions of 26%.
And property prices here continue to fall! If you check our web site and look at the Hot Press Offers you will see a great number of properties with prices that have been reduced from between 17% and 37% with an average reduction this month of 28%. These reductions are now beginning to produce sales and, although still not many, there are a few more buyers around than there were a few weeks ago. NEW REDUCTIONS EVERY MONTH!
See in particular the following properties – CTRL + click to follow the link:
Now available at - Baht 19 million
Now available at - Baht 39 million
Now available at - Baht 22 million
If you would like to receive a full copy of the monthly Newsletter, please send an email to hbonning@kosamuiproperties.com
Monday 4 January 2010
Koh Samui - Review of the year
Another year has flown by and as we enter the New Year may I wish you all the best of health and good fortune for 2010 and for the Chinese Year of the Tiger which starts on 14th February but more on that next month! 2009 is probably not an ideal year to reflect on as the world seemed to lurch from one financial crisis to another. A year ago I was talking about the new coalition government from which we hoped for great things. Whilst they have survived I am not sure we have seen any major strides forward and political disharmony still exists. Neither did anything 
come of the discussions at the time to extend leases from 30 years to 90 years. However the visit to Koh Samui by the Prime Minister did herald the release of funds to improve the roads and evidence of that can now be seen as the ring road is bei
ng surfaced with tarmac with the stretch from Hua Thanon through to Bophut almost complete. The picture on the left is the stretch of road between Bangkok Samui Hospital and out office. The one on the right is by The Cliff Restaurant on the way to Lamai and shows the new road lines. Much needed improvements to the drainage system are also in progress with the stretch of the ring road from Bangkok Hospital to just south of our office complete and also the section which always floods badly by the bridge next to the PTT Petrol Station also finished.
In March I first reported the signs of asking prices coming down and this has continued throughout the year and the sales that we have achieved have all been on properties where the prices have been reduced. There are buyers around but they are keenly aware that they have a lot of choice and a great deal of bargaining power. One Bangkok based agent with an office on the island (see report below) rightly says that there has been a slight increase in demand in the last quarter of the year but closing deals has been very difficult and time consuming.
The series of Jazz Concerts organised by Asiam Travel have been a great success and all well attended from the first three at the airport and then at Amari Palm Reef, Kandaburi and the last one at Chaweng Paradise Beach resort. There is no concert in January but the there will be one in February, brief details below and more information in next months Newsletter.
And property prices here continue to fall! If you check our web site and look at the Hot Press Offers you will see a great number of properties with prices that have been reduced from between 15% and 50% with an average reduction this month of 32%. These reductions are now beginning to produce sales and, although still not many, there are a few more buyers around than there were a few weeks ago. NEW REDUCTIONS EVERY MONTH!
See in particular the following properties – CTRL + click to follow the link:
Luxurious 5 Bed Villa with pool in tropical garden in Lipa Noi – originally Baht 53 million
Now available at - Baht 30 million
2 Bed house in Santi Thani – originally Baht 5.95 million
Now available at - Baht 2.95 million
3 Bedroom Luxury Villa with pool between Bangrak and Chaweng – originally Baht 49.5 million
Now available at - Baht 32 million
To receive the full version of the monthly Newsletter, please email hbonning@kosamuiproperties.com
come of the discussions at the time to extend leases from 30 years to 90 years. However the visit to Koh Samui by the Prime Minister did herald the release of funds to improve the roads and evidence of that can now be seen as the ring road is bei
ng surfaced with tarmac with the stretch from Hua Thanon through to Bophut almost complete. The picture on the left is the stretch of road between Bangkok Samui Hospital and out office. The one on the right is by The Cliff Restaurant on the way to Lamai and shows the new road lines. Much needed improvements to the drainage system are also in progress with the stretch of the ring road from Bangkok Hospital to just south of our office complete and also the section which always floods badly by the bridge next to the PTT Petrol Station also finished.In March I first reported the signs of asking prices coming down and this has continued throughout the year and the sales that we have achieved have all been on properties where the prices have been reduced. There are buyers around but they are keenly aware that they have a lot of choice and a great deal of bargaining power. One Bangkok based agent with an office on the island (see report below) rightly says that there has been a slight increase in demand in the last quarter of the year but closing deals has been very difficult and time consuming.
The series of Jazz Concerts organised by Asiam Travel have been a great success and all well attended from the first three at the airport and then at Amari Palm Reef, Kandaburi and the last one at Chaweng Paradise Beach resort. There is no concert in January but the there will be one in February, brief details below and more information in next months Newsletter.
And property prices here continue to fall! If you check our web site and look at the Hot Press Offers you will see a great number of properties with prices that have been reduced from between 15% and 50% with an average reduction this month of 32%. These reductions are now beginning to produce sales and, although still not many, there are a few more buyers around than there were a few weeks ago. NEW REDUCTIONS EVERY MONTH!
See in particular the following properties – CTRL + click to follow the link:
Luxurious 5 Bed Villa with pool in tropical garden in Lipa Noi – originally Baht 53 million
Now available at - Baht 30 million
2 Bed house in Santi Thani – originally Baht 5.95 million
Now available at - Baht 2.95 million
3 Bedroom Luxury Villa with pool between Bangrak and Chaweng – originally Baht 49.5 million
Now available at - Baht 32 million
To receive the full version of the monthly Newsletter, please email hbonning@kosamuiproperties.com
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