Land prices in Koh Samui are expected to rise between 20 per cent and 30 per cent a year as a number of property firms expand their investment in sectors such as retail, residential-project developments, hotels and resorts, Thailand Estates Corporation (TEC)'s chief executive Chaiyagarn Sudamphanthorn said.
TEC is a local property developer on the island.
He said land prices in Koh Samui have risen from Bt10 million per rai in 2003 to Bt60 million per rai this year for land designated for retail and commercial use.
Meanwhile, price of land designated for residential projects and located close to the beach is now between Bt15 million and Bt25 million per rai.
Land located on the hills is available for Bt5 million to Bt15 million per rai.
Chaiyagarn said demand for land in Koh Samui registered strong growth after a number of retail companies invested in the island.
These companies include Siam Makro, Tesco Lotus and Big C.
A number of luxury hotel-and-resort companies have also grown their investment in the island.
According to research by international property agency Colliers International Thailand, about 12 luxury hotels are under construction and are expected to start
operations between this year and 2011.
The cumulative value of the hotel projects is Bt30 billion.
These projects include Santiburi Residence, Conrad Koh Samui Resort & Spa, W Retreat & Residence, Dusit Resort Samui, Banyan Tree Koh Samui, Intercontinental Resort Samui, Park Hyatt Koh Samui, Vana Belle Luxury Collection Samui, X2 Resort Samui, Ibis Samui, IMM and The Sarann.
Given the strong demand for real estate in Koh Samui, Chaiyagarn estimates that land, especially stretches close to the beach and commercial areas, will touch Bt100 million per rai by 2011.
Sinthoranee Property's managing director Wuttichai Phaoenchoke, who recently expanded his business in Koh Samui and has developed a residential project under The Sea brand, said the company has invested in the island because it believes that demand for residential projects, especially from foreign investors, has strong potential.
The company also plans to launch a new resort development in Koh Samui this year.