Koh Samui is becoming an attractive destination among Americans and European buyers seeking property in Thailand as prices offer better value than Phuket.

American and European buyers are shifting to the Samui residential market, where villa prices are roughly one-third of those in Phuket, as rising demand from Russian and Chinese buyers has driven up Phuket property prices.

Phattarachai Taweewong, research and communication director at property consultancy Colliers Thailand, said inquiries about residential units on Koh Samui have picked up since last year, primarily from Americans and Europeans.

"These buyers have shifted their interest from Phuket as prices there rose, while those on Koh Samui remain attractive," he said. "The most popular locations on Samui are Choeng Mon and Lamai beaches, where land prices average 10 million baht per rai."

With a budget of 30-50 million baht, buyers can acquire a villa with a sea view on Koh Samui with a usable area of 400 square metres on a 200-square-wah plot.

In contrast, the same budget in Phuket would only allow a prospective buyer to purchase a villa without a sea view, with a usable area of 150-200 sq m on a 100-sq-w plot.

However, villa supply on Koh Samui remains very limited. Over the past few years, only five villa projects, comprising fewer than 100 units in total, have been launched and all sold out within a year, said Mr Phattarachai.

"One of the reasons for Samui's limited villa supply is issues related to land title deeds," he said. "Despite this, the Samui property market has attracted not only buyers but also developers, some of whom have asked us to conduct studies on villa development."

Among the recent movements, SET-listed developer Supalai has plans to launch a single-detached house project, while Surat Thani-based Baansuay Group (Surat Thani) is preparing to develop villas.

Investors, particularly private funds, are also showing interest in the hotel sector, seeking hotels to acquire, as the island has gained global recognition from The White Lotus series, which has caused the average daily rate of Samui hotels to soar.

In addition to hotels, condos are another attractive sector for investment, particularly low-rise condos, as supply is still limited, with only a few projects with fewer than 200 units in total.

Prices are also appealing, ranging from 50,000 to 70,000 baht per sq m, Mr Phattarachai added.

"While the Bangkok property market slows, Samui is emerging as another location gaining interest this year," he said. "However, its performance is not as strong as that of Phuket."

Phuket remains a location with robust demand from both Thai and foreign buyers, driven by the tourism industry, resulting in the Phuket property market heating up over the past two years.

In 2024, both the condo and villa markets in Phuket reached historic peaks, with new supply launched totalling 14,718 units and 1,922 units, respectively, surging from 8,743 units and 505 units, respectively, a year earlier.

Sales were also robust, with 8,346 condo units and 1,249 villas sold last year. The top buyers were from Russia, China, the US, Australia, France, and the Middle East.