Koh Chang beginning to shine -
July 3, 2006
Koh Chang is simply a gem in the rough.
And set in the Gulf of Thailand 270kms southeast of Bangkok, agents and
developers alike say Koh Chang is only beginning to shine.
Koh Chang
is simply a gem in the rough. And set in the Gulf of Thailand 270kms
southeast of Bangkok, agents and developers alike say Koh Chang is only
beginning to shine.
A national park covers about 75% of the island, helping preserve a rich
evergreen forest that clothes dramatic hillsides rising from a narrow
coastal strip. Beaches, waterfalls, coral gardens and bird life abound.
Impressed by the island’s development potential, Prime Minister Shinawatra
paid a visit in 2002 and heralded his vision for the future of Thailand’s
second largest island: Thailand’s next Phuket, a playground of the rich.
Not long after, a US$12.5-million tourism development plan under a
government economic stimulus scheme was jointly drafted by state agencies
including the Tourism Authority of Thailand, the Town and Country Planning
Department, the Forestry Department, and the Trat provincial authority.
Turning Koh Chang into a "second Phuket" would see road construction
projects, wastewater treatment and garbage disposal projects, and three
projects to develop tourism facilities put into action. Huge swaths of
beachside land were quickly snapped up by land speculators from the island’s
largely indigenous fishing and farming community that had held title deeds
for generations.
Resorts of all sizes went up along the island’s west coast over the next few
years. Land that had sold for Bht300,000 a rai in those heady days now sells
for an average of Bt5 to 6 million - if it can be found.
The west coast of the island is basically sold out, said Roland Steiner, the
Director of Siam Royal View Group, a pioneering outfit that is building the
Siam Royal View, a massive 360-rai condominium development in the first
building phase.
Siam Royal View has sold a lot of beach front in pre sales, explained
Steiner, who said that 60% of phase 1 plots are sold. There is a huge demand
for products such as these in Koh Chang but none seems to be available. We
are holding back on making subsequent sales because we need to keep
building. Demand is outstripping supply.
Why the demand? Steiner’s explanation is that both the new local airport in
Trat and the new international Suvarnabhumi Airport are having a dramatic
affect on how new property investors are looking at southeast provinces like
Trat. Places like Pattaya are becoming too congested for some people looking
to get away from it all.
A pristine destination like Koh Chang has a lot of attraction for people in
Bangkok, he said. And business is good.
Koh Chang is essentially experiencing a second wave of land buying. Those
who bought land following the Prime Minister’s proclamation are now selling,
and this is pushing land prices to a premium. On Koh Chang’s tourism heavy
White Sand Beach beach, a rai of land can easily go for Bt20 million. One
bar owner said he was offered Bt40 million for his land and business which
sits on less than a rai.
However, in many places, the island still lacks in suitable land or
residences for the person looking for a weekend get-away condo or retirement
home.
Ian McNamara, an up-and-coming real estate agent on Koh Chang puts it
simply: The land is overpriced and there is no infrastructure in place to
attract people willing to spend money.
McNamara, who operates a website as the basis of his real estate business,
puts the lack of buyers and developers on the island down to several
reasons.
Firstly, he explained that the lack of basic infrastructure was a hindrance.
He refers to the fact that the island voted against the government in power
during the last federal elections and so several key projects were put on
hold. Saying that, the TOT has only recently got around to putting in
telephone lines along the full length of the west coast. And despite
promises from the government, piped water remains the responsibility of
private land owners.
Another reason is the lack of bonded real estate agents. Said Siam Royal
View’s Roland: Real estate agents are popping up. The whole industry is
starting up. Before we came there was no private real estate sector, but
scouting for land is happening. There is loads of untapped potential on this
island. Farmers and fishermen are waiting to sell land. Koh Chang is
definitely a place for experienced land scouts to make a good living.
McNamara maintained that land was very overpriced on the island and was
unlikely to go down in the short term. However, this was only the case on
the more developed west coast of the island. McNamara is adamant that the
small-scale investor should pay special attention to the east coast of the
island.
He explained that while on the west coast it is unlikely you will find beach
plots, there is still quite the an availability of small plots of titled
land next to quiet local villages which aren’t home to dozens of identical
shacks selling beachwear, as in the touristy west coast.
There is also an array of stunning mountain and bay scenery on the east
coast. The days of real bargains have gone, but land prices are still
significantly cheaper than those on the sunset side of the island, said
McNamara.
He explained that well located Chanote titled land can still be had for Bt1
to 1.5 million/rai. Beachfront goes for Bt4 to 5 million for a single rai
with access from the main road. Three to five rai plots of Chanote or NS3
title land go for about Bt3 million.
He maintained that people are selling plots on the east coast and prices are
unlikely to go anywhere but up.
Land prices really won’t go down on the east coast, he said. Many places
will remain unsold for the next while but people will eventually come in and
buy, and then prices will go up. You can see that happening on the east
coast because, you want privacy and no backpackers.
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