Published on October 30, 2006 -Island's real estate industry leaders welcome quality builder-designer

Woods Bagot's opening of its Koh Samui office last week marks a positive turn for the island's property market, said key builders at this popular resort.

At a formal launch at Dhevatara Cove in Lipa Noi, John Birt, who heads the island's largest property management outfit, Samui Villas & Homes, said: "Woods Bagot will add another notch up for Samui's residential market."

Birt, who has been operating on the island for six years, said Woods Bagot's presence would greatly strengthen confidence among investors who are concerned about a spate of reports about shady outfits operating on Samui.

Some builders do not deliver homes to the buyers, while others abscond with the payment. Of late, the authorities have been attempting to clean up such rings.

At the launch party at Dhevatara Cove, which contains luxury villas on the western coast, the estate's representative, Steve Owen, said he was pleased to hold the function as Woods Bagot had done an excellent job with the project.

"We used Woods Bagot for Dhevatara Cove and Dhevatara Residences in Bo Phud," said Owen. All the company's projects are by the sea, commanding scenic views.

With a total of half a dozen sites on Samui, Dhevatara also has projects in the Maldives, Seychelles and Malaysia.

Woods Bagot Thailand's chief executive Tim Beaumont beamed with pride as he opened the Samui office.

 "Today Samui accounts for 25 per cent of our business in Thailand," he said. "Since venturing here with the Dhevatara projects two years ago, the architecture-design company has made rapid progress and is now building a number of medium-scale residential estates.

Commenting on the current situation, where Thai authorities are investigating the business practices of foreign outfits operating in the Kingdom, Beaumont said: "I am very comfortable with that. In the long run, it will be good for Samui and for good developers."

The weeding out of bad operators will do much to help Samui's growth as a quality destination, said Birt, who has seen a number of cases where unscrupulous sellers have hurt the island's reputation, not to mention shaking the confidence of international buyers.

"Samui is largely a cash market," he said. "There is not much bank financing available and most of the buyers have the cash." They are more careful today and want to see the homes, check the deeds and contracts before buying.

The days of selling off-plan homes are rather limited, he added, unless the developer has a solid reputation and standing.

"This is why Dhevatara is going ahead with the construction of the villas. It is easier to sell them once they are completed," said Owen. "It also builds up our company's name."

Even with the recent slowdown in real-estate activity following the reports of ugly disputes and a shooting incident last year, Samui continues to attract investors.

In Bo Phud, Makro and Big C have cleared land to construct two gigantic stores near the existing Tesco Lotus mall, which always appears to be packed.

At Chaweng Beach further north, visitors cannot help but be stunned by the immense changes coming to this once sleepy  part of the island as a glut of hotels, shops and restaurants jam the strip. There are 7-Eleven stores every 150-metres on Chaweng. But the island is still short of infrastructure such as roads, drinking water and drainage. Many establishments still depend on artesian wells to obtain fresh water as they cannot depend on provincial tap water, which is struggling to function properly.

The massive flooding in Chaweng and Bo Phud last December exposed inadequate drainage. Even now, many shops and bars in Chaweng simply discharge wastewater onto the streets, explaining the stench in many areas.

Samui officials recently banned flat-roof buildings, saying they look horrible. Only pointed roofs are now allowed.

At the same time, migrant workers - many from the impoverished Northeast - are allowed to live in ramshackle huts in shantytowns sprouting along inland streets.

Samui lacks basic housing for low-income labourers, reflecting stark imbalances on a cash-rich tourist island. These less-than-colourful slums are unique in that they cannot be found in other resort towns like Phuket or Hua Hin.

Beaumont said his company was doing its small part to address the inequalities among southern communities.

The firm is offering four scholarships for southern students to complete university in Yala. "We don't believe in isolating people," he said. "We would like to help narrow the divide."

Itthi C Tan
The Nation
LIPA NOI, KOH SAMUI