House Hunting in … Thailand

An Island Estate in the Gulf of Thailand

$1.9 MILLION

This contemporary villa is in a gated development on Koh Samui, an island off the eastern coast of Thailand that has developed in recent years from a secluded fishing community into a popular tourist retreat.

Villa Silavaree, as the home is called, was built in 2011, one of 19 villas in the gated Santikhiri Estate, on the island’s less-populated southern coast. The current owners, an American family living elsewhere in Thailand, have been using it as a weekend home and an investment property to rent.

The half-acre compound is in a tropical hillside setting with waterfalls, a pond, gardens and panoramic views of the ocean and coastline. The villa’s name is derived from the Thai words for stone (“sila”) and water (“varee”), said Tim Skevington, the chief executive of Richmont’s Luxury Real Estate, an affiliate of Christie’s International Real Estate that has the listing. “The property is so named because of the use of waterfalls and water features, and the amazing natural stone outcrops that one sees throughout Samui Island.”

The property includes four structures: a two-bedroom main house, two one-bedroom guesthouses, and staff quarters with a bedroom, bathroom and kitchen that “could alternatively serve as a guesthouse or spa area,” Mr. Skevington said. He said a storage area near the pool deck was converted to an additional bedroom.

The two-story main house has a wraparound travertine terrace on the first level with numerous amenities, including an outdoor kitchen, bar and barbecue; a changing room with a bathroom; and covered areas with ceiling fans for lounging and dining. A few steps below is a saltwater infinity pool bordered by glass.

The top floor has an open plan with a living room, a kitchen-and-dining area and a guest bathroom. The kitchen is equipped with stainless steel appliances, cherry wood cabinets and Portuguese slate countertops. Folding glass doors open to another wide wraparound terrace. Two master bedrooms with en suite bathrooms are on the lower level.

The main house is connected by stone pathways to one-level bungalows on either side, which are similarly configured and constructed of concrete, wood and stone, with terra-cotta roofs. Each has a modest living area that opens to a spacious redwood deck, and a large loft bedroom upstairs with an en suite bathroom that has a sunken tub and indoor and outdoor showers.

Throughout the buildings on the estate, there are high ceilings with teak beams and numerous ceiling fans. Floors are honed travertine and Thai rosewood, and there is an abundance of teak cabinetry. Rooms are decorated with a mix of artwork and furnishings from Tibet, Bali, Burma and Morocco. The furnishings are not included in the asking price, Mr. Skevington said, but may be bought separately.

Koh Samui, about 20 miles from mainland Thailand, is part of the southern Surat Thani Province, known for its rubber trees and coconut plantations. The Santikhiri Estate, on its southern shore, offers residents a pool, a clubhouse and a hilltop yoga studio. The gated development is close to several spas and wellness centers, restaurants and beaches. Samui International Airport, on the northeastern side of Koh Samui, is about a 40-minute drive. Nathon Pier, the main ferry port, is about half an hour away, and Bangkok is about 475 miles north.

Market Overview

Prices for single-family detached houses (excluding land), condos and townhouses in Thailand have grown steadily since the 2008 global recession, according to recent housing data from the Bank of Thailand.

Koh Samui is seeing similar growth, agents said. “Mirroring Bangkok to some extent, the upper-tier homes in well-maintained estates are maintaining and increasing in value, and the lower end of the market is steadily attracting young or more budget-conscious buyers,” Mr. Skevington said.

As monsoon season draws to a close in December, agents expect home sales to pick up and continue to grow through February. “That is high season in Thailand, and many people look for vacation homes during that period,” said Benjamin W. Hart, the managing director of Integrity Legal, which has offices in Bangkok and the United States.

Koh Samui is often regarded as a low-key alternative to tourist spots like Phuket, Thailand’s largest island. Tourists are drawn to Samui’s 88 square miles of diverse geography, from its white-sand beaches to its coconut groves and mountainous rain forests.

John Jepson, a founder of Samui Property Locator, said he has seen many new developments in recent years, reflecting rising foreign interest, particularly from the Chinese. “Every year we have new project launches,” he said. “There’s probably 10 to 15 new projects coming on the market since the beginning of this year.”

Many of them, he added, are smaller developments like the Samui Green Cottages, a villa community in Chaweng, on the eastern coast, expected to be completed next summer.

Luxury properties on the island start at around $450,000, Mr. Jepson said, and typically increase in price as they get closer to the water.

Who Buys on Koh Samui

Foreigners are active in the island’s housing market, real estate agents said.

“The great majority of buyers are from Australia, Hong Kong, Singapore, the United States, Britain, France and, increasingly, from China,” Mr. Skevington said.

Some developers have been marketing directly to China, Mr. Jepson said, which helps explain the increase in interest there. He said he has also seen some Middle Eastern buyers, specifically from Dubai.

“For my agency, 90 percent of the prospective buyers are from overseas,” he said.

Many foreign buyers are looking for luxury homes in a tropical setting for retirement or to use for vacation, with rental income potential. They also want access to amenities, and “Samui is loaded with five-star hotels, restaurants and beach clubs, spas and world-class wellness centers,” Mr. Skevington said.

Buying Basics

The Thai government imposes restrictions on foreign ownership of real estate. Foreigners cannot buy land, but they can own the buildings on the land.

A common arrangement is to buy a house with a land lease, typically for a 30-year period, said Luca Bernardinetti, the chief executive of the Mahanakorn Partners Group, a law firm in Bangkok. (The 30-year land lease on this particular Samui property was recently renewed, Mr. Skevington said.)

A foreign buyer may be able to own land through a private company, but the process can be complicated, lawyers said, and there are various restrictions.

Foreigners are allowed to own condominium units. However, foreign ownership in a condo building cannot exceed 49 percent, Mr. Bernardinetti said.

Most real estate agents recommended that buyers hire an experienced local lawyer to guide them through the process and to handle the necessary due diligence. “Due diligence is really important — there are some scams that people can get roped into,” Mr. Hart said, adding that he has seen this happen with “off-plan,” or preconstruction, sales.

A lawyer can also represent a buyer at the closing through power of attorney.

Websites

Tourism Authority of Thailand: tourismthailand.org

Thai government: thaigov.go.th

Santikhiri Estate: santikhirisamui.com

Languages and Currency

Thai; baht (1 baht = $0.03)

Taxes and Fees

There are no property taxes on this home, Mr. Skevington said. But there are annual maintenance fees of around $7,000, paid to the gated community.

The seller pays the sales commission, which averages 3 to 5 percent of the sale price, and typically covers most of the closing costs, including the stamp duty.

“Generally, the closing costs are, in total, approximately 6 percent” of the home’s sale price, Mr. Bernardinetti said.

Contact

Tim Skevington, Richmont’s Luxury Real Estate, Christie’s International Real Estate, 011-66-02-649-2619; richmonts.com

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