Phuket and Koh Samui are two of Thailand and Asia’s leading resort destinations, each offering unique opportunities for property investment. Both islands are renowned for their tropical charm, but they differ in infrastructure, property types, buyer preferences, and maturity. If you are considering buying a holiday home, rental investment, or a permanent residence, understanding the nuances of these two islands is crucial to making the right choice.
Phuket and Samui: Stability from Tourist-Driven Demand
Both Phuket and Koh Samui are predominantly tourist-driven property markets, with their performance closely correlated to their tourism sectors. International buyers, many of whom first discover the islands during vacations, play a key role in driving demand. These buyers typically pay in cash, as non-Thai nationals cannot secure mortgages for properties in Thailand. This dominance of cash transactions adds a layer of stability to the markets, insulating them from the economic fluctuations that impact regions more dependent on mortgage financing.
Historically, in the face of global challenges, both Phuket and Koh Samui have consistently bounced back strongly, supported by their unwavering appeal to tourists. Most recently, the resilience of these markets was proved once again by the way they quickly recovered after the Covid pandemic. Initiatives like Phuket’s Sandbox program, which allowed fully vaccinated travellers to visit during global lockdowns, provided a much-needed boost to the island’s property market.
The consistently strong tourist demand in both islands has underpinned their real estate markets for decades, making them attractive options for international investors seeking both stability and growth potential.
Infrastructure, Accessibility & Amenities
One of the most noticeable differences between Phuket and Koh Samui is the level of facilities and amenities, those of Phuket being significantly more developed and extensive. Phuket island offers a wide range of shopping centres, including luxury malls and outlets catering to everyday needs, as well as a greater number of international schools, hospitals, and recreational facilities. This development reflects Phuket’s long-standing status as a major international resort destination, which has driven the need for well-maintained infrastructure and a higher standard of amenities.
Phuket also features a more advanced road network and reliable utilities, complimented by its connectivity to the mainland via the Sarasin Bridge. This accessibility, combined with its robust infrastructure, makes it particularly appealing to expatriates and families seeking a more urbanised island lifestyle.
Koh Samui, while less developed, has made significant strides since being granted municipality status in 2012. This change allowed the island to become self-governing, leading to substantial improvements in infrastructure, facilities, and amenities. Samui now has a good network of concrete roads encircling the island and has enhanced its utilities to meet the needs of its growing population and tourism sector. However, compared to Phuket, Koh Samui’s shopping centres, schools, and medical facilities are more limited, reflecting its smaller scale and more laid-back appeal.
When it comes to accessibility, Phuket International Airport stands out with extensive direct connections to Europe, Asia, and Australia, as well as domestic flights to major cities in Thailand. By comparison, Koh Samui’s international airport offers flights primarily to Bangkok and a smaller number of direct international routes, including Hong Kong, Singapore, Malaysia, and mainland China. Ferry services further connect Koh Samui to Surat Thani and neighbouring islands like Koh Phangan and Koh Tao, offering additional options for travellers.
Phuket’s more developed infrastructure, broader amenities, and superior connectivity make it the preferred choice for those seeking convenience and a wide range of options. In contrast, Koh Samui’s improvements in recent years provide a balance of modern conveniences while maintaining a tranquil and unspoiled charm, appealing to those who value a quieter island lifestyle.
Property Types and Market Dynamics
One of the key differences between the two markets is the composition of property types. Phuket has a higher percentage of condominiums and apartments, while Koh Samui is overwhelmingly dominated by villas and houses. This distinction is partly due to zoning restrictions in Koh Samui, which limit the construction of freehold condominiums. Freehold condominiums in Phuket are distinct from normal apartments because they allow foreign investors to register the freehold directly in their own name, making them highly attractive to international buyers. Koh Samui’s options, by contrast, mainly consist of leasehold apartments or villas.
In Koh Samui, following the high-profile government crackdown in 2024 focused on Thailand’s resort destinations, which strictly enforced laws against the illegal use of limited companies by foreigners using Thai nominees to hold the freehold of land, developers have responded by offering more villas in the lower price bracket (5-10M THB) on a tenure of a single 30-year lease. This limited ownership term is reflected in cheaper sales prices, making leasehold villas a more accessible option in this segment. However, this noticeable increase in the supply of leasehold villas with a single 30-year term has not been observed in Phuket.
In Phuket, the diverse supply of condominiums in this price bracket provides an alternative to cheaper villas, making leasehold villas less prevalent. Furthermore, the post-COVID era in Phuket has seen a significant shift in demand toward villas, driven by families and long-term residents seeking more space and privacy. Many buyers relocated during the pandemic, purchasing villas to escape restrictions in their home countries. This trend has led to a noticeable increase in villa supply and sales in Phuket. Despite this shift, Phuket continues to offer a broader mix of property types compared to Koh Samui, catering to a wider range of investment and lifestyle goals.
Real Estate Investment Potential
Phuket’s more established property market generally provides a safer range of investment choices for those seeking reliability. The island is home to a higher proportion of long-established developers, including international companies, adding a layer of confidence for buyers. Phuket also offers a large selection of branded real estate. These projects are often affiliated with well-known hospitality or lifestyle brands, providing not only premium amenities but also safer investment options. These brands have a strong incentive to protect their reputations, ensuring high standards in both construction quality and ongoing services.
Both Phuket and Koh Samui have thriving rental markets, making them attractive for investors seeking rental income opportunities. However, the choice between the two destinations often comes down to an investor’s appetite for risk versus stability. Phuket’s more developed market attracts buyers looking for secure and stable investments, while Koh Samui, as a less mature market, offers potential for higher capital gains but carries greater risks, particularly with early-stage projects.
Both markets remain in a growth phase, with substantial new property developments alongside resales. This abundant supply can make reselling more challenging, as investors often face competition from discounted off-plan properties. Despite these challenges, both islands continue to draw international buyers due to their unique appeal, vibrant tourism sectors, and long-term investment potential.
Property Prices and Value for Money
At the entry level, property prices in Phuket and Koh Samui are comparable, with small condos starting around a few million THB and villas from 4-5 million THB. However, looking at like-for-like properties, property in Phuket is generally more expensive, partly due to higher land prices. These price differences become increasingly noticeable in the luxury segment, where Phuket villas include a number of oceanfront estates priced between 20-30 million USD, while Koh Samui’s high-end villas typically top out at around 9 million USD.
With a large amount of branded stock, Phuket has a significant number of luxury oceanfront apartments and condominiums with price tags of one million USD or more, offering exceptional views and premium amenities. In contrast, Koh Samui has no condominiums or apartments in this price bracket.
Phuket’s More Mature Property Market
While neither Phuket nor Koh Samui can be considered mature property markets by international standards, Phuket’s real estate sector is notably more developed. The island has benefited from international air connectivity since the 1980s, stimulating earlier growth in both its infrastructure and property market. Phuket’s more mature market has attracted a higher number of international developers and led to the proliferation of branded real estate projects. To add some perspective regarding resort developments on the two islands, Phuket’s first major resort condominium project, Allamanda at Laguna, was completed way back in 1993.
In contrast, Koh Samui began its transformation into a luxury destination more recently and remains in the earlier stages of development. To date, Koh Samui does not yet have a completed upscale resort freehold condominium development. However, Anava Samui on Ban Rak Beach, launched in the third quarter of 2024 with 564 units, will be the island’s first of this kind upon completion.
Suitability for Long-Term Living
For families and individuals seeking a permanent or semi-permanent residence, Phuket often emerges as the better choice due to its superior infrastructure, better air connectivity, more extensive facilities, and a much more diverse real estate market. Phuket offers a significantly wider range of property types to suit varying needs, from freehold condominiums to luxury villas and family-friendly houses.
When it comes to families with children, Phuket’s educational offerings are a major advantage, with around 16 international schools compared to Koh Samui’s 6 (depending on how they are categorised). Additionally, the island has far more extensive shopping amenities, offering everything from luxury malls to local markets, catering to all tastes and budgets.
Phuket is over twice the size of Koh Samui, with 576 square kilometres compared to Samui’s 229, and its longer period of development naturally means a greater variety of activities and destinations for leisure time. A superior network of roads, more frequent flights, and better overall accessibility make Phuket particularly appealing to digital nomads or those who live on the island part-time while commuting to other parts of Asia during the week for work.
For retirees or individuals looking for a more relaxed lifestyle and who are less concerned about extensive amenities, Koh Samui might be the better option. The island’s more laid-back, less developed vibe appeals to those who value tranquillity over modern conveniences.
At the end of the day, choosing between Phuket and Koh Samui often comes down to personal preference. While Phuket offers a more urbanised island experience with greater convenience, Samui’s charm lies in its unspoiled, slower-paced environment that resonates deeply with those seeking a retreat from the busier side of life.
