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Koh Samui's property market has boomed in recent years with developers and ex-pats rushing for slice of the tropical pie. So rapid is the expansion that attention has already been placed on the environmental impact caused by such a flurry of construction. The desire for real island living has prompted development opportunities further a field on neighbouring Koh Phangnan, with a number of projects already setting the standard.

Koh Phangan gained popularity with young partygoers and the alternative lifestyle fraternity, thanks mainly to its monthly full moon celebrations. However, much of the original island charm survives and this is behind what may become a boutique development boom.

Last year a total of 332,624 tourists visited Koh Phangan, about 87% of them foreigners and the islands natural attractions and adventure potential are now drawing a more well-heeled crowd.

British developer Adam Medway recently invested 60 million baht to develop the Mandalai Hotel, which will cater for high-end visitors seeking a hip, boutique resort on Koh Phangan.

Situated on a two-rai plot on Chaloklum Bay, the Mandalai has 12 suites right on the beach, developed at a cost of about five million each, with private in-room dining and Jacuzzis. ´´I see many opportunities to grow on the island," he said. "The number of tourist arrivals is increasing continually and the trend of tourist visitors has changed."

Condo projects have also become increasingly popular to foreign investors and are already beginning to spring up around the island. Although residential development is not expected to take hold as voraciously as it has in other tourist islands in Thailand, condominiums may become an increasingly common feature on Koh Phangan. "We will most likely see a market for condos in the future on Koh Phangan given their appeal to foreign investors," said Tamara Leighton of KP Properties.

However, it seems likely that the clientele on the island will demand a little more than the standard specification holiday home or investment property.The negative environmental impact that unconscientious development has caused in other parts of Thailand may offer lessons to those involved in the future development of unspoilt locations such as Koh Phangnan.

On an island, which has long attracted the slightly greener consumer, there appears to be a fitting response to some of the current projects already underway. Low-density development is on the rise and places like Sitara Village in Thong Nai Pan Noi, developed by KP properties, along with Green Core developments are aimed at buyers who are environmentally concerned about the future and therefore include a host of eco-friendly features such as tree preservation and solar power.

"It is our aim that Sitara Village becomes a benchmark for environmentally sustainable developments on Koh Phangnan," said Ms Leighton. "The benefit of learning from developments where environmental factors have not always been a priority, means there is a strong commitment amongst realtors, local Thais, tourists and investors alike that Koh Phangnan will follow a greener path."

Of two known condo projects currently being built on the west coast of the island, one will be limited to a maximum height of 12 metres, set 20 metres from the shore, while the other is carefully set into the hillside with dramatic sea views.

With government and self-imposed height restrictions such as these already in place, it seems unlikely that the shores of Koh Phangnan will be lined with high-rise condominium developments. The island's well-earned reputation for sun and full moon fun will only be an attractive prospect for investors if the island can maintain its image as an eco-destination.
 

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