Some of the most expensive villas in Thailand are being built on Koh Samui and will be managed by brands such as W, Banyan Tree, Four Seasons-managed The Estates, Park Hyatt and Conrad - with starting prices of US$2 million to US$3 million.

Hardly the domain of budget travellers.

CB Richard Ellis Thailand chairman David Simister says that unlike other resort destinations in Thailand, Koh Samui's luxury property market started much later than other areas and, as a result of careful planning, has been much more purposeful in the way it caters to the needs of international investors searching for an exclusive resort property.

'Koh Samui's development pace, when compared to Phuket, allows the island to be positioned as Asia's boutique island destination,' Mr Simister adds.

'Upcoming luxury developments, such as W Koh Samui Retreat and Residences and The Estates, will continue to drive the sector forward.

'I would expect a development such as the villas being produced at the W Residences to set new standards in luxury, not just on Koh Samui, but for Thailand. I believe this is the best-branded residences scheme in Southeast Asia as it will have the largest absolute beachfront villas on two-acre plots.

'The trend to developing smaller branded residences is most certainly bringing a new higher-end buying demographic to the island.'

The W Koh Samui Residences, scheduled to open in 2010, will add 17 villas with three to five bedrooms to Koh Samui's exclusive branded residence scene. Eleven villas are still available, each with a private beachfront location. They are priced from US$3 million to US$7 million.

Sunny Bajaj, managing director of W Residences developer Amburaya Hotels & Resorts, says the north-shore property in Mae Nam is 'one of the most spectacular headland sites ever obtained in Thailand'.

'The Koh Samui property market is very different to that of other resort areas in Thailand,' Mr Bajaj says.

'In other resort areas, such as Phuket and Pattaya, we are seeing developments with hundreds of condominium units, but Koh Samui is moving away from the mass market and catering to an elite group of wealthy buyers in limited developments where quantity is no substitute for quality.

'Koh Samui is very much a boutique upmarket resort destination and I think that with the developments coming online such as WResidences, we will see some of the most luxurious resort property in the world on the island in the near future.'

The development of Koh Samui will undoubtedly lead to the development of nearby sister islands Koh Phangnan and Koh Tao.

Like Koh Samui, these two islands are a staple of the backpacker circuit and are yet to be largely developed, but once there are no prime sites remaining on Koh Samui - which has the advantage of its own airport - developers are sure to turn their attention to these pristine islands.