EEC land prices surge as foreign capital reshapes Thailand’s industrial market

Foreign capital, particularly Chinese investment, is significantly reshaping Thailand’s industrial estate market. Although investment decisions briefly slowed in early March 2026 due to travel-related factors and economic uncertainty, most investors resumed negotiations and continued expanding their investments once the situation eased.

This has kept Thailand’s industrial land and logistics market hot in the first quarter of 2026, especially in the Eastern Economic Corridor (EEC), a key magnet for foreign capital.

Phongphan Phloiphet, Senior Manager, Logistics & Industrial, at Cushman & Wakefield Thailand, said land prices in Chon Buri and Rayong had risen by 20-30% over the past two years, driven by Chinese investors buying land both inside and outside industrial estates.

Data for the first quarter of 2026 showed that Thailand had about 222,388 rai of industrial estate land, up by around 600 rai from the end of 2025 following the expansion of a new industrial estate in Chon Buri.

A key point to watch is that the vacancy rate for land in industrial estates fell to just 6.2%, down from 6.52% in the previous quarter, reflecting still-strong demand for land despite continued uncertainty in the global economy.

At the same time, the average nationwide selling price of industrial land remained stable at 8.31 million baht per rai. However, the EEC shows a clear difference, with Chon Buri recording the highest average price at 9.5 million baht per rai, followed by Chachoengsao at 7.75 million baht per rai and Rayong at 7.5 million baht per rai.

“Prices remain high partly because more second-hand land and second-hand factories have been released onto the market, helping ease price pressure in the short term. However, in 2026-2027, more than 20,290 rai of new industrial estate land will enter the market, which could become a major factor intensifying competition in the future,” he said.

Although demand for ready-built factories remains steady, the warehouse market is beginning to show clearer signs of slowing.

Data for the first quarter of 2026 showed that nationwide ready-built warehouse space stood at about 6.05 million square metres, close to the previous year’s level. However, the vacancy rate rose to 15.54%, up from 15.23% in the fourth quarter of 2025.

The main factor was the slowing global economy, which has affected manufacturing and exports. At the same time, new warehouse space continues to enter the market.

For ready-built factories, total space remained unchanged from the end of last year at 3.42 million square metres, but the vacancy rate rose to 10.57%, up from 9.53%.

The overall picture shows that while demand remains, it is not growing fast enough to absorb new supply.

Rents stay flat, but competition heats up

Industrial rents have remained stable from the previous year. Ready-built warehouses command an average rent of 158 baht per square metre per month, while ready-built factories average 194 baht per square metre per month.

Phongphan expects factory rental demand to continue growing, supported by Thailand’s strategic location, which remains attractive to foreign investors, particularly in electronics and automotive industries.

“The warehouse segment is facing major pressure because more than 461,000 square metres of new space will enter the market over the next three years. This large volume of supply will intensify price competition and limit opportunities to raise rents, even though land and construction costs continue to rise,” he said.

Many operators are beginning to adjust their strategies by developing specialised warehouses, such as smart warehouses, temperature-controlled warehouses and automated distribution centres, to differentiate themselves from competitors.

‘Grey Chinese capital’ becomes a major state challenge

Another issue attracting increasing attention is the inflow of foreign capital, especially Chinese investors buying large plots of land and developing factories in Thailand.

The government and relevant agencies need to tighten scrutiny of land ownership, construction permits, factory licences and environmental impact assessments.

In the past, some investors operated legally, while others tried to exploit legal loopholes to do business in Thailand. Concerns are not limited to business competition, but also include environmental problems, illegal labour and long-term impacts on local communities.

However, after intensified crackdowns, the trend among new Chinese investors entering Thailand is expected to shift towards “clean Chinese capital”, or groups operating legally.

Second half to decide Thailand’s industrial market

Amid global economic volatility, Thailand’s industrial land market continues to benefit from production-base relocation and trade tensions between major powers.

However, the key challenge from now on is not only attracting foreign investment, but also balancing “economic growth” with “investment quality”.

Foreign capital can help stimulate the economy and create jobs, but without strict oversight, Thailand could face environmental costs and long-term structural problems.

The year 2026 is therefore not merely a year of industrial estate expansion. It is a year that shows Thailand is truly standing at a crossroads between growth and the screening of capital quality.