Industrial land remains attractive

It has not seen any obvious negative impact on the industrial land market yet, the company said.
Managing director Teerawit Limthongsakul said that the demand for industrial land plots has enjoyed constant growth, with the overall price last year surging around 10 per cent above the previous year.
In fact, the price in the eastern Bangkok zone, which includes Lat Krabang, Bang Phli, Chon Buri, Chachoengsao and Prachin Buri, had increased by above 13 per cent.
The Eastern Seaboard in Chon Buri and the Eastern Economic Corridor (EEC) in Rayong were being developed in line with the government’s plan, he noted. In the overall picture, the supply of industrial land plots will increase by 20,000 rai (3200 hectares), or 20 per cent above 2017, with the largest supply in the market expected to come from the Eastern Seaboard.
 Meanwhile, the rental factory and warehouse market enjoys stability due to its continuous rental growth. The US-China trade war has made Thailand one of the most attractive countries for Chinese investors. 
Last year, the average factory rental rate increased by 5 per cent to Bt200 per square metre per month from the previous year. The northern Bangkok zone recorded the highest growth of factory rental rates at 10 per cent year on year, with the average price in this zone around Bt195/sq m/month, though the occupancy rate was lower than other zones.
 The average warehouse rental rate has maintained at Bt150-160/sq m/month. The eastern Bangkok zone hit the highest average rate at Bt170/sq m/month. In terms of the occupancy rate, the northern and eastern Bangkok zones made up to 90 per cent, while the overall market had an 80-85 per cent average.
Industrial estate developers have placed great importance on the EEC project, although it has been halted until the new government is formed. Meanwhile, the readiness for land development and human resources has resulted in expansion of industrial land sales and rentals, particularly in the three provinces of Chachoengsao, Chon Buri and Rayong.
If the new government continues the EEC project, the scenario would see the development of several infrastructure projects, including a dual-track railway that bridges Thailand to other Asean countries, the expansion of U-tapao airport and the expansion of ports. The result would see rapid growth of the entire logistics system and the expansion of the industrial sector in that particular area, said Teerawit.