By Shabnam Muzammil:
The demand for industrial properties in Thailand this year is expected to be driven by foreign direct investment (FDI), noted a study by Knight Frank Thailand.
Overseas investors continue to favour good logistics infrastructure, particularly in areas not susceptible to flooding, said Marcus Burtenshaw Executive Director at Knight Frank.
In Q4 2012, the overall supply of serviced industrial-land parcels (SILPs) in parks, zones and estates rose 2.07 percent to 125,325 rai (20,052 ha) compared to the same period in 2011.
For the entire year, sales of industrial land surged 26 percent (1,104 rai) to 5,288 rai compared to the previous year.
There was also positive absorption for eight straight quarters thanks to record-high FDI inflows, particularly from Japan.
Prices of industrial land rose by around five percent on average in 2012. The highest increase was seen by serviced industrial land in provinces that were not affected by the 2011 flood.
Values of industrial land in the Eastern Seaboard climbed 6.34 percent while those in the Central Eastern Zone (Prachin Buri province and some areas of Chachoengsao) increased 6.43 percent. Prices of some industrial land in the Eastern Seaboard soared also by 15 percent to 20 percent due to strong demand.
Compared to 2011’s, the overall inventory of ready-built factories grew 17.82 percent in 2012 to 2.65 million sq m, while the occupancy rate of rental units rose to 89.76 percent in Q4 2012 from 88.99 percent in the previous quarter.
Shabnam Muzammil, Senior Journalist at PropertyGuru, wrote this story. To contact her about this or other stories email shabnam@allproperty.com.sg
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