Demand for rented factories and industrial land in Thailand is predicted to increase this year according to research from Knight Frank Thailand.
In its Industrial Property Brief report, the agency said this year is predicted to be one of strong growth for foreign direct investments (FDIs), with encouraging activity levels already seen in manufacturing sector during the first half of the year.
With the upcoming Board of Investment’s new investment promotion policy, demand for rented factories and industrial land is expected to rise over the next 18 months, the agency said.
It noted that buyer confidence in Ayutthaya and Pathumthani has started to return as transactions, occupancy rates and land prices rose.
The total supply of Serviced Industrial Land Plots during Q1 2013 amounted to 120,425 rai, an increase of 6.07 percent on a year-on-year basis.
The occupancy rate for factory rental’s stood at 86.82 percent in the first three months of the year, a slight dip compared to 87.62 percent in the previous quarter. This can be attributed to new supply entering the market, Knight Frank said.
For the period of January to April 2013 alone, the level of FDIs rose to close, or more than, levels seen in some sectors during 2011, and registered almost 35 percent of 2012’s level across all sectors.
Major investments announced in the first six months of 2013 include Honda in Rojana Industrial park, Prachinburi, Toyota in Gateway City, Bridgestone in Amata Nakorn, Chonburi and Electrolux in Hemeraj Rayong Industrial Land.
Andrew Batt, International Group Editor of PropertyGuru, wrote this story. To contact him about this or other stories email andrew@allproperty.com.sg
Recent stories you may have missed:
Thailand property popularity surges
Eight Phuket condos up for auction
Myanmar buyers look to London
Revealed: Thailand’s priciest land