Sales of Serviced Industrial Land Plot (SILPs) in Thailand recorded a 56 percent year-on-year decline in 2013, despite registering an 8 percent quarter-on-quarter rise in Q4 2013.
In its latest Industry Marketview research report, CBRE Thailand noted that sales increased from 1,240 rai (200 hectares) in Q3 2013 to 1,350 rai (215 hectares) in Q4 2013.
The real estate agency noted that total sales of SILPs during 2013 were approximately 4,760 rai (760 hectares) compared to 10,870 rai (1,740 hectares) during 2012.
CBRE suggested that one reason for the decline in sales in 2013 came from plans by Thailand’s Board of Investment (BOI) to change investment incentives in 2012. Consequently, it said, companies advanced their plans by fuelling land sales in 2012. The BOI’s proposed changed have been cancelled for the time being.
The supply of completed SILPs is now increasing at a faster pace, CBRE noted.
A total of 4,300 rai (690 hectares) were completed in its survey basket, compared to 1,800 rai (290 hectares) in Q3 2013. Some of this increase in new supply had been delayed since 2012 because of the time required to obtain an Environmental Impact Assessments. This must be completed before a developer can start infrastructure and land subdivision for new phases of industrial estates and parks.
Read CBRE’s Thailand Industrial Marketview report here.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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