The lack of a permanent government is expected to have a detrimental impact on Thailand’s Industrial Estate sector, according to a new report from Colliers International Thailand.
Political problems have meant a new board has not yet been appointed to Thailand’s Board of Investment (BOI), and the present sub-committee is only able to approve projects of up to THB200 million in value, meaning larger projects are currently on hold.
According to Colliers’ Industrial Market H2 2013 report, issued last week, approximately 9,000 rai were added in 2013 with the total land area of all industrial estates, parks and zones increasing to approximately 143,200 rai at approximately 70 industrial estates. The Eastern Seaboard area represents the largest share of the industrial estate market, especially in Chonburi and Rayong provinces.
Average occupancy rates in the Central area were the highest at 87 percent, while the Eastern Seaboard area was most popular with foreign and local investors in 2013. Colliers predicted this will continue due to the lower likelihood of floods, a high number of new factories related to the automotive industry and its proximity to the Deep Seaport.
The BOI is expected to change the investment privilege policy in 2015 to prepare for the introduction of the ASEAN Economic Community (AEC 2015) in December next year, and to increase the competitiveness of Thailand throughout Southeast Asia.
Colliers reported that many industrial estate developers already started their new industrial estates last year and some expect to launch this year, especially in Prachinburi province.
The Industrial Estate Authority of Thailand (IEAT) also plans to develop new industrial estates in many provinces around Thailand. Some of them have begun studies already and decisions should be made this year about the actual locations and total land area.
Read the full Colliers Industrial Market 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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