Eastern Corridor demand driving growth in industrial land market

The serviced industrial land market in the first half of 2024 experienced growth across the board, with increases in new supply, land sales, sales rates and asking prices, primarily driven by demand in the Eastern Economic Corridor (EEC).
Marcus Burtenshaw, executive director and head of occupier strategy and solutions at property consultant Knight Frank Thailand, said the first half of 2024 showed a strong, sustained demand for serviced industrial land in Thailand, particularly in the EEC.
“This trend underscores Thailand’s growing appeal as a hub for high-value, technology-driven industries,” he said. “With investments from both local and international players, coupled with government incentives, the growth in this sector is expected to continue.”
Knight Frank Thailand reported that 8,063 rai of serviced industrial land was sold or leased nationwide in the first half of 2024, a surge of 53% compared to the second half of 2023.
New supply added only 886 rai, bringing the total supply to 181,280 rai, an increase of just 0.5%.
The surge in demand along with a slight increase in new supply pushed the cumulative sales rate to 86.9% in the first half of 2024, a 3.9% rise from the previous period.
The key driver was the EEC, where 4,869 rai of land was transacted, representing 60% of the total transactions nationwide. Strategic locations in the EEC, supported by government incentives, were a significant factor in this growth.
Strong transactions were also seen in other areas, particularly in the central region and eastern provinces outside the EEC, including Prachin Buri and Sa Kaeo, along with Chanthaburi and Trat, where 1,297 rai and 1,274 rai of land was sold or leased, respectively.
The average asking price for serviced industrial land nationwide rose by 1.6% to 6.2 million baht per rai, up from 6 million baht per rai in the second half of 2023.
The highest average asking prices were recorded in Greater Bangkok, at 11.1 million baht per rai, marking a 2.2% increase. The peak price was observed in the Gemopolis Industrial Estate in Samut Prakan, reaching up to 16 million baht per rai.
The second-highest average price was in the EEC, at 6.7 million baht per rai, up 1.2%. Areas within the EEC also had the widest range of asking prices, ranging from 3.6 million to 12 million baht per rai.
Prices were notably higher along Motorway Route 7 (Bangkok-Ban Chang), followed by areas near the ports of Laem Chabang and Map Ta Phut, where improved infrastructure and accessibility drove increased demand.
In contrast, the Northeast had the lowest asking prices, starting from 2.2 million baht per rai, with the average asking price remaining unchanged from the second half of 2023 at 2.9 million baht per rai.
According to the Board of Investment, total investment promotion approvals in the first half of 2024 surged 37% year-on-year to 1,451 projects, with a 27% increase in investment value, reaching 476 billion baht.
Foreign direct investment drove much of this growth, accounting for 63% of the projects and 76% of the investment value.
China led with 329 projects worth 101.7 billion baht, followed by Singapore and Japan.
The electrical appliances and electronics sector attracted the most investment, with 170 projects worth 139 billion baht.