Thailand’s industrial land market thrives amid U.S. policy shifts

Demand for industrial estate land in Thailand is projected to stay strong this year, building on last year’s robust sales fueled by shifts in U.S. import and foreign policies.

Key takeaways

• Industrial estate land sales in Thailand are set to remain robust in 2025, driven by changes in U.S. trade policies and relocation of production bases from China.
• Land prices increased by 8.45% in 2024, with a total of 2,968 rai added to supply, maintaining vacancy rates below 10% since mid-2023.
• Demand is fueled by industries like EVs, auto parts, and electronics, with China, Taiwan, and the U.S. leading investor interest.

This sustained interest is largely driven by companies seeking to diversify their supply chains and reduce reliance on single markets. Additionally, government incentives and infrastructure developments, such as improved transportation networks, are further boosting the appeal of industrial estates. Experts predict that sectors like electronics, automotive, and renewable energy will play a significant role in maintaining this momentum, as global manufacturers continue to prioritize strategic investments in Southeast Asia.

Surachet Kongcheep, head of research and consultancy, explained the significant impact of these policy shifts on industries, particularly businesses focused on U.S. exports and manufacturers operating out of China.

While Thailand may not be the top choice for relocating businesses, it remains a key beneficiary of anticipated U.S. tariff adjustments, particularly those targeting Chinese imports.

This relocation trend, largely centered on shifting production bases to Thailand, is projected to persist through 2025 and beyond until the U.S. revises its trade policies.

The surge in interest from investors and manufacturers focused on export-oriented industries has significantly boosted demand for serviced industrial land plots (SILP), factory buildings, and ready-built warehouses, he added.

Strong performance in 2024

In 2024, the total new supply of SILP nationwide amounted to 2,968 rai, bringing the total industrial estate land in Thailand to 219,388 rai, according to Cushman & Wakefield.

The vacancy rate for SILP dropped to 9.09% at the end of 2024, down from 9.25% in 2023, maintaining levels below 10% since the second quarter of 2023.

Land prices also saw a significant increase, with the average selling price rising by 8.45% to 7.7 million baht per rai, up from 7.1 million baht the previous year.

Key drivers of demand

China led the list of countries driving demand for SILP, followed by Taiwan, the U.S., South Korea, and European nations relocating their manufacturing bases from China.

The top five industries contributing to this demand were electric vehicles (EV), auto parts, electronics, imported goods, and EV batteries, according to Surachet.

Industrial estates with the highest land prices included:

• Bangplee Industrial Estate: 20-30 million baht per rai
• Wellgrow Industrial Estate: 14-17 million baht per rai
• Bangpoo Industrial Estate and Bangpoo Nuea Industrial Estate: 13.5-16 million baht per rai
• Amata City Chonburi Industrial Estate: 11-14 million baht per rai
• Asia Industrial Estate: 10-12.5 million baht per rai

A total of 17,796 rai of SILP is currently under construction, set to become operational in the future. Of this, 80% is located in the Eastern Economic Corridor, with the remaining 20% spread across central and other regions.