Phongphan Phloiphet, Head of Logistics and Industrial at Cushman & Wakefield Thailand, recently shared insights in an interview with Positioningmag.
According to data from the Board of Investment (BOI), during the first six months of 2025 (January–June), foreign investment promotion approvals totaled 1,063 projects with a combined value of THB 629.6 billion, representing a 75% year-on-year increase.
The top three foreign investor nationalities were Singapore, Hong Kong, and China, while the industries attracting the most investment interest included:
- Digital
- Electrical and Electronics
- Machinery and Automotive
The surge in foreign investment has directly boosted demand for industrial properties, particularly ready-built factories.
As of the third quarter of 2025, the total supply reached 3.42 million square meters, with a vacancy rate of just 11.71%, while industrial land prices have climbed by 20–30% amid robust manufacturing growth.
“Foreign demand has risen sharply, particularly from Taiwan and Hong Kong, since August 2025. Each investor typically seeks ready-built factory spaces ranging from 4,000 to 20,000 square meters, mostly for EV-related supporting industries.”
These factors have driven industrial land prices upward, with the average price reaching THB 8.04 million per rai, up 2% from the previous quarter.
“The sharpest increase was recorded in the Pluak Daeng–Rayong zone, where prices surged 20–30%, rising from THB 5.5 million to THB 7.5 million per rai.”
In other key industrial locations, land prices currently stand at approximately THB 6 million per rai in Ayutthaya, THB 12–14 million per rai in Samut Prakan, Chachoengsao, and Northern Chonburi, and THB 5.5–7.5 million per rai in Southern Chonburi–Rayong.
Warehouse Oversupply: Vacancy Rates Reach 30–40% in Some Areas
In contrast to the booming factory rental market, Thailand’s ready-built warehouse sector is facing a prolonged oversupply. During the COVID-19 period around 2020, a large number of warehouse projects were rapidly developed to accommodate the surge in e-commerce demand. At that time, major e-marketplace platforms relied heavily on third-party logistics (3PL) providers for storage and delivery operations.
However, by 2022, intense competition forced e-marketplaces to cut operating costs and develop their own warehouses instead.
This shift caused warehouse demand to plummet by hundreds of thousands of square meters, leading to vacancy rates as high as 30–40% in some areas, particularly Samut Prakan and Chonburi. While e-marketplaces have shifted to in-house warehouse operations, many of their third-party logistics partners have vanished from the market.
“The warehouse market remains oversupplied and has yet to recover,” said Phongphan. Rental rates have been flat for nearly a decade, and any increase has been minimal—around 2–3% at most.”
