THAILAND REMAINS the prime destination for direct investment as its central location in the region affords good connectivity to Cambodia, Laos, Myanmar and Malaysia, according to Knight Frank Thailand
Industrial land sales surged 55.9 per cent to 3,549 rai, reflecting recovery from the previous year, when sales fell due to domestic political tension.
From the end of 2013 until mid-2014, the Board of Investment could not authorise any large-capital projects, which dented the volume of transactions for industrial land in that year.
Foreign investors were also becoming cautious due to the political uncertainty.
Marcus Burtenshaw, executive director and head of commercial agency, said yesterday that the company expects growth to continue this year specifically from investment in the electronics, auto parts, food and renewable energy industries. While Japanese investment remains subdued, increased activity is being seen from European and increasingly, Chinese firms.
Industrial land increased in price by up to 4.4 per cent from last year. The northern zone recorded the fastest growth last year of 4.4 per cent, followed by the Eastern Seaboard with 3.3 per cent.
From 2012-13, industrial land in the Suvarnabhumi-Bangpakong and Eastern Seaboard regions increased by 10 per cent since they were unaffected by the flood.
They also became highly sought after by manufacturers and developers. And some industrial estates hiked their asking prices by up to 25 per cent. The total supply of ready-built factories rose 6.4 per cent to 2,745,232m2 last year.
From 2012-13, supply expanded massively in locations that were not affected by the 2011 floods, such as the Eastern Seaboard and Suvarnabhumi-Bangpakong.