Eastern Economic Corridor Demand Fuels Surge in Thailand’s Serviced Industrial Land Market in H1 2024

The first half of 2024 saw a broad upturn in the serviced industrial land market, driven largely by robust demand in Thailand’s Eastern Economic Corridor (EEC). New supply, sales activity, and pricing all climbed, reflecting a market that is responding to macroeconomic momentum, strategic location advantages, and targeted government incentives. Market observers note that this period underscored Thailand’s rising appeal as a hub for high-value, technology-driven industries, with sustained interest from both domestic and international investors. While supply modestly increased, demand outpaced it in key corridors, sustaining a favorable market dynamic that points to continued activity in the near term.

Market overview and performance in H1 2024

Market momentum in the first half of 2024 was characterized by a coordinated ascent across several indicators. The total volume of serviced industrial land transacted—whether sold or leased—reached 8,063 rai, marking a 53% increase from the second half of 2023. This surge illustrates a sharp improvement in market appetite and investor confidence during the period. Simultaneously, new supply rose to 886 rai, a figure that, while positive, represents only a modest expansion against the existing stock and underscores the tight nature of the market.

Across the nation, the total stock of serviced industrial land reached 181,280 rai, up by a slender 0.5% on the prior period. This limited supply growth, juxtaposed with the significant rise in transactions, indicates a market leaning toward absorption rather than a rapid expansion of available land. The accelerated activity contributed to a higher cumulative sales rate, which rose to 86.9% in H1 2024, a 3.9% increase from the preceding period. The numbers collectively depict a period of strong and sustained demand, even as new land supply grew only marginally.

In assessing the geographic drivers, the Eastern Economic Corridor emerged as the principal force behind the market’s expansion. Transactions in the EEC amounted to 4,869 rai, accounting for 60% of nationwide land transactions during the half-year. The concentration of deals in the EEC underscores the corridor’s strategic allure, a combination of its investment-incentive framework, infrastructural readiness, and the presence of mature industrial ecosystems designed to attract technology-driven manufacturing and related activities. The intensified activity in the EEC is paired with ongoing government incentives that are perceived to support further growth, reinforcing the sentiment that the corridor will remain a cornerstone of the market going forward.

Regional performance and notable markets outside the EEC

Even as the EEC led the charge, other regions registered strong transactional momentum. Central regions and eastern provinces outside the EEC posted meaningful activity. Prachin Buri and Sa Kaeo, along with Chanthaburi and Trat, displayed notable levels of land sold or leased, with 1,297 rai and 1,274 rai transacted in these areas, respectively. The distribution of activity across these provinces suggests that while the EEC is the focal point of growth, investors are also pursuing opportunities along broader regional corridors where infrastructure, accessibility, and land availability align with manufacturing and logistics requirements.

Price dynamics and valuation

Investors observed a nationwide uptick in asking prices for serviced industrial land, reflecting tightening market conditions and the premium that buyers place on high-value sites with superior logistics attributes. The average asking price rose by 1.6% to 6.2 million baht per rai, up from 6.0 million baht per rai in the second half of 2023. Within this national picture, Greater Bangkok commanded the highest average asking price, reaching 11.1 million baht per rai and increasing by 2.2% from the prior period. The pinnacle price encountered in the market was a record-high 16 million baht per rai at the Gemopolis Industrial Estate in Samut Prakan, illustrating the premium that top-tier sites command given proximity to urban centers and established logistics networks.

In the EEC, the average asking price stood at 6.7 million baht per rai, up 1.2% year over year, indicating that even in a high-demand region, price growth remained manageable within the corridor’s market dynamics. The EEC also exhibited the broadest price spectrum, with asking prices ranging from 3.6 million to 12 million baht per rai. This wide band reflects the diversity of assets available within the EEC—from more industrially dense sites closer to major ports and logistics hubs to marginally less expensive parcels in peripheral areas that still benefit from corridor accessibility and incentives.

Prices varied significantly by location and infrastructure access. Locations along Motorway Route 7, which connects Bangkok to Ban Chang, were associated with higher price points due to improved accessibility and reduced logistics times. Proximity to major ports—Laem Chabang and Map Ta Phut—also correlated with stronger price levels, as enhanced infrastructure and connectivity translate into greater operational efficiency for tenants and buyers. In contrast, the Northeast region exhibited the lowest average asking prices, starting at 2.2 million baht per rai, with the average price remaining relatively flat at 2.9 million baht per rai compared with the second half of 2023. This regional disparity highlights the varying developmental stages, infrastructure access, and demand drivers across the country, while also indicating potential opportunities for future growth in less developed corridors as investment and policy support expand.

Investment promotion and foreign direct investment context

Government-supported investment activity continued to shape market expectations. According to the Board of Investment (BOI), total investment promotion approvals in the first half of 2024 rose by 37% year-on-year, reaching 1,451 projects. Investment value also climbed by 27%, totaling 476 billion baht. Foreign direct investment (FDI) played a central role in this growth, accounting for 63% of the total number of projects and 76% of the investment value. This pattern demonstrates a sustained reliance on foreign capital to advance Thailand’s industrial and technology-oriented manufacturing ambitions, particularly in sectors that benefit from advanced supply chains and global market access.

China led the field in project count and investment value within the BOI approvals, with 329 projects totaling 101.7 billion baht. Singapore and Japan followed in the ranking, reflecting regional and global investor interest in Thailand’s market opportunities. The electrical appliances and electronics sector attracted the most investment among all sectors, with 170 projects valued at 139 billion baht. This sectoral concentration underscores Thailand’s embedded role in electronics manufacturing ecosystems and aligns with broader regional trends toward high-value, technology-intensive production.

Market drivers, infrastructure, and policy implications

The observed market dynamics in H1 2024 point to several intertwined drivers. The EEC’s dominance as the leading market segment is reinforced by strategic incentives aimed at attracting high-value industries, including technology and advanced manufacturing. The combination of favorable policy terms, enhanced infrastructure, and proximity to global supply chains makes the EEC a magnet for investment and a benchmark for market pricing and land valuation. The distribution of land transactions across Prachin Buri, Sa Kaeo, Chanthaburi, Trat, and other eastern provinces indicates a broader regional strategy by developers and buyers to leverage corridor connectivity and logistics networks while diversifying geographic exposure.

Infrastructure developments—particularly along high-capacity corridors such as Route 7—and the presence of major ports including Laem Chabang and Map Ta Phut—play a pivotal role in shaping land values and demand dynamics. Sites near these logistical nodes offer reduced transportation costs, shorter lead times, and improved reliability for supply chains, which translates into higher price points and stronger absorption rates. The Gemopolis Industrial Estate’s exceptional price point serves as a reference for premium land values in the sector, illustrating how location-specific attributes can drive top-tier valuations.

From a policy perspective, the BOI’s sizable approvals and the outsized role of FDI emphasize the importance of creating a favorable investment climate that can attract international capital. The sectoral emphasis on electrical appliances and electronics suggests that Thailand’s market positioning is aligned with global electronics value chains, reinforcing the expectation that demand in this space will shape not only land transactions but also broader manufacturing activity and employment growth. The combination of domestic appetite and international investment signals a policy environment that remains supportive of continued growth, though it also implies sensitivity to external economic conditions, supply chain volatility, and exchange rate fluctuations that could influence investment decisions.

Implications for regional dynamics and market outlook

Looking ahead, the market dynamics from the first half of 2024 suggest that demand will likely remain robust, particularly in the EEC, where strategic assets, incentives, and logistics advantages converge to attract high-value manufacturing and technology-driven operations. The modest expansion in land supply relative to demand growth implies continued scarcity within high-demand segments, which should sustain favorable absorption rates and potentially support further price stabilization or incremental price increases for premier sites.

The regional performance outside the EEC indicates that demand diversification exists, with several eastern and central provinces contributing meaningfully to transaction volumes. This diversification may help mitigate concentration risk and provide opportunities for developers and tenants to optimize site selection based on proximity to specific value chains, workforce pools, or port access. However, price differentials across regions will persist, shaped by infrastructure access, market maturity, and the presence of supporting ecosystems.

The BOI-driven investment activity, especially in electronics and related sectors, reinforces Thailand’s broader growth narrative around high-value manufacturing and technology-enabled industries. As global demand patterns evolve and supply chain configurations adjust, Thailand’s combination of strategic location, policy incentives, and infrastructure readiness positions the country as a competitive destination for investment in advanced manufacturing and related services. The market’s resilience will depend on maintaining a supportive policy framework, sustaining infrastructure development, and ensuring that land supply can respond to rising demand without compromising project delivery timelines or logistics efficiency.

Data interpretation, methodology, and caveats

The figures referenced come from Knight Frank Thailand’s market assessments for serviced industrial land, reflecting land transactions (sold or leased), newly available supply, and price trends. The unit of measure used throughout is the rai, a traditional Thai land area unit. The data capture in H1 2024 reflects the market’s mid-year snapshot, and the reported changes are year-on-year or period-over-period comparisons where indicated. The term “serviced industrial land” refers to parcels prepared for industrial development with essential infrastructure and services in place or readily accessible, which often includes access roads, utilities, drainage, and other prerequisites for immediate development.

The analysis relies on a combination of transactional data, market surveys, and price reporting across major regions, with particular emphasis on the EEC due to its outsized impact on overall market performance. While the numbers provide a clear picture of market momentum, variations in parcel size, location, accessibility, and infrastructure proximity can create wide ranges in asking prices within regional submarkets. Market participants should interpret price data with consideration for site-specific attributes and the broader macroeconomic environment.

The BOI data cited reflect approved investment projects and their associated investment values, highlighting the relative share of foreign investment and sectoral focus. These figures illustrate policy-driven momentum rather than the day-to-day movements of land transactions, though both are interrelated as investor confidence and fiscal incentives influence land demand and project financing.

Sectoral impact and value chain considerations

The electronics and electrical appliances sector’s prominence within BOI-approved investments signals a continued emphasis on Thailand’s role in high-value manufacturing ecosystems. This sector’s scale—170 projects with a combined value of 139 billion baht—points to a substantial pipeline of manufacturing activity that could translate into sustained demand for serviced industrial land in the near to mid-term. The concentration of activity in this sector is consistent with broader global trends toward electronics, consumer electronics, and related components where Thailand hosts existing industrial clusters and supplier networks.

Land buyers and developers may prioritize sites with the necessary electrical and utility infrastructure, proximity to skilled labor pools, and access to global logistics routes to support production and distribution. The interplay between policy incentives, regional infrastructure upgrades, and the growth of high-tech manufacturing ecosystems will likely shape both transaction volumes and price dynamics across the market.

Practical implications for investors and developers

Investors and developers can draw several practical implications from the H1 2024 market narrative. First, the EEC remains the focal point for high-value activity, suggesting that strategic acquisitions and lease agreements in this corridor are likely to yield the strongest near-term rate of return and project viability. Second, given the tight supply environment, timing and asset selection will be crucial for maximizing absorption and minimizing holding costs. Third, the price landscape indicates a premium for premier sites in Greater Bangkok and the EEC, so buyers may need to balance location advantages with budget constraints and project requirements.

Market participants should also monitor infrastructure developments that can further enhance asset desirability, such as improvements to port access, road connectivity, and logistics hubs. Finally, the continued prominence of FDI, especially from China, Singapore, and Japan, implies that collaborations, joint ventures, and supply chain alignments with international partners will continue to shape demand patterns in servicing industrial land and related property solutions.

Conclusion

The first half of 2024 marked a pivotal period for Thailand’s serviced industrial land market, characterized by strong demand, targeted supply growth, and notable price movements. The Eastern Economic Corridor emerged as the principal engine of activity, drawing a majority of land transactions and reinforcing Thailand’s status as a hub for technology-driven manufacturing. Although total new supply rose only modestly, the rapid absorption of land and the upward pressure on prices—particularly in premier locations like Greater Bangkok and the EEC—reflects a market positioned for continued momentum, supported by incentives and robust investment activity.

Equally important is the broader regional performance, which shows healthy engagement in central and eastern provinces beyond the EEC, underscoring a diversified demand runway. Price dispersion across regions highlights the enduring premium on well-connected sites while signaling opportunities in less mature corridors as infrastructure and policy support evolve. The Board of Investment’s strong first-half performance, driven by substantial foreign investment and a concentration in electronics and electrical appliances, underscores the strategic alignment between policy, industry sectors, and regional development goals.

Overall, the market trajectory in H1 2024 points to a continued, measured expansion in serviced industrial land, underpinned by a combination of strategic location advantages, corridor-based infrastructure improvements, and a supportive investment climate. As Thailand’s industrial landscape continues to mature with a focus on high-value manufacturing and technology-enabled industries, demand dynamics are expected to remain resilient, with selective pricing and supply constraints shaping market outcomes in the months ahead.