Land sales in industrial estates are expected to remain strong in 2025, driven by the US import and foreign policies. (Photo: Industrial Estate Authority of Thailand)

Land sales in industrial estates are expected to remain robust in 2025, building on strong demand from last year, driven by changes in US import and foreign policies, according to property firm Cushman & Wakefield Thailand.

Surachet Kongcheep, head of research and consultancy, said these changes will have a significant impact on various industries, particularly businesses aiming to export to the US and manufacturers based in China.

"Since last year, we've observed an influx of investors from China, as well as investors and entrepreneurs from other countries with production bases in China moving into Thailand," he said.

Although Thailand may not be the top destination for these businesses, it remains a key beneficiary of expected US tariff policy changes, especially those targeting Chinese goods, said Mr Surachet.

The shift is largely driven by the relocation of production bases to Thailand, a trend expected to continue throughout 2025 and beyond, until the US revises its trade policies.

"While there has yet to be any concrete announcement regarding these policies, the direction seems clear," he said.

"An influx of investors and entrepreneurs focusing on export-oriented manufacturing has significantly stimulated demand for serviced industrial land plots [SILP], factory buildings, and ready-built warehouses."

Driven by robust demand, the new supply of SILP last year tallied 2,968 rai nationwide, bringing the total industrial estate land in Thailand to 219,388 rai, according to the consultancy.

As of year-end 2024, the vacancy rate of SILP decreased to 9.09% from 9.25% in 2023. It has remained below 10% since the second quarter of 2023.

The average selling price of land increased by 8.45%, rising to 7.7 million baht per rai from 7.1 million, noted Cushman & Wakefield.

China led the top five countries with strong demand for SILP, followed by Taiwan, the US, South Korea, and European nations that relocated their manufacturing bases from China.

The top five industries propelling demand were electric vehicles (EV), auto parts, electronics, imported goods, and EV batteries, said Mr Surachet.

The industrial estates with the highest land prices were Bangplee Industrial Estate at 20-30 million baht per rai, followed by Wellgrow Industrial Estate (14-17 million), Bangpoo Industrial Estate and Bangpoo Nuea Industrial Estate (13.5-16 million), Amata City Chonburi Industrial Estate (11-14 million) and Asia Industrial Estate (10-12.5 million).

A supply of SILP totalling 17,796 rai is under construction and awaiting future operations. The top five locations include provinces within the Eastern Economic Corridor, which account for 80%, followed by the central region (10%) and other areas (10%).

"This supply remains balanced with demand, as there is still land available for sale. Land prices are expected to gradually increase," he said.