The benefit to Thai real estate from Chinese industrial investment may be limited to land sales in industrial estates and other areas within the Eastern Economic Corridor (EEC), as Chinese investors often bring their own materials, labour and contractors.

Tayat Kanchanachitra, president of the Rayong Real Estate Association, said land transactions in Rayong have been bustling, driven by strong interest from Chinese investors in the industrial sector.

"They are setting up factories, but they are bringing in their own contractors, labour and construction materials, bypassing local suppliers -- except for concrete, which must be mixed on-site," he said.

Mr Tayat said Chinese factories located outside industrial estates also employ very few Thai workers. While nearby food stalls and convenience stores have seen a boost in sales due to an influx of foreign labour, the real estate sector has barely benefited, other than from initial land sales, he said.

"It's hard to say how much Thais truly benefit, but we are certainly missing out in some ways," said Mr Tayat.

He said Chinese contractors brought in to build factories in Rayong for Chinese investors may later take on other construction jobs, with many promoting their services on TikTok, potentially competing with Thai contractors.

"These groups quote extremely low rates, around 4,500 baht per square metre for roof and floor factory construction, while Thai contractors typically charge 12,000 baht per sq m," said Mr Tayat.

"How can Thai firms possibly compete?"

The residential market has also been affected, as some Chinese factory owners developed up to 10 condo buildings to serve as rental apartments for their workers.

If Chinese investors continue to develop rental condos, he said it could strain Rayong's residential market, where declining purchasing power and rising mortgage rejection rates have already shifted demand from home purchases to rentals.

Mr Tayat, also chief executive of Rayong-based developer Pinsiri Estate, said land within industrial estates in Rayong has surged in popularity over the past year, as prices remain lower than in Chon Buri.

He said activity has expanded beyond the popular areas of Map Ta Phut and Pluak Daeng to Ban Khai and Klaeng districts, where land prices are more affordable.

According to the Real Estate Information Center (REIC), Klaeng district recorded the highest year-on-year increase in vacant land prices among EEC provinces in the fourth quarter of 2024, soaring by 92.3%.

Bang Lamung in Chon Buri ranked second with a 50.6% rise, followed by Si Racha in Chon Buri at 47.6%, Plaeng Yao in Chachoengsao at 27.5%, and Phanat Nikhom in Chon Buri at 1.8%.

Phongphan Phloiphet, director of logistics and industrial at property consultancy Cushman & Wakefield Thailand, said the average EEC land price had doubled from 3-4 million baht per rai during the pandemic to 6-7 million baht per rai.

In 2024, industrial land transactions tallied 2,698 rai nationwide. Some 17,795 rai was in the pipeline for development into industrial estates, with average offering prices in those estates at 7.6 million baht per rai.

"The government should create conditions that encourage overseas investors to genuinely invest -- not just buy land and bring in their own contractors," said Mr Phongphan. "Otherwise, Thais will gain nothing."