Industrial land sales and rents in Thailand have surged well past the full-year target for FY 2012, said the Industrial Estate Authority of Thailand (IEAT).
IEAT is looking forward to a good fiscal year 2013 on the back of strong land sales and rents in Thailand. The Authority said that with only one month left to FY 2012, sales of industrial land and rents have already exceeded the full-year target by a large margin.
Rentals and sales have amounted to 3,843 rai in the first 11 months of FY 2012, far outstripping the year's target of 2,500 rai. The amount sold so far represents a 4.4% increase year-on-year, added IEAT governor Verapong Chaiperm.
A total of 195 operators bought or rented the land sold, of which 3,806 rai belonged to industrial estates, with IEAT directly owning 37 rai. Thai industrialists accounted for the majority of the transactions - 40% - with Japanese operators taking up 30%; Chinese operators, 15%; American and Australian, 5% each; and South Korean, 3%.
The breakdown by business type is as follows: 73.3% (143 operations) in automotive; 20% (39 operations) in steel and other metals; and 1.5% (three operations) in rubber and plastic. There was also one operator in electronics and electrical appliances.
Galvanised by the strong results in FY 2012, the Authority has set the land sales and rentals target for FY 2013 at a minimum of 3,800 rai.
The next fiscal year will also see the addition of industrial estates for the plastic industry and aviation, added IEAT. It is also considering the establishment of more estates to cater to increased border trade expected to come from the Asean Economic Community, including in Chiang Khong district of Chiang Rai, Khon Kaen, Udon Thani and Nakhon Phanom.
During the current fiscal year, the Authority gave approval to ST Power Group to set up its Banbung Patana Industrial Estate on a 1,739 rai plot in Chon Buri province. The estate would cater for auto-parts, utilities and logistics, and agricultural products.
Expansion plans for three industrial estates totalling 482 rai were also approved, namely for the Eastern Seaboard Industrial Estate, the Amata Nakorn Industrial Estate and the Pinthong Industrial Estate.
Thailand's industrial property sector is gaining traction, with more projects applying for privileges, said the Board of Investment (BOI). In the first nine months of the year, 1,583 projects applied for investment promotion privileges, an increase of 21.6% from the same period last year.
Total investment also exceeded this year's target of THB 800 billion, amounting to THB 804 billion, nearly double that of the same period last year. September saw the highest amount of activity, with around THB 121.8 billion worth of projects applying for BOI privileges.
Foreign direct investment also increased 36% year-on-year during the first nine months of the year, comprising 1,057 projects out of the total applying for BOI privileges. Total combined investment increased to THB 433.37 billion, a 70% increase, added the Board.