1、Knightfrank.co.th/ResearchCommercial ResearchThailand ManufacturingPropertyMarket Overview 20222THAILAND MANUFACTURING PROPERTY MARKET OVERVIEW 2022THE TOTAL SUPPLY OF SILP IN THAILAND INCREASED BY 3,157 RAI TO 174,481 RAI.1LAND SOLD ROSE BY 26%FROM THE PREVIOUS YEAR,REACHING A 5-YEAR HIGH OF 4,041

2、RAI,63%OF WHICH WAS IN THE EEC.2THE CUMULATIVE SALES RATE GREW BY 0.7%PTS TO 81%,WHILE THE AVERAGE ASKING PRICE REMAINED STEADY AT 5.7 BAHT PER RAI.3 According to data released by the Thailand Board of Investment(BOI)on January 13th,pledges by local and foreign investors in the country saw a 39%incr

3、ease in the previous year.Investment applications reached a total of Bt664.6bn(approximately$20bn),with a significant portion of foreign direct investment(FDI)directed towards key sectors such as electronics,the electric vehicle supply chain,and data centers.The majority of the increase in investmen

4、t was concentrated in the Eastern Economic Corridor,with notable contributions from global leaders such as BYD Auto,Foxconn,and Amazon Web Services.Chinese investors were the most active,leading the FDI rankings with 158 projects worth a combined Bt77.4bn.Japan followed closely with 293 projects wor

5、th Bt50.8bn,followed by the United States(33 projects worth around$1.52bn)and Taiwan(68 projects worth$1.37bn).As we look towards 2023 we expect investment flows in the electric vehicle and data center categories to continue to grow,although investment growth may be tempered by global economic headw

6、inds stemming from ongoing geopolitical tensions,amidst growing concerns regarding cost-push inflation and pressure on interest rates.“H I G HL I GHTSMARCUS BURTENSHAWExecutive Director,Head of Occupier Strategy&Solutions3THAILAND MANUFACTURING PROPERTY MARKET OVERVIEW 2022MA R KET O VERVIEW S E R V

7、I C ED I NDU STRIAL LAN D P LOT MA R K ET IN DICATO RSIn 2022,the Thai economy expanded by 2.6%,up from 1.5%in 2021.Meanwhile,the GDP for 2023 was revised down to 3.2%due to the continued severe global headwinds,according to NESDC.Exports of goods and services expanded by 21%,led by the export growt

8、h in gem,jewellery,electronics,and electrical appliances.However,the imports of goods and services grew faster by 25%during the same period,mainly driven by crude oils,petroleum and natural gas,and electronic components.For the internal sectors,private consumption improved by 6.3%,supported by the c

9、ountrys full reopening,tourist arrivals and robust labour market.Fixed capital investment declined to 2.3%in 2022 from 3.4%in 2021,attributed to the contraction of public investment.Government consumption contracted slightly by-0.2%in 2022 from the expansion of 3.2%in 2021 due to reduced purchase or

10、ders of goods and services and social transfer in kind.Headline Inflation rose by 6.2%in 2022,much higher than the Bank of Thailands target of 2%,because of the elevated food and energy prices,which rose by 10%from 2021.The rise in prices,particularly natural gas,diesel and imported coal,profoundly

11、impact electricity costs as they account for more than 70%of power generation.According to the recent Energy Regulatory Commission(ERC)announcement,the household sector will experience no change in electricity bills.However,the non-household sector,comprising businesses of all sizes,will face a rate

12、 hike of 13%to 5.33 baht per unit in the first four months of 2023.Thailands manufacturing productivity index declined to 94 in December 2022 from 103 at year-end 2021 due to the economic slowdown in the vast majority of major trading partners and the relentless war in Ukraine.Overall,the lower-leve

13、l production in data storage devices,chemicals products and construction materials has been a drag on the MPI.Meanwhile,sub-components,such as refined petroleum and food manufacturing,demonstrated healthy growth rates during the same period.According to BOI,the number of foreign and local applicatio

14、ns for investment promotion approved in 2022 remained steady at 1,554 projects,while the investment value increased by 21%to 619 billion Baht.The largest contributor was the 4THAILAND MANUFACTURING PROPERTY MARKET OVERVIEW 2022investment in automotive and parts,particularly electric vehicles,tires a

15、nd batteries,which increased by 336%to 105 billion in 2022.The significant increase in EV-related investment was attributed primarily to government tax subsidy programmes and the 3030 roadmap,which states that by 2030,30%of all vehicles manufactured in the country will be zero-emission vehicles(ZEV)

16、.Other sectors that have seen a significant increase in investment value include the digital industry,agriculture and food processing,growing by 268%and 86%,respectively.Source:NESDCF1|THAILAND GOODS&SERVICES BALANCE THAI BAHT(MILLIONS)Source:Office of Industrial EconomicsF2|THAILAND MANUFACTURING P

17、RODUCTIVITY INDEX (MPI SEASONALLY ADJUSTED)5THAILAND MANUFACTURING PROPERTY MARKET OVERVIEW 2022Thailand Factory activities slowed to a six-year low.The number of new factory operations and expansion in 2022 was tallied at 2,195,down by-16.1%from the previous years.Meanwhile,the number of factories

18、that ceased operations increased significantly,up by 43.0%to 997.Source:Department of Industrial WorksF4|THAILAND FACTORY OPERATIONS NUMBER OF FACTORIESSource:Thailand Board of InvestmentF3|THAILAND FOREIGN DIRECT INVESTMENT(FDI)APPROVED BY THE BOI THAI BAHT(MILLIONS)(MPI SEASONALLY ADJUSTED)6THAILA

19、ND MANUFACTURING PROPERTY MARKET OVERVIEW 2022SUPPL Y DISTRIBU TIO NThree new projects were ready for sale or lease in 2022,including Rojana Nongyai,Smart Park and S Ang Thong.The total amount of serviced industrial land plots(SILP),land made available for sale or lease in industrial estates,zones,a

20、nd parks,increased by 1.8%or 3,157 rai to a total of 174,481 rai.SILP in Thailand remains heavily con-centrated on the Eastern Seaboard with a market share of 62%.Rayong tops the list with a 63%share of the total Eastern Seaboards SILP area,followed by Chonburi(30%)and Chachoengsao(7%),respectively.

21、These provinces are well-established centres for manufacturing,particularly in the automotive,electronics and petrochemicals.The region benefits from well-developed infrastructure,a highly skilled labour force,economic policies and proximity to Laem-Chabang port,the most crucial port in Thailand tha

22、t constitutes nearly 60%of the countrys import and export goods.In 2022,supply in the Eastern Seaboard grew by 2.0%Y-o-Y to reach 107,824 rai from the official launch of two new industrial estates-Rojana Nongyai and Smart Park,which together provided an additional supply of 2,130 rai.The Central Reg

23、ion,consisting of Ayut-thaya,Pathum Thani and Saraburi,has the second largest market share,accounting for 16%of the total SILP supply or 26,200 rai.The new industrial estate,S Ang Thong,added around 1,000 rai or 3.8%growth Y-o-Y to the region.Bangkok Metropolitan Region came in third place at 12,652

24、 rai,with no change in the total SILP area from the previous year,as was the case elsewhere in Thailand.SER V I C ED IN DU STRIAL L A ND P LO TS(SILP)Source:Knight Frank(Thailand)Occupier Strategy&SolutionsF5|THAILAND SERVICED INDUSTRIAL LAND PLOTS AVAILABLE FOR SALE/LEASE RAI7THAILAND MANUFACTURING

25、 PROPERTY MARKET OVERVIEW 2022Source:Knight Frank(Thailand)Occupier Strategy&SolutionsT1|THAILAND SERVICED INDUSTRIAL LAND PLOTS DISTRIBUTION BY REGION RAISource:Knight Frank(Thailand)Occupier Strategy&SolutionsT2|THAILAND SERVICED INDUSTRIAL LAND PLOTS FOR FUTURE SUPPLY RAISource:Knight Frank(Thail

26、and)Occupier Strategy&SolutionsF6|THAILAND SERVICED INDUSTRIAL LAND PLOTS DISTRIBUTION BY REGION 8THAILAND MANUFACTURING PROPERTY MARKET OVERVIEW 2022Source:Knight Frank(Thailand)Occupier Strategy&SolutionsF7|THAILAND SERVICED INDUSTRIAL LAND PLOTS SOLD/LEASED BY THE REGION RAIAccording to the IEAT

27、report,demand for SILP improved as 4,041 rai was sold or leased in 2022,increasing by 26%from the previous year.This years transactions also exceeded the 5-year average of 2,602 rai of industrial land transacted annually.As expected,the Eastern Seaboard remained the most active sub-market,with 2,564

28、 rai sold or leased,representing 63%of the total.The second-most active location D E MAN DSource:Knight Frank(Thailand)Occupier Strategy&SolutionsT3|THAILAND SERVICED INDUSTRIAL LAND PLOTS CUMULATIVE SALES RATES BY REGIONbelongs to the central region,with 589 rai transacted,dropping from the peak of

29、 859 in 2021.Elsewhere,888 rai was sold or leased.The market cumulative sales rate rose by 0.7%to 81%as new supply was exceeded by sale and lease transactions.The Bangkok metropolitan region,Eastern Seaboard,continued to expand by 2.0%and 0.7%Y-o-Y,respectively.In turn,the cumulative sales rate for

30、Central region declined by-1.2%to 88%,the 8-year low figure.The cumulative sales rates in other areas fluctuated in the low-single-digit percentage,except in the South,which witnessed a marked improvement of 7.5%pts.Y-o-Y to 71%supported by the substantial incentive programmes from IEAT this year.9T

31、HAILAND MANUFACTURING PROPERTY MARKET OVERVIEW 2022The market rate in 2022 climbed 0.6%to 5.7 million baht per rai.This years price growth was the lowest in the last decade,in which prices generally increased by 4%per annum.Among the three major manufacturing regions,the central part witnessed the h

32、ighest rise in price by 5%,while the Bangkok metropolitan region and eastern seaboard prices fell by-5%and-1%,respectively.The asking price spread in the Eastern seaboard is still widest across the markets,starting from 2.5 million baht up to 12.5 million baht,indicating the variation in geographica

33、l and logistical factors of SILP available in Thailands largest submarket.A SKI N G PRICESSource:Knight Frank(Thailand)Occupier Strategy&SolutionsF8|THAILAND SERVICED INDUSTRIAL LAND PLOTS AVERAGE ASKING PRICE BAHT PER RAISource:Knight Frank(Thailand)Occupier Strategy&SolutionsT4|THAILAND SERVICED I

34、NDUSTRIAL LAND PLOTS WITH AVERAGE ASKING PRICE BY REGION BAHT PER RAI(MILLION)10THAILAND MANUFACTURING PROPERTY MARKET OVERVIEW 2022Source:Knight Frank(Thailand)Occupier Strategy&SolutionsF9|THAILAND SERVICED INDUSTRIAL LAND PLOTS AVERAGE ASKING PRICE SPREAD BAHT PER RAIThe Thai manufacturing proper

35、ty market experienced a slower growth rate in 2022 due to several global headwinds.Relentless price pressures have prompted policymakers in major countries to adopt more restrictive policies,resulting in a reduction in global demand for investment and spending.The rising costs of production,primaril

36、y from imported materials,fuels,and electricity,also have a negative impact on manufacturing profitability if they cannot be passed on to consumers.Over the past few years,the global supply chain has been hit by numerous shocks,such as the COVID-19 pandemic,factory shutdowns in China and geopolitica

37、l conflicts that have erupted around the world.One specific example of the global supply chain disruption is the chip shortage,which has been exacerbated by the war between Russia and Ukraine,as both countries are significant exporters of neon and palladium,essential materials for chipmaking.Chip pr

38、oducers have prioritized tech companies,the largest share of their revenue,leading to shortages in other industries,notably the automotive industry.R EV I EW&O U TLO O KThe lack of chips caused several car manufacturers to delay production and handover dates.Thailand,the worlds 10th largest automoti

39、ve producer,saw its motor vehicle production index fall by-13.5 percentage points for the first nine months of 2022,compared to the same period of 2019.This decline is greater than the overall production index,which dropped by-3.8 percentage points,highlighting the particularly severe impact of the

40、chip shortage on Thailands automotive industry.Another trend we have noticed is multi-national companies looking for additional manufacturing bases out of China.The move towards diversification,driven by concerns about supply chain resilience,rising labour costs,trade restrictions,and political issu

41、es,has had a positive effect on nearby regions such as Southeast Asia.However,Thailand may not see as much benefit from FDI inflows compared to neighbouring countries like Vietnam and Indonesia,which have more competitive wages and larger domestic markets.The challenges confronting Thailands manufac

42、turing sector were reflected in negative indicators such as the marginal SILP price growth,a larger trade deficit,a decrease in the manufacturing production index and the lowest level of new factory registration in the past six years.Regarding the macro outlook of Thailand,the World Bank and IMF pre

43、dicted that the Thai Economy will grow by 3.6 3.7%in 2023,with the countrys full reopening,tourism upbeat and private consumption acting as tailwinds.However,the recovery is expected to be uneven across different sectors.The manufacturing sector will still face challenges from the economic slowdown

44、in developed markets such as the US,EU and Japan.In addition,the appreciation of the Thai Baht by more than 10%in the last quarter of 2022,will have a negative impact on the manufacturing sector that is heavily reliant on exports.Other factors,such as geopolitical tensions in different regions and l

45、ingering inflation,will also continue to weigh on the industrial outlook of Thailand.11THAILAND MANUFACTURING PROPERTY MARKET OVERVIEW 2022Serviced Industrial Land Plots Land made available for sale/lease in industrial estates,zones and industrial parksBangkok Metropolitan Region Includes Bangkok,Sa

46、mut Prakan,Samut SakhonGL O SSARYRECENT MARKET-LEADING RESEARCH PUBLICATIONSKnight Frank Thailand Research provides strategic advice,consultancy services and forecasting to a wide range of clients worldwide including developers,investors,funding organisations,corporate institutions and the public se

47、ctor.All our clients recognise the need for expert independent advice customised to their specific needs.Important Notice:Knight Frank Thailand 2023.This report is published for general information only and not to be relied upon in any way.Although high standards have been used in the preparation of

48、 the information,analysis,views and projections presented in this report,no responsibility or liability whatsoever can be accepted by Knight Frank Thailand for any loss or damage resultant from any use of,reliance on or reference to the contents of this document.As a general report,this material doe

49、s not necessarily represent the view of Knight Frank Thailand in relation to particular properties or projects.Reproduction of this report in whole or in part is not allowed without prior written approval of Knight Frank Thailand to the form and content within which it appears.Our registered office

50、is 33/4,The 9th Towers,Grand Rama 9,Tower A,31st Fl.,Unit No.TNA 01-04 Rama 9 Road,Huaykwang District,Bangkok 10310 Thailand.Knight Frank Thailand Research,Reports are available atknightfrank.co.th/ResearchBangkok Condominium Market Overview Q2 2022Bangkok Luxury Hotel Market Overview 1H 2022Bangkok

51、 Luxury House Market Overview 1H 2022Super Prime&Prime Condominium Market Overview 1H 2022Thailand Logistics Property Market Overview H1 2022Eastern Seaboard(EEC)Includes Chachoengsao,Chonburi,RayongCentral Includes Ayutthaya,Pathum Thani,SaraburiWest Includes Ratchaburi,Petchaburi,Prachuap Khiri Kh

52、an South Includes Songkhla,PattaniNortheast includes Nong Khai,Nakhon Ratchasima North Includes Lamphun,PichitWe like questions,if youve got one about our research,or would like some property advice,we would love to hear from you.MARCUS BURTENSHAW Executive Director,Head of Occupier Strategy&Solutions+66(0)2 643 8223 Ext 104 PHANOM KANJANATHIEMTHAOChairman+66(0)2643 8223 Ext 124 NATTHA KAHAPANA Managing Director+66(0)2643 8223 Ext 300