Thailand Industrial MarketView Q3 2018
09 Jan 2019
Rising Demand for Logistics Property but Manufacturers’ Expansion Still Limited
In Q3 2018, exports to all major markets grew by 3.3% Y-o-Y. The Manufacturing Production Index (MPI) increased by 1% Y-o-Y. The Thai automotive industry saw an expansion in total car production of 3.9% Y-o-Y. The figures given by the BOT (Bank of Thailand) for FDI in the manufacturing sector in the first eight months of 2018 were more than three times higher than the FDI in the same period of 2017 but still have not lead to a significantly increase in demand for SILPs. The low level SILPs sales and demand for RBFs show that manufacturers are upgrading their machinery in their existing facilities instead of expanding.
There was a drop in the demand for Serviced Industrial Land Plots (SILPs) in Q3 2018, as SILP sales by major developers, excluding Rojana, decreased by 62% Y-o-Y and 44.4% Q-o-Q, with a total of 104 rai (41 acres or 17 hectares) sold. The total SILP sales in the first nine months of 2018 were 410 rai (162 acres or 66 hectares), decreasing 60% Y-o-Y compared to 1,031 rai (408 acres or 165 hectares) in the same period of 2017. There was no new supply in this quarter, which kept the total supply at approximately 157,000 rai (62,000 acres or 25,100 hectares).
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