According to the Bangkok Post, Amata Corporation, a leading industrial estate developer, plans to sell at least 3,000 rai (4.8 km²) of land this year (compared to 2,800 rai sold last year). These expectations are well-founded, as both the automotive industry and foreign investment continue to grow.
Chief Operating Officer Viboon Kromadit stated that land sales in the market are expected to increase by 10–20% this year.
“The strong growth and investment in Thailand’s automotive industry are also driving the development of supporting sectors, benefiting the country overall. Additionally, economic growth is supported by the fact that many Japanese manufacturers are relocating to Thailand due to high labor costs in their home country,” Mr. Viboon said at the Stock Exchange of Thailand on February 19.
Chinese companies are also moving to Thailand to diversify risks.
In 2012, Amata sold a record 2,800 rai (4.5 km²) of land within its industrial estates. Approximately half of the buyers were automotive companies and related manufacturers. The largest buyer was tire manufacturer Bridgestone, which purchased 514 rai (0.9 km²).
In 2012, the company’s revenue reached 6.17 billion baht, more than 50% higher than the previous year (4.06 billion baht), while net profit increased by 55% to 1.44 billion baht.
For this year, the company already has orders for land purchases worth 6–7 billion baht.
Mr. Viboon noted that Amata plans to invest 2 billion baht this year in infrastructure development across its industrial zones. A property fund of 1.8 billion baht will also be established, consisting of 108 completed factories generating annual income of 300–400 million baht.
Amata City and Amata Nakorn have land reserves of 3,000 and 10,000 rai (4.8 and 16 km² respectively) planned for sale over the next 3–4 years. About 2,000 rai (3.2 km²) are ready for sale this year.
“Indonesia is Amata’s main competitor in Southeast Asia, especially in the automotive sector, but it still lags behind Thailand in this area,” Mr. Viboon said. “At the same time, industrial growth in China, South Korea, and Russia continues steadily.”
He also added that Amata increased land prices by 5% compared to last year. Currently, land in Amata Nakorn (Chonburi) costs 7 million baht per rai (1,600 m²), while land in Amata City (Rayong) is priced at 2.8 million baht per rai.
The company has decided to shift its focus from long-term land leasing to land sales. The main reason is that leasing requires managing many additional factors (such as lease terms), which complicates maintaining competitiveness.