Industrial land price growth is expected to moderate after last year's sharp increase, as nearly 10,000 rai of new supply is set to enter the market in the fourth quarter of 2026, easing upward pressure on prices.
Phongphan Phloiphet, director of logistics and industrial at property consultancy Cushman & Wakefield Thailand, said land prices in industrial estates are expected to remain largely stable after rising sharply over the past two years.
"We are entering a price maintenance period," he said. "Once the new supply of around 9,000 rai comes onto the market, asking prices are likely to ease from last year's peak."
According to the company's market research, 8,996 rai of serviced industrial land plots (SILPs) across five industrial estates developed by four companies are scheduled for completion in the fourth quarter of 2026.
Three projects are located in the Eastern Economic Corridor: Amata City Chonburi 2 in Ban Bueng district, Chon Buri (2,213 rai); Amata City Rayong 2 in Ban Khai district, Rayong (1,547 rai); and TFD Industrial Estate 2 in Bang Pakong district, Chachoengsao (1,240 rai).
The other two projects are Rojana Ayutthaya Phase 10 in Ayutthaya (2,296 rai) and Araya in Samut Prakan (1,700 rai).
A further 8,890 rai of SILPs is scheduled for completion in 2027. This includes 6,490 rai at WHA Eastern Seaboard Industrial Estate 5 in Rayong, slated for the first quarter, and 2,400 rai at WHA Saraburi Industrial Land 2 in Saraburi, scheduled for the fourth quarter.
In addition, Frasers Property Nong Suea Chang in Chon Buri is adding 2,400 rai of SILPs, although the completion date has yet to be announced.
Mr Phongphan said the average selling price of SILPs nationwide reached 8.4 million baht per rai in the second quarter of 2026, up 7% year-on-year.
In the first half of 2026, prices rose only 4% year-on-year after surging 10% in 2025 -- the strongest annual growth in recent years.
Prices rose 9.45% in 2022 and 6.72% in 2021, before slowing to 2.16% in 2023 and 2.82% in 2024.
"Only a limited amount of industrial land remains available for sale," he said.
"Strong demand from both new and expanding foreign manufacturers, as well as Thai investors, has absorbed much of the supply over the past 2-3 years."
Industrial estate expansion has been relatively modest, with total land increasing by only 8% since the end of 2021, Mr Phongphan said.
During the same period, demand for SILPs rose by around 18%, leaving 20,286 rai due for completion by the end of 2027.
LONG-TERM OUTLOOK
He said he expects industrial land demand and utilisation rates to continue rising, supporting further price increases over the longer term.
Mr Phongphan warned that some foreign investors entering Thailand were acquiring land for property development rather than industrial operations, particularly for projects intended to serve businesses from their own countries.
Some of these operators have already ceased operations and no longer hold the land, while others remain active or have passed regulatory scrutiny, he said.
"Thai authorities should continue monitoring these activities, while the public can also help report suspected irregularities, as enforcement by central agencies may not always be timely," Mr Phongphan said.
