According to a recent research report by Knight Frank Thailand, the prospects of the local logistics property market, encompassing warehousing and logistics infrastructure, are generally good. The market is expected to be more competitive in 2014, as several new developments will be completed in the Eastern Seaboard, Samut Prakarn and Chachoengsao — areas that benefit from convenient access to Bangkok, multiple industrial estates and Laemchabang port.
Since the global financial crisis of 2008, and despite a slight dip after the catastrophic floods of 2011, Thailand’s export – import volume indices have shown a strong recovery, as the level of trade increased. Exports make up about 70 percent of the nation’s GDP, making Thailand heavily reliant on warehousing and other logistics-related property.
In 2013, the number of containers that passed through Laemchabang increased to 6,000,369 TEUs, or by 2.2 percent from the previous year. However, such volumes tapered off during the second half of 2013, as the political situation heated up.
Nonetheless, in the fourth quarter of 2013, the total supply of warehousing space and logistics parks, including both ready-built and built-to-suit solutions, increased by 30.8 percent year-on-year, as new developers entered the market.
At the end of 2013, the overall occupancy rate was 81.2 percent, a 1.7 percent drop from the previous quarter, and a decrease of 9.7 percent from last year. However, net absorption remained positive, indicating strong demand for warehousing space, especially in Samut Prakarn and the Eastern Seaboard.
