Thailand industrial market stays weak

The industrial property market in Thailand remains weak, with sales of land plots falling.

Around 650 Rai (260 acres or 100 hectares) of serviced industrial land plots were sold in the estates and parks surveyed by CBRE in Q1 2015, 15 per cent down  from the prevous quarter, but up more than 300 per cent compared to the same period in 2014.

As of Q1 2015, the vacancy rate of Ready Built Factories (RBFs) was 36 per cent, increasing 12 percentage points compared to Q1 2014. Total occupied space of RBFs in this quarter decreased by 3,000 sq.m. Discussions with developers show that rents for RBFs remained unchanged from Q4 2014 despite high vacancy rates.