Why Factories for Sale in Thailand are Turning Investors’ Heads in Post-pandemic Thailand

Many property investors focus their attention on residential and commercial properties while overlooking the benefits of investing in industrial properties such as factories for sale and warehouses for sale in Thailand. From an investment perspective this is regrettable. The manufacturing base of western countries may have dwindled in recent decades, but in Thailand the sector goes from strength to strength, with output increasing by around $30 billion in the four years up until COVID-19 struck. With a bounce back expected in the next couple of years after a pandemic-related lull, the factory for sale category is an attractive one for all smart investors.

The following article explains some of the different factory types and popular factory for sale locations in Thailand, and can hopefully be a guide for anyone thinking about buying a factory here to lease out as an investment. Keep in mind that the factory for sale category mostly focuses on pre-existing factory premises, so you’ll sometimes see them referred to as “second hand factory” in Thai real estate contexts.

Factory for Sale in Industrial Estate 

There are a number of things to consider when deciding on a factory’s location. These can include things like access to raw materials, markets, labor, transport, capital, as well as government incentives. As of 2022, Thailand has over 60 industrial estates. These industrial estates are areas that are specifically planned for the purpose of industrial development, and that means factories will have access to essential infrastructure such as efficient transport links, large-volume water supply, ports, gas lines, industrial-level electrical supply, and high-end communications cables.

Many of the factories for sale in Thailand are situated in industrial estates and particularly on the eastern seaboard. We will now take a look at three of these areas.

1) Factory for sale in Rayong

Rayong is located on the eastern seaboard of Thailand, a little over two hours’ drive (180 km) from Bangkok. Apart from having a number of beautiful beaches and world class tourist resorts, it is also home to a large number of industrial estates. Factories for sale in these estates tend to be fairly large and owned by multinational companies. The area has historically been dominated by the auto industry and its suppliers, but newer industries, including those targeted for growth by government promotions and assistance, are acquiring land and locating here. Put simply, Rayong has a bright future as an industrial center, so make sure to keep an eye out for factories for sale in this region.

2) Factory for sale in Chonburi 

Chonburi province is probably most famous for being home to Pattaya, one of the region’s great tourist destinations. However, it is also one of the industrial centers of the kingdom and is the site of Laem Chabang deep seaport, Thailand's main container port. Chonburi is an ideal place to acquire factories and warehouses for investment purposes as it is just 90 minutes’ drive from Bangkok city center (120 km) and only an hour from Suvarnabhumi airport. This easy access to Thailand’s main airport is a particular advantage, as it means avoiding Bangkok traffic and cutting down on the time needed to get in and out of the country.

Factories for sale or lease in Chonburi are typically involved in the import and export of goods due to their proximity to Laem Chabang Deep Seaport. Industrial estates in Chonburi tend to be very popular with owners and occupiers, and consequently there is a limited supply of factories and warehouses for investors. As with Rayong, if Chonburi is where you would like your factory to be based it is important to continue monitoring the availability of any factories for sale in the region.

3) Factory for sale in Samut Prakan

Samut Prakan is located about thirty minutes’ drive from both Bangkok and Suvarnabhumi airport, making it an ideal place to look at factories for sale. The province is a major hub for logistics and distribution centers and has several world-class industrial estates, and additionally benefits from being well-served by highways and expressways into Bangkok city center and to Laem Chabang. All of these things have led to Samut Prakan developing into an area of high demand for factories. Some popular industrial estates here include Bangpoo Industrial Estate, Bangplee Industrial Estate, Gemopolis Industrial Estate, and a new industrial estate currently close to completion: Phraeksa Industrial Estate.

If you need more information or are looking to rent or buy factory, warehouse or industrial land in Thailand, please contact CBRE.