Influx of Chinese EV-makers leads to 23% surge in Rayong land prices
Rayong province has emerged as a magnet for Chinese electric vehicle (EV) manufacturers, pushing up land prices in the area, according to a recent study by the Real Estate Information Center (REIC) on Thursday.
It showed that land prices in Rayong had risen on average by 22.9% in the past year.
The most sought-after location is Ban Chang, where prices have soared by 52.5%, fuelled by the demand for housing development to support workers in industrial estates and tourism.
Vichai Viratkapan, inspector of Housing Bank and REIC acting director-general, attributed the overall increase in land prices in the Eastern Economic Corridor (EEC) area to several factors. While the growth rate has slowed compared to pre-Covid-19, it remains higher than the five-year average.
Factors contributing to the slower growth rate include:
- Economic slowdown: The recovery of the economy and domestic investment has been sluggish, impacting demand for land development.
- Government policies: The cancellation of LTV relaxation measures, high household debt, and a stable policy interest rate have slowed down the real estate sector.
- Land and building taxes: The lack of reductions in land and building taxes has discouraged some investors.
Despite these factors, land prices in Rayong province have continued to rise due to the influx of Chinese EV manufacturers. Companies like BYD and Changan have invested in the Rayong Industrial Estate, particularly in the Pluak Daeng Development Estate.
As a result, land prices in Rayong have increased by around 2.3 times compared to 2015, making it a more attractive investment option than Chonburi province.
The top five locations with the highest growth rates in land prices are:
- Ban Chang district, Rayong (52.5% increase)
- Klaeng district, Rayong (34.5% increase)
- Bang Pakong district, Chachoengsao (31% increase)
- Sattahip district, Chonburi (26.8% increase)
- Nikhom Pattana district, Rayong (17.3% increase)
The surge in land prices in these areas reflects the increased demand for housing to accommodate the growing workforce in industrial estates and tourist destinations. The development of industrial areas has created more job opportunities, driving demand for residential projects.
