Foreign investment related to semiconductors and data centers in Thailand’s industrial estates is surging, while the housing market remains sluggish. Both supply shortages and expanding demand are unfolding at the same time.
Thailand’s real estate market is showing a stark contrast between residential and industrial property, with high household debt making it difficult to obtain home loans. Meanwhile, foreign direct investment in technology-intensive sectors such as semiconductors and data centers is driving demand for industrial estates and logistics facilities.
This polarization is also reflected in FPT’s results. Revenue from home sales declined, while factory and warehouse occupancy remained high, exceeding 90%. The industrial structure is shifting from automotive-related businesses toward semiconductors, electronic components and other sectors.
According to the data, applications for investment in Thailand backed by Singaporean capital totaled THB 1.121 trillion, with much of the funding reportedly coming from parent companies in China, Japan and the United States. A Knight Frank Thailand survey found that serviced industrial land supply totaled 191,292 rai in the first half of 2026. Although the number of approved projects declined, land acquisitions increased year on year.
Concerns about supply shortages are intensifying. Supply growth has remained at approximately 8% over the past 4–5 years, while demand has expanded by approximately 18%. The average price of industrial land has risen to approximately THB 8.4 million per rai. A total of 8,996 rai of industrial land is expected to be completed in the fourth quarter of 2026, but the gap between the pace of supply and rising demand is a concern.