Real Estate Flourishes in the Eastern Economic Corridor (EEC) – A Prime Location as an Economic Hub
The Thai government has injected TH฿330 billion into more than 90 projects aimed at catalyzing the development of the Eastern Economic Corridor (EEC). This corridor encompasses three eastern provinces: Chachoengsao, Chonburi, and Rayong. Of these projects, 77 are funded by the government with a budget of 178,578 million baht, while 16 are undertaken by the private sector with a total investment of 159,219 million baht. The objective is to bolster the EEC's potential as a thriving economic hub. Key developments include high-speed rail connections between Bangkok and Hua Mak-Chachoengsao-Sriracha, as well as a special highway linking Bangkok and Aranyaprathet sub-district. These initiatives emphasize efficient transportation systems and a well-connected network, utilizing modern technology in public infrastructure development to optimize land, water, and air transport. These projects will be executed continuously from 2023 to 2028.
By 2028, there are plans to support 29 sustainable EEC projects, transforming it into a financial center that caters to neighboring countries in the CLMV (Cambodia, Lao PDR, Myanmar, and Vietnam), attracting significant interest from foreign investors.
The EEC: A Game-Changer for the Real Estate Industry in Thailand
Private sector players are eagerly preparing for the boom in real estate. Dr. Sophon Pornchokchai, Chairman of the Agency for Real Estate Affairs (AREA), shared insights during a seminar titled "Direction of the Eastern Real Estate Market for Investment," held on Friday, August 25th, 2023, at Oakwood Hotel and Residence Sriracha. His key points can be summarized as follows:
- Nationwide, the total supply of available housing for sale is 3,190,527 units, with 1,518,000 units currently completed or under construction and awaiting sale. The average selling price per unit is 2.1 million baht.
- The top ten real estate entrepreneurs in the market are:
1. Pruksa Real Estate PCL.
2. A.P. (Thailand)
3. Sansiri
4. Land and Houses
5. Supalai
6. Ananda Development
7. Quality House
8. L.P.N. Development
9. Property Perfect
10. Origin Property
In the EEC region (2020-2023), property appraisals in prime areas reveal the following:
- Chonburi province: TH฿1,000 - TH฿140,000 per square wah
- Si-chang island: TH฿5,000 - TH฿100,000 per square wah
- Laem Chabang: TH฿6,000 - TH฿75,000 per square wah
- Bang Lamung: TH฿8,000 - TH฿45,000 per square wah
- Map Ta Phut: TH฿28,000 - TH฿115,000 per square wah
The top ten provinces with the highest real estate development are as follows:
1. Chonburi: 1,529 projects, totaling 732,586 million baht
2. Rayong: 669 projects, totaling 166,074 million baht
3. Chiangmai: 654 projects, totaling 251,833 million baht
4. Phuket: 406 projects, totaling 291,330 million baht
5. Nakornratchasima: 293 projects, totaling 91,202 million baht
6. Cha-am – Huahin: 222 projects, totaling 142,000 million baht
7. Chachoengsao: 105 projects, totaling 53,451 million baht
8. Khon Kaen: 316 projects, totaling 85,167 million baht
9. Pranakorn Sri Ayutthaya: 184 projects, totaling 68,521 million baht
10. Songkla (Hat-Yai): 391 projects, totaling 78,486 million baht
In total, there are 4,725 projects valued at 1,960,150 million baht, with Chonburi, Rayong, and Chachoengsao ranking high in EEC real estate development.
Dr. Sophon also mentioned that in the EEC, foreigners have favorable options for land and condominium ownership, including the ability to lease land for 99 years through two contracts (49+50 years). Moreover, the EEC is expected to accept Chinese yuan and U.S. dollars as currencies for transactions in the future.
Mr. Kritsana Techasamma, the Managing Director of Origin Nationwide and Origin Property PCL, highlighted foreign investments in the EEC, particularly in Rayong, known for its industrial strength with 3,075 factories valued at 3,237,647.18 million baht, creating approximately 196,526 jobs and a total investment of 1.57 trillion baht.
Mr. Titikorn Dumrongpanit, an expert from the Investment Promotion of the Economic Center Region 4 (BOI: Chonburi), revealed special measures for EEC investments, offering non-tax incentives for foreigners to hold 100% of shares, own land, and employ skilled craftsmen. Tax incentives for corporate entities can range from 3-8 years or 10-13 years, with income tax reductions of up to 50% for 2-3 years based on various criteria, such as human resource development in cooperation with educational institutions.
Furthermore, investments in special economic zones in the three EEC provinces that have received BOI approval (as of 2022) include 315 projects in Chonburi with a total value of 95,787 million baht, 242 projects in Rayong with a total value of 248,382 million baht, and 54 projects in Chachoengsao with a total value of 23,821 million baht.
Dr. Viriyaphol Kanasiriwat, Founder and CEO of Trends Real Estate Magazine (THAI-CHINESE-ENGLISH), emphasized the importance of understanding competitors' strategies, location scouting, design considerations, effective marketing, and financial planning to succeed in the real estate industry, particularly in the EEC. He underscored the significance of customer service throughout the sales process.
Walai Choothammathat : Executive Editor
