WHA Corporation, Thailand’s largest developer of industrial estates, anticipates a surge in land sales in the latter half of the year, driven by increased demand from foreign manufacturers and companies.
The Bangkok-based firm expects land sales to reach 224 hectares between July and December, representing a 40% increase over the first half of the year, according to Chief Financial Officer Natthapatt Tanboon-Ek during an interview on Wednesday. Notably, the company is poised to secure large contracts for two data center projects in the coming months, although Mr. Natthapatt did not disclose the identities of the buyers.
As Southeast Asia’s second-largest economy, Thailand is providing tax incentives and other benefits to attract new investments from companies like BYD (Build Your Dreams) Limited, Chongqing Changan Automobile Ltd, and Western Digital Corp. The ruling Pheu Thai party is counting on new foreign investments to stimulate economic growth and create jobs, particularly after delays in passing the government’s annual budget and high household debt have negatively affected domestic consumption.
Mr. Natthapatt expressed optimism for the remainder of 2024, stating, “We are very bullish with our outlook as several foreign manufacturers have accelerated their land acquisitions.” He added that strong demand has enabled the company to raise land prices by double digits compared to 2023.
According to Mr. Natthapatt, more than half of the new land buyers are Chinese firms operating in sectors such as automobiles, electronics, and electrical appliances. The surge in property sales is likely to enable WHA to achieve record sales and net income in 2024.
In the first half of the year, the Thai government approved investment applications totaling 458 billion baht (approximately US$13.5 billion), a 35% increase from the same period in 2023, with the majority coming from the electronics, automobile, and electrical appliance industries, as reported by the Board of Investment. Additionally, foreign companies like Amazon.com Incorporated’s web services division and Australia’s NEXTDC Ltd have announced plans for new data center investments in Thailand to capitalize on the growing demand for artificial intelligence (AI) and cloud computing services.
WHA’s net income nearly doubled in the first half, reaching 2.65 billion baht. The company’s shares have risen by almost 3% this year, contrasting with a 3.6% decline in the benchmark SET Index.
