Thailand's border provinces and those along main transport routes and future economic corridors are drawing interest from foreign investors who bought land plots for trade and industrial expansion.
A boat negotiates a curve in the Mekong River between Chiang Rai’s Chiang Saen and Chiang Khong districts. PATTARAPONG CHATPATTARASILL
Surachet Kongcheep, associate director of research at property consultant Colliers International Thailand, said potential destinations in the North are Tak's Mae Sot district and Chiang Rai's Chiang Khong district.
In Mae Sot, on the Myanmar border, hotels and condominiums are being developed.
The area will become more attractive for investment after the cabinet approved the development of 5,600 rai south of the Moei River to support new investment.
In Chiang Khong, Chinese investors are buying land to develop wholesale centres and commercial buildings because the area is being developed as a special economic zone.
"The potential of Chiang Khong is rising. A new bridge crossing Mekong River will be complete in 2013-14 and a port for shipping goods to China opened late last year," Mr Surachet said.
Despite not bordering neighbouring countries, Phitsanulok has gained interest from Chinese investors interested in buying land for factories.
Phitsanulok is a major intersection point between the western economic corridor and the northeastern economic corridor. It is also a location for one of the government's high-speed projects.
In the South, Sadao and Hat Yai in Songkhla province are drawing investment from Malaysian investors for rubber-processing factories.
In Ranong, Thai, Malaysian and other foreign investors are buying land to build seafood-processing factories to export products to China and Malaysia.
"Border provinces have high potential for growth for industrial estates, offices, hotels and serviced apartments, and residential and commercial property," Mr Surachet said.
Though the Board of Investment recently reported an increase in projects and investment in the first half of this year, neighbouring countries are faring even better.
"The Asean Economic Community in 2016 will dramatically change Thailand as Bangkok is located in the centre of upper Asean, where countries such as Cambodia, Laos and Myanmar are gaining interest from foreign investors but their financial infrastructure is still not sufficient," said Mr Surachet.
After studying the property market in Myanmar since 2011, Colliers opened an office in Yangon earlier this month, with Tony Picon posted as managing director.
It will seek office space, industrial areas and residential units for tenants from multinational companies, mainly from Singapore, Thailand and South Korea.
Since late last year, Colliers has completed 10 transactions including 830 square metres of office space, a plot for a factory, redevelopment of a factory and two condo units with rents of US$5,000 a month.