The Eastern Economic Corridor (EEC) in Thailand has experienced a significant uptick in land prices during the first quarter of 2025, driven by a surge in foreign investment.

According to the Real Estate Information Center (REIC) of the Government Housing Bank, foreign direct investment (FDI) in the EEC reached 47.033 billion baht in Q1 2025, marking a 31% increase compared to the same period in the previous year.

Major investors from Japan, China, and Singapore have been actively seeking land for both residential and industrial projects within the EEC.

This influx of investment has led to a notable rise in land prices across the region.

The undeveloped land price index in the EEC surged to 332.2 points, reflecting a 24.9% year-on-year increase and a 2.6% quarter-on-quarter rise.

Among the provinces within the EEC, Rayong recorded the highest growth in land prices, with its index rising by 43.5% year-on-year to 259.2 points.

This increase is attributed to manufacturing relocations and robust infrastructure development.

Chonburi followed with a 33.6% year-on-year increase, reaching 468.4 points, supported by growth in the residential market, particularly in Pattaya.

Conversely, Chachoengsao experienced a 13.5% decline, bringing its index down to 161.0 points, indicating a slowdown in demand for residential development land.

The top five locations with the highest year-on-year land price growth were:

- Bang Lamung District, Chonburi: +126.5%
- Si Racha District, Chonburi: +88.6%
- Ban Khai District, Rayong: +47.9%
- Mueang Chonburi District: +33.5%
- Pluak Daeng District, Rayong: +11.2%

These developments coincide with ongoing infrastructure projects in the region.

The high-speed rail project connecting Don Mueang, Suvarnabhumi, and U-Tapao airports, a cornerstone of the EEC initiative, is undergoing contract revisions.

The revised agreement is expected to be approved by the Cabinet in August 2025, with construction slated to take 3-4 years, including the installation of signalling systems.

The project is projected to be operational by 2029.

Progress on U-Tapao Airport has faced setbacks due to the rail project's delays.

However, the Eastern Economic Corridor Policy Committee (EECPC) has made decisions to unlock the project for private sector involvement, allowing further development.

Despite delays in these two projects, private sector investments continue in industrial estates and factories, leading to a demand for housing projects, both low-rise and high-rise, as land prices steadily rise.

The EEC's economic potential, serving as a hub for industrial estates and key tourist destinations, has driven industrial growth and employment, attracting both Thai and foreign workers.

In the residential sector, the number of units and value saw a slight decline of 0.8% and 0.5%, respectively, year-on-year, mainly due to the end of property stimulus measures in December 2024.

However, the reduction in residential project licenses and land allocations is expected to reverse in 2025, with government measures such as the 260 billion baht economic stimulus and the "You Fight, We Help" program boosting market recovery.

It is estimated that transfer volume will rise by 2.4%, and project investments in land allocations and housing construction are expected to grow by 22.7% and 2.5%, respectively.