Sriracha, also known by some as ‘Little Osaka’, is an industrial city that attracts foreign personnel, especially from Japan. Many Japanese companies have invested in over 10 industrial estates, with an estimated population of around 8,000-10,000 Japanese residents in Sriracha. However, the Japanese influence that permeates the city is not the only charm of this location; it is also the economic value and the job opportunities available for skilled personnel, both Thai and foreign. Additionally, the development of the Eastern Economic Corridor (EEC) presents promising prospects. In this article, TERRABKK will delve into the Sriracha area to prove that Sriracha is indeed a balanced city between living and working.

Exploring EEC Development Projects and Updates on Their Success

Before we dive deep into Sriracha, let’s take a look at the broader picture of the EEC development project, which plays a crucial role in enhancing and pushing the potential of Sriracha. This initiative promotes and supports the industrial sector in the area, further attracting more investments and skilled personnel.

According to EEC data, the success of targeted industrial investments in the EEC area is evident, with approved investments from 2018 to 2022 amounting to 2,005,799 million baht. This includes joint investments in core infrastructure between the public and private sectors, integrated budgets, and investment promotion certificates, with a total value of investment promotion certificates issued from 2018 to 2022 reaching 1,250,273 million baht. This occurred despite fluctuations due to the global economic downturn and COVID-19, with investment promotion certificates issued for the First S-Curve at 40%, New S-Curve at 30%, and other industries at 30%.

If you’re wondering what the next steps for the giant EEC project will be, it’s essential to keep a close watch, especially in 2027, after the construction of the area is completed and investments are attracted through major infrastructure such as Laem Chabang Port, high-speed rail, U-Tapao Airport, and Map Ta Phut Port, which are expected to commence operations around 2026-2027. The EEC is anticipated to become a gateway connecting global trade and investment systems, potentially generating 400-500 billion baht in investments annually, attracting quality personnel and increasing population income, which means greater purchasing power and improved economic circulation.

Understanding the Industrial Value: The Core Economy of Sriracha

Data from the Industrial Data Center as of February 2023 shows that Chonburi province hosts 5,090 industrial factories with a total investment value of over 925,725 million baht, employing a total of 320,320 personnel. There are 14 industrial estates, with over 1,500 factories located within these estates, and an investment value exceeding 524,759 million baht. Nine of these estates are located in Sriracha, housing over 650 factories with a total investment of 184,385 million baht and employing over 100,000 people, accounting for one-third of the workforce in the industrial sector across Chonburi province.

Foreign Residents in Sriracha: Not Just Japanese

The nickname ‘Little Osaka’ for Sriracha comes from the foreign personnel, particularly Japanese, who have relocated to work in leading companies such as Mitsui, Bridgestone, Toyota, Hitachi, Sony, Mitsubishi, Itochu, MASA, PASONA, and many more. These expatriates typically stay for 1-7 years, often bringing their families, resulting in a Japanese population exceeding 10,000 in Sriracha.

However, did you know that foreigners coming to the EEC area are not only here for work but also intend to spend their retirement in the EEC? According to statistics from the Immigration Bureau, the number of foreigners choosing to retire in the EEC has been steadily increasing since the COVID-19 situation began to ease. In 2022, there were 32,502 foreigners living in Chonburi for retirement, with demographics including Scandinavians (22%), Germans (18%), British (13%), Americans (9%), French (7%), and others (31%).

The Talent Demand Potential Continues from EECd

In addition to Sriracha's existing talent demand in the industrial sector, an exciting development to watch is the promotion of EECd or Digital Park Thailand, aimed at fostering the new digital industry (New S-Curve) across an area of over 500 rai, which will attract new talent demand from many leading global companies under the Demand-Driven concept, such as Microsoft, SIEMENS, HUAWEI, Google Cloud, IBM, PIXAR, Amazon, FedEx, DreamWorks, LEGO, and many more.

The arrival of these leading global companies brings not only talent demand but also know-how and knowledge that will enhance the capabilities of Thai personnel, increase job opportunities, and elevate the income of Thai workers, which in turn boosts the purchasing power of the local population.

Sriracha's Readiness as a Balanced City for Work and Living

When considering the overall potential of Sriracha, one might view it as a heavy industrial city unsuitable for living. However, many may not know that Sriracha has been strategically positioned as a ‘City of Balance between Living and Working’. With a concentration of hundreds of thousands of personnel, planning for residential accommodation is essential. Looking at Sriracha's current potential, it is evident that the city is highly prepared.

In terms of transportation, once the high-speed rail is operational, travel between Sriracha and Bangkok will take only one hour. The development of the motorway makes driving even more convenient, allowing access to two major international airports, Suvarnabhumi and U-Tapao, as well as industrial estates, ports, and emerging special economic zones within 30 minutes.

Regarding lifestyle, Sriracha boasts a unique physical landscape with mountains, sea, and several emerging lifestyle centers. Shopping centers are well-distributed throughout the city, including Robinson Sriracha, J-PARK, AEON, Tower Com, and Central Sriracha, which spans 140,000 square meters. Additionally, there are over 12 golf courses scattered throughout the area.

In terms of basic facilities, Sriracha has leading hospitals catering to foreign residents, such as Samitivej Sriracha Hospital and Phyathai Sriracha Hospital, along with over 10 international schools offering Japanese, British, and American curricula. There are also leading Thai educational institutions, such as Assumption College Sriracha, St. Paul Convent School Sriracha, Dara Samut School, Kasetsart University Sriracha, and Thammasat University Pattaya Campus.

It can be said that Sriracha is comprehensive in every aspect of a city, including job opportunities, lifestyle, facilities, and transportation, making the strategy of becoming a ‘City of Balance’ as outlined in the national strategy not an unrealistic vision.

Sriracha: A High-Potential Location Attracting Branded Residences

With the potential of the location as a balanced city between living and working, there has been a development of Branded Residences in the form of serviced apartments across various projects, reflecting the high purchasing power demand in the area from investors, businesspeople, and those working in the EEC, both Thai and foreign. The residences come with hotel-standard services, making serviced apartments highly sought after. Currently, there are a total of 7 Branded Residence projects, which can be divided into three groups:

1. Serviced Residences: These are condominium-style residences with hotel-like services, such as the Hampton Sriracha project, a collaboration between Origin and Dusit Thani, enhancing the strength of high-standard living with comprehensive services. The project stands out as it offers more privacy than other serviced apartments, with various room types to choose from based on lifestyle. Additionally, the common areas and services are well-equipped, meeting residential needs, and these facilities are included in the common fee, eliminating the need for additional monthly service charges.

2. Hotel and Serviced Residence Group: This group includes both hotels and serviced apartments, featuring comprehensive facilities and services that meet hotel standards (criteria include beautiful interior and exterior decoration, guest amenities, and service quality). Examples include Oakwood Hotel & Residence Sri Racha, Citadines Grand Central Sri Racha, and Somerset Harbourview Sri Racha, which offer complete services with higher monthly rental costs.

3. Hotel and Serviced Apartment Group: Projects like Classic Kameo Hotel and Serviced Apartments, Kantary Bay Hotel and Serviced Apartments, and Cape Racha Hotel & Serviced also serve as both hotels and serviced apartments but focus more on long-stay living, providing larger living spaces that feel like home, with standard amenities and services sufficient to accommodate tenants. The service and utility costs of serviced apartments are included in the rent, resulting in relatively high rental prices.

Overview of the Condominium Market in ‘Sriracha’

‘Sriracha’ is a location that has seen continuous condominium growth. Looking back over the past 10 years, since 2012, this area has seen new supply every year, with some years launching 7-8 new projects. The steady influx of condominiums reflects that both small and large real estate developers recognize the potential of this location. For instance, Origin has established numerous projects here, including Knightsbridge the Ocean Sriracha, Notting Hill Laemchabang, Kensington Laemchabang, Brixton Kaset Sriracha Campus, and the recently completed luxury project, Hampton Sriracha. Additionally, there are projects from Supalai, Pruksa, Asset Wise, and local developers.

Despite the continuous supply, currently, over 80% of condominiums in this area have been absorbed, indicating strong demand for condominiums from both end-users and investors.

Investment Returns in the ‘Sriracha’ Area

Surveys of rental rates for condominiums in Sriracha reveal that rental prices range from approximately 270-520 baht per square meter per month. Monthly rental costs depend on the size of the unit, with the following details:

  • Studio: Sizes range from 28-35 square meters, with rental prices between 6,000-11,000 baht per month. Given the relatively low condominium costs, they can be rented out at a high rate, generating a rental yield of 5.1%-7% per year.
  • 1 Bedroom: This is the most popular room type, ranging from 25-65 square meters, with rental prices around 8,000-35,000 baht per month, generating a rental yield of approximately 4.5%-6.3% per year.
  • 2 Bedroom: Sizes range from 45-100 square meters, with monthly rents between 12,000-50,000 baht, yielding a rental return of 4.6%-5.9% per year.
  • 3 Bedroom: Sizes range from 100-120 square meters, with rents between 40,000-69,000 baht per month, generating a rental yield of approximately 3.5%-5.9% per year.

The overall rental yield for condominiums in Sriracha averages 5.5% per year, while the selling price for second-hand units in this area ranges from 55,000-110,000 baht per square meter, generating a capital gain of approximately 3%-5% per year, depending on the project condition and location.

All of this highlights the potential of ‘Sriracha’ and its vibrancy in various aspects, from being an industrial city that attracts investments and personnel to its comprehensive offerings in terms of job opportunities, lifestyle, facilities, and transportation, making Sriracha a perfectly blended city for living and working. The readiness of this location makes ‘Sriracha’ one of the prime areas worth investing in, both for living and investment.