Exploring the Potential of Ayutthaya: A New Hub for Leading Industries in Central Thailand

‘Ayutthaya’ is remembered by Thais as the former capital with a rich history spanning 417 years, from 1893 to 2310 BE. Despite the passage of 254 years, the significance of Ayutthaya remains unchanged, continuing to be a vital economic center for leading industries in Central Thailand and the nation. This article by Terra Research will present the potential of Ayutthaya's location.

Growth of the Industrial Sector in Ayutthaya

With its location just over an hour from Bangkok, Ayutthaya has excellent accessibility compared to other provinces, making it a central industrial hub that connects conveniently with the capital. Additionally, the competitive potential of the industrial sector in Phra Nakhon Si Ayutthaya is significant, hosting five industrial estates and a total of 2,768 factories both inside and outside these estates. The registered capital of all factories in the province amounts to 659.611 billion baht, making the industrial sector a crucial driver of Ayutthaya's economy, accounting for 70% of the province's economic value annually. In 2019, the industrial sector in Ayutthaya was valued at approximately 262.819 billion baht, representing 5% of the national industrial value.

Source: Product and Provincial Data, National Economic and Social Development Office, 2019 and Ayutthaya Provincial Treasury Office, 2019

Hundreds of Thousands of Personnel: A Key Demand for Real Estate in Ayutthaya

As the industrial sector becomes the mainstay of the province's economy, the significant demand in Ayutthaya is undoubtedly the workforce employed in these industries. The industrial sector in Ayutthaya employs 232,000 personnel across 2,768 factories, with the top five manufacturing categories being metal production (233 factories, 11%), plastic products (172 factories, 8%), electrical appliances (169 factories, 8%), non-metal products (149 factories, 7%), and other manufacturing industries (462 factories, 21%). Additionally, there are high-level manufacturing personnel in vehicle manufacturing (142 factories, 7%), chemical products (82 factories, 4%), and petroleum products (48 factories, 2%).

Source: Industrial Factory Data, Department of Industry, 2020

Ayutthaya's GPP Per Capita Ranks in the Top 10 Nationwide for the Past Decade

In 2019, the GPP of Phra Nakhon Si Ayutthaya, according to the National Economic and Social Development Office, reached 399.621 billion baht, with the industrial sector contributing 262.819 billion baht, accounting for 59.85% of the province's GPP. Over the past decade, from 2010 to 2019, Ayutthaya's GPP per capita has consistently ranked in the top 10 nationwide, maintaining positions between 4th and 7th. In 2019, Ayutthaya's GPP per capita was 439,159 baht, ranking 6th in the country, surpassing the average for Central Thailand (271,360 baht) and the national average (243,787 baht), reflecting its competitive economic capability and its status as a true industrial hub of Central Thailand.

Source: Product and Provincial Data, National Economic and Social Development Office, 2019 and Ayutthaya Provincial Treasury Office, 2010 - 2019

Household Income Growth Over the Past 5 Years

The average household income in Phra Nakhon Si Ayutthaya has shown continuous growth over the past five years, averaging 3.09% annually. In 2019, the average household income was 30,589.95 baht, higher than the national average (26,018.42 baht) and the Central Thailand average (25,781.96 baht). This average household income reflects the purchasing power and the ability of the population in Phra Nakhon Si Ayutthaya to own housing.

Source: National Statistical Office, 2015 - 2019

Future Opportunities Flowing into Ayutthaya

In addition to the existing economic potential and purchasing power, Ayutthaya has future opportunities arising from several mega-projects, including:

  • Central Ayutthaya: A new shopping center that will create a Complete Tourism Ecosystem for Ayutthaya under the concept of "Amazing Ayutthaya," valued at 6.2 billion baht, set to open on October 27, 2021.
  • AEC Trade Center: A regional trade center for ASEAN, with an investment of over 6 billion baht, covering more than 300,000 square meters in Bang Pa-in.
  • Bang Pa-in – Korat Motorway Project: A special expressway project connecting Central and Northeastern Thailand, covering 196 kilometers, expected to open in 2023.
  • Don Muang Tollway Extension (Rangsit - Bang Pa-in): An 18-kilometer tollway extension project valued at 28.36 billion baht, enhancing access to Ayutthaya, expected to commence construction between 2022 and 2025.
  • High-Speed Rail Project Bangkok – Nakhon Ratchasima: A mass transit development project with a budget of 179.413 billion baht for the 253 km route, expected to open between 2026 and 2027.
  • High-Speed Rail Project Bangkok – Chiang Mai: Another mega-project currently awaiting bidding, covering 673 kilometers with an investment of 420 billion baht.
  • Sports Complex and Logistics Distribution Center Project: A significant investment from TCC Group for a multimodal transport project on 20,000 rai of land along the Chao Phraya River in Bang Ban - Bang Sai, currently under observation.

All of these factors highlight Ayutthaya's outstanding potential across various aspects, demonstrating economic growth and confirming that Ayutthaya is indeed the New Hub for industries in Central Thailand.

Growth of Land Prices in Ayutthaya

Over the past eight years, the assessed land prices in Ayutthaya have clearly increased, particularly along three main roads in the area.

  • Highway No. 32 (Asia Highway): The assessed value from 2016-2019 ranged from 10,000 to 40,000 baht per square wah, up from 10,000 to 20,000 baht per square wah (2012-2015), effectively doubling the upper limit from the previous period.
  • Highway No. 309 (Rojana): The assessed value from 2016-2019 ranged from 20,000 to 50,000 baht per square wah, up from 20,000 to 40,000 baht per square wah in the previous period, representing a 25% increase.
  • Land adjacent to Highway No. 1: The assessed value from 2016-2019 increased from 10,000-45,000 baht per square wah (2012-2015) to 20,000-45,000 baht per square wah.

With the growth potential of the industrial sector and upcoming mega-projects, land development in Ayutthaya is expected to increase, leading to further growth in land prices.

Condominium Market Situation in Ayutthaya

The condominium market in Ayutthaya has not seen many new projects, with only three currently available for sale, priced at an average of 44,000-52,000 baht per square meter for pre-sales, while resale prices range from 57,000-59,000 baht per square meter. Given the limited supply and increasing demand for housing from expanding job opportunities, this can yield a Capital Gain of 8-9% per year. The rental market for condominiums has an average rental rate of 320-350 baht per square meter per month, generating a Rental Yield of 7-9% per year, with average monthly rents ranging from 7,500-11,000 baht for 30-35 square meter units, while units of 50 square meters and above can rent for 12,000-25,000 baht per month.

In comparison, the rental prices for serviced apartments in this area range from 14,000 to 25,000 baht per month for units sized between 30 to 70 square meters, which is relatively high. Those seeking housing in this area might consider purchasing a condominium instead, as the mortgage payments could be comparable to the rental costs of condominiums or serviced apartments.

Currently, there are three condominium projects available for sale: Plus Condo Ayutthaya, priced at 2.09 million baht, at 38,000 baht per square meter with 157 units completed in 2018; Plus Condo Ayutthaya Park, ready to move in, starting at 1.45 million baht, priced at 53,000 baht per square meter with 647 units; and Sun to Moon Residence, the newest project starting at 1.89 million baht, with a starting price of only 36,000 baht per square meter, offering spacious units starting at 53 square meters, providing a comfortable living space. For anyone looking for housing in Ayutthaya, Sun to Moon Residence is the most valuable project in the area.