The news of Jack Ma's resignation from Alibaba once toped the headlines on China’s social media, and the live broadcast of his retirement also spread people's circle of friends. As one of influential entrepreneurs in this era, Mr. Ma's movements also attracted attention at home and abroad. Just last year, he made another meaningful decision: to go to Thailand and enter the Eastern Economic Corridor of Bangkok, with a capital injection of $350 million!

Thai media "Bangkok Post" also headlined the news that day, and the Minister of Industry (Uttama Savanayana) said, "It can be confirmed that Alibaba will set up a logistics hub in Chachoengsao, one of the three EEC provinces, to support its e-commerce business in ASEAN." This investment demonstrates Ali Group's confidence in Lazada's future success and growth prospects in Southeast Asia," Ali said in a statement, “The Southeast Asian market is an important part of Ali's growth strategy.”

Ali Group's attention to the layout of Southeast Asia and the Thai market will create potential employment opportunities and economic growth. In the future, Thai e-commerce, trade and real estate market will usher in great development.

The Eastern Economic Corridor of Thailand (EEC) refers to the establishment of economic zones in three provinces along the eastern coast of Thailand, namely, Chachoengsao Province, Chon Buri Province (Pattaya) and Rayong (Utapau Airport), to attract new industries by vigorously developing infrastructure and implementing a series of preferential investment policies. The Eastern Economic Corridor Development Program (EEC) of Thailand will strive to build Eastern Thailand into a transportation fortress integrated with a three-dimensional land, sea and air transport system for cargo transportation and tourist commuting. Not long ago, it’s reported that Bangkok received more overnight tourists even than London and Paris, with 22.78 million people having also brought a steady stream of rental demand for the city.

What can we expect from the EEC in 2019？

Infrastructure Construction Accelerated and Railway Network Extended: Land Price and Land Price Rising along the Line

Thailand's official EEC Bureau said that it was projected to invest $752 billion in infrastructure construction, accounting for 44% of the total investment. With the promotion of overall construction and the impact of EEC policy, the Bangkok Railway has gradually extended. BTS Sukhumvit Line opened a new operation section at the end of last year, which has been able to quickly travel from Bangkok to other provinces. It only takes 30 minutes from Samrong, the former terminal, to the Bangkok business circles. 

Judging from the development and construction speed, although Thailand's infrastructure construction speed will not be as rapid as China’s, in 2015, the total length of the Bangkok railway network was only 100.1 km, but will be extended to 237.3 km in 2019 and 515.3 km in 2032, and Bangkok will become the fifth largest railway city at home and abroad.

With the development of railways, house prices will rise steadily year by year. For example, land and property prices along the BTS Silom Line, which was opened a few years ago, have risen by about 33% in the past 2 years (survey data from the Land Bureau of Thailand).

Improved Railway Transportation and the Birth of a New Bangkok Business Circle-Bangna District

At present, Bangkok has two subway lines in operation and with high utilization rate: BTS and MTT lines. BTS line mainly extends from north to southeast, through Bangkok's many busy business circles. The southwest of BTS line passes through the old Sarton business circle in Bangkok, and the east of BTS line lies in the new business circle in Bangkok, which is recognized by us now. However, the new business circle has been developed rapidly in recent years, especially in Sukhumvit District, where resources and population are too dense, which makes the urban carrying capacity nearly saturated.

So, taking the free ride of Thailand's "Eastern Economic Corridor" strategy, the railway continues to extend along the Eastern Economic Corridor until the "Three Provinces", which gives birth to a new Bangkok business circle, Bangna District, which is located on the railway extension line in the southeast of BTS line. The Thai government also plans to move the original business district facilities south to create a new business district in Bangkok's Bangna district located in the Eastern Economic Corridor region. And this region is also where Alibaba and Huawei are injecting capital. Bangna, as a necessary part of the Eastern Economic corridor, has attracted people's attention.

Through Siam Square and Sukhumvit District, extending southeast along the BTS line, the new business circle in Bangkok's Bangna District, is also the starting point of the Eastern Economic Corridor Region of Thailand. In the future, the government will develop the new business circle in Bangkok to undertake the southward-moving commercial facilities of the "Five Golden Stations": there is an international exhibition venue, IKEA, BANGKOK MALL (one of the most popular shopping destinations in Bangkok), Berkeley International Education Institute, etc. Of course, more companies from the world's top 500 have injected capital and major high-tech industries.

With the continuous improvement of the railway along the BTS line and the EEC policy bringing more opportunities for development and economic detonation to Bangkok, the house prices of commercial circles along the BTS line have risen rapidly, and the average price of real estate in Bangna District of Bangkok has reached about RMB 25,000-30,000 yuan per unit area. Few white-collar workers who work in business districts live directly in business circles, but prefer to rent houses nearby railway stations. For example, white-collar workers working in Sukhumvit Business District mostly choose to live near On Nut or Punnawithi stations along the south of BTS line, which is not only between Sukhumvit District and Bangkok Bangna District (Eastern Economic Corridor), but also relatively cheap, and can guarantee a high-quality life circle. In "crowded" Bangkok, these areas become people's preferred choice of place to live.

Various preferential policies to attract foreign investment, sustained development in the eastern region and increased rental demand

Various preferential policies attract foreign investment and high-tech talents, and the transformation of industry and agriculture creates new employment opportunities, which increases the demand for leasing in the region. Bangkok has a large workforce and a low unemployment rate (1%). In the future, rental demand, especially along the railway, is expected to grow steadily and continuously.

Further promotion of the Eastern Economic Corridor in 2019 will undoubtedly contribute to facilitate the overall economic development of Thailand. Overseas real estate investors should have a good eye for glimpsing the opportunities and having a place in such a land which will soon be covered with gold.