The developer sentiment index for Greater Bangkok’s housing market fell for the second consecutive quarter in Q3, hitting its lowest level since Q3 2020.

 

Kamonpop Veerapala, president of Government Housing Bank and acting director-general of the Real Estate Information Center (REIC), reported the current situation index at 45.1, a 4.6-point drop year-on-year and 0.1 points lower than in Q2.

 

“The index has remained below the neutral threshold of 50 for seven consecutive quarters, signaling a continued decline in developer confidence in the residential sector,” he said.

 

The last time the index was this low was in Q3 2020, at 42.8 points, before rising to 46.3 in Q4 2020.

 

In Q3 2024, the most significant quarter-on-quarter decline was seen in sales sentiment, which dropped 6.6 points to 40.7, followed by a 0.2-point dip in investment sentiment, bringing it to 47.4.

 

Notably, revenue sentiment rose by 2.5 points to 42.0, and sentiment for new project launches increased by 1.6 points to 50.7.

 

Development costs sentiment increased 1.5 points to 40.4, while employment sentiment rose by 0.9 points to 49.6. However, except for new project launches, all other components remained below the neutral 50 mark.

 

The sentiment index for listed developers declined to 47.9, down from 52.2 in Q2 2024, reflecting reduced confidence and heightened concerns among listed firms, according to REIC.

 

Sales sentiment for listed developers saw the largest drop, falling 15.8 points to 43.8. Investment and new project launch sentiment both declined by 5.6 points to 52.1, while revenue sentiment decreased by 2.3 points to 47.7.

 

On the positive side, development costs sentiment rose by 3.1 points to 39.6, and employment sentiment edged up by 0.2 points to 52.1.

 

Looking ahead, the expectations index for the next six months rose to 51.6, slightly up from 51.4 in Q2 2024, signaling a positive outlook from developers for the near future.

 

The biggest improvement was seen in sales sentiment, which increased by 3.4 points to 57.8, followed by development costs, which rose by 2.9 points to 37.5.

 

Employment sentiment increased by 2.2 points to 52.4, and revenue sentiment grew by 2.0 points to 53.0.

 

However, there were declines in sentiment for new launches, which dropped by 6.3 points to 58.1, and investment, which decreased by 3.1 points to 51.0.

 

Source: Bangkok Post

 

Yours sincerely,

The editorial team at Invest Bangkok Property