The sentiment index for housing developers in Greater Bangkok in the third quarter declined for a second consecutive quarter, reaching its lowest point since the third quarter of 2020.
Kamonpop Veerapala, president of Government Housing Bank and acting director-general of the Real Estate Information Center (REIC), said the current situation index was 45.1, down 4.6 points year-on-year and 0.1 points from the second quarter.
"The index has been below the median of 50 for seven consecutive quarters, since the first quarter of last year," he said.
"This indicates a continuous decline in developer confidence in the residential market."
The last time the index was this low was the third quarter of 2020, at 42.8 points before rising to 46.3 in the fourth quarter of 2020.
In the third quarter of 2024, the largest quarter-on-quarter decline contributing to the index dip was in sales sentiment, which fell 6.6 points to 40.7, followed by investment sentiment, dropping 0.2 points to 47.4.
The largest increase was for revenue, which climbed 2.5 points to 42.0, followed by sentiment for launches, which rose 1.6 points to 50.7.
Sentiment for development costs rose 1.5 points to 40.4, while employment sentiment gained 0.9 points to 49.6.
However, all components, except for sentiment for launches, remained below the threshold of 50.
The sentiment index of listed developers was 47.9, down from 52.2 in the second quarter of 2024. This indicates listed firms had less confidence in the current situation and signalled increased concerns, according to REIC.
The largest quarter-on-quarter decline was for sales sentiment, dropping 15.8 points to 43.8, followed by investment and new project launches, both down 5.6 points to 52.1, and revenue, which fell 2.3 points to 47.7.
Only two components increased: development costs rose 3.1 points to 39.6 and employment edged up 0.2 points to 52.1.
The expectations index, reflecting sentiment for the next six months, was 51.6, up 0.2 points from 51.4 in the second quarter of 2024.
This figure was higher than the median, indicating that developers have a positive outlook for the market during that period.
The largest increase was in sales, which rose 3.4 points to 57.8, followed by development costs, up 2.9 points to 37.5.
Employment rose 2.2 points to 52.4, while revenue grew 2.0 points to 53.0.
However, two components reported a decline: new launches dropped 6.3 points to 58.1, while investment decreased 3.1 points to 51.0.