Developer confidence slumps in Q2

The sentiment index of Greater Bangkok housing developers dropped to its third-lowest level in the second quarter of 2025, behind the massive floods in 2011 and the global financial crisis in 2008, even sinking below sentiment during the pandemic.

- KANANA KATHARANGSIPORN

According to the Real Estate Information Center (REIC), the Housing Developer’s Sentiment Index tallied 39.3 in the second quarter of 2025, down 2.7 points from the previous quarter.

The survey began in the fourth quarter of 2007.

The lowest level was recorded at 37.1 in the fourth quarter of 2011 during the great floods, while the second-lowest was 37.3 in the fourth quarter of 2008, following the collapse of Lehman Brothers, the fourth-largest US investment bank, which triggered a global financial meltdown.

The previous third-lowest index was 41.2 in the first quarter of 2020, during the onset of the pandemic. Overall, the index has fallen below the 50.0 threshold 28 times since the survey began.

A sentiment index above the median level of 50.0 indicates that developers are confident and hold a positive outlook on the market. Conversely, a reading below 50.0 reflects weakened confidence and a more negative sentiment.