Housing indexes reflect developers’ concerns on economy
In fresh data reflecting concerns about the economy, the Housing Developers Sentiment Index (HDSI) of developers in Bangkok and nearby provinces fell to 44.4 in the last quarter of 2019.
The index created by Government Housing Bank’s Real Estate Information Centre recently said that the index had dropped from 48.2 points in the previous quarter, reflecting worries of an economic slowdown and other problems inside and outside the country, such as the baht’s appreciation, the US-China trade war, or the US-Iran conflict.
The sentiment index of developers in the “Listed Companies” group was 44.6 points, down from 50.7 points in the previous quarter.
Meanwhile, the sentiment index of “Non-listed Companies” developers was 44.1 points, dropping from 44.5 and lower than the median point of 50.
The drop in sentiment seen in the indexes reflected the negative view of current trends of property developers.
In addition, the expectations index in the last quarter of 2019 also fell to 55.7 points, from 57.8 points in the third quarter.
However, the expectations index was higher than the median. This meant that most developers expected the government’s stimulus measures to take effect in late November to help businesses recover.
Moreover, it showed that those developers believed the economic situation would get better.
The expectations index of “Listed Companies” was 59.2, down from 60.7 in the third quarter. Non-listed Companies were at 50.4, dropping from 53.5 in the previous quarter.