By THE NATION
The REIC said the index fell to 42.6 as of the second quarter of 2020, from 44.4 in the same period last year.
“The current situation index has been on the downward trend for five consecutive quarters now,” said Wichai Wiratkaphan, REIC director. “The reason behind this, besides the Covid-19 situation, is the use of macroprudential measures by the Bank of Thailand that requires commercial banks to employ the LTV [loan to value] practice to limit the loan granted to home buyers. The LTV has greatly reduced customers’ purchasing power while the supply of new properties is still climbing.”
Wichai added that property developers who are not listed on the Stock Exchange of Thailand tended to have less confidence in the current situation compared to their listed counterparts, due to the different size of capital and the ability to take risks.
“The current situation index among listed companies is at 45.7, increasing from 41.7 in the previous quarter, while the index among non-listed companies is at 38.0, decreasing from 40.5 in the previous quarter,” he added.
The REIC also revealed the expectations index, which reflects the confidence of property developers in the next six months at 51.8, slightly increasing from the previous quarter at 51.5, and above the median of 50.
“This indicates that property developers are positive that the market will improve in the second half of the year, thanks to the improving Covid-19 situation and the government’s easing of lockdown measures,” he said.