Developer confidence in Greater Bangkok housing projects hit its third-lowest level in the second quarter of 2025. The Housing Developer’s Sentiment Index stood at 39.3, down 2.7 points from the first quarter, according to the Real Estate Information Center (REIC).
The only two periods with weaker readings were the 2011 floods, which recorded 37.1, and the 2008 global financial crisis, which logged 37.3. The latest figure also dropped below the 41.2 mark recorded during the start of the pandemic in early 2020. Since the survey began in late 2007, the index has dipped under the neutral 50-point line 28 times.
A reading above 50 signals confidence, while a score below that line points to a negative market outlook. The index had improved to 50.4 in the last quarter of 2024 but then slid to 42.0 in the first quarter of 2025 before dropping further in the second quarter.
High household debt, tighter lending rules, unclear government economic policies, global tensions, and new U.S. tariffs all dragged sentiment down. Investment sentiment saw the sharpest fall, dropping 11.2 points to 37.7. Confidence in launching new projects fell 5.3 points to 40.8. Employment sentiment decreased to 43.1, sales sentiment slipped to 37.9, and business performance confidence edged lower to 34.5.
In contrast, sentiment towards operational costs rose to 42.1, up 4.7 points, showing growing concerns over rising expenses.
The expectations index for the next six months came in at 50.3, down from 52.3 in the previous quarter. Despite the decline, it stayed above 50, showing cautious optimism. Government measures such as lower transfer and mortgage fees for homes priced up to 7 million baht and eased loan-to-value rules, both effective until mid-2026, helped maintain this outlook.
Still, expectations across most areas weakened. Sales outlook fell 4.3 points to 57.3. Confidence in new project launches dropped 3.4 points to 50.2. Investment expectations slipped to 51.4, business performance to 54.7, and employment to 48.8. Sentiment about operational costs edged higher to 39.5, reflecting continued cost pressures.
