Property Developer Confidence Index Hits Record High 57.8

[george]

Property developer confidence index hits record high 57.8

BANGKOK: -- Thailand’s property developer confidence index reached a record high of 57.8 in the fourth quarter of 2009, boosted by an increase in total sales, employment, and the launch of new projects, according to the Bangkok-based Real Estate Information Center.

Government Housing Bank president Kan Prachuabmoh, acting in his capacity as chairman of the centre, said the index rose from 55.8 in the previous quarter and 36.3 in the same quarter the year before.

Sales, employment and project launches increased, particularly in December last year when property developers accelerated project construction, consumers rushed to buy in response to sales promotion, and commercial banks stepped up lending because state-supported ownership fees and mortgage reductions were due to expire.

In addition, at that time property developers needed to speed the activities to close their balance sheets

He said the confidence index in the next six months will edge up slightly showing that property developers are confident the property sector will improve in the future as new developers gradually inaugurate new projects.

However, he allowed that spate of anti-government protests, fuel price fluctuations, and higher steel prices due to the substantial demand for steel in China remained key negative factors that need to be closely watched and understood.

-- TNA 2010-01-16

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[seaeagle]

With words like "employment" and a reference to bank lending / mortgages, this article seems mostly to refer to domestic Thai purchases. Nothing here to suggest an immediate resurrection of interest from foreigners.

[BEENTHEREDONETHAT]

When I want the straight scoop on how real estate is doing the last person I would ask would be a realtor. On second thought make that someone in the government involved in housing sales.

spelling error corrected BTDT

Edited January 16, 2010 by BEENTHEREDONETHAT

[Pakboong]

The BOT 4th quarter price index has been on hold for some reason. I was expecting it to drop to an all time low but for some reason, no release of the data. It could well drop below 100 which is the 1991 standard. This announcement adds to the mystery of it all. No reason to hold the release if the news is good.

[trogers]

I stop reading after seeing this - bookings = sales.

A report on real estate that does not differentiate bookings from sales, is not worth reading.