The threat of flooding in Greater Bangkok and upcountry took a toll on investor confidence last month, but most developers still believe market conditions will recover early next year, boosted by higher purchasing power and the growing economy.
The housing developers' sentiment index, as surveyed by the Real Estate Information Center (REIC), came in at 51.3 points in the third quarter, down from 55.8 in the second quarter and 56.2 in last year's third quarter.
Listed developers' current-situation index was 54.9 points, down from 62.8 in the second quarter, while the non-listed developers' index was 47.8, down from 48.8.
"The third-quarter index declined from the second quarter but remained above the median of 50 points, meaning developers' confidence remained positive but not as strong as at midyear on concerns about heavy rains in Greater Bangkok and new flooding upcountry," said Samma Kitsin, director-general of the REIC.
The third quarter's expectations index for the following six months was 69.6 points, up from 67.9 in the second quarter and 68.6 in last year's third quarter.
For listed and non-listed developers, the expectations index rose to 75 and 64.1 points, respectively, from 73.5 and 62.3 in the second quarter.
"Expectations until March 2013 rose on developers' hopes for the future. They believe purchasing power will resume in next year's first quarter thanks to salary increases and year-end bonuses as well as the improved economic situation."