Bangkok, The confidence index of housing developers in Bangkok and its vicinity in Q2 2024 decreased by 3.1 points. The Real Estate Information Center, Government Housing Bank or REIC reported that the confidence index of housing developers in Bangkok and its vicinity in the second quarter of 2024 was 45.2 points, a decrease from the index in the first quarter of 2024, which was 48.3 points, a decrease of -3.1 points and -2.3 points compared to the same period of the previous year, which was 47.5 points. The confidence level has been below the median of 50.0 points for 6 consecutive quarters, from the first quarter of 2023 to the second quarter of 2024, reflecting that entrepreneurs still have low confidence and have decreased from the original due to concerns about the current business situation. Dr. Wichai Wiratkaphan, Inspector of the Government Housing Bank and Acting Director of the Real Estate Information Center, revealed that entrepreneurs' confidence has decreased in almost every aspect. In particu lar, the area of ??new project launches and/or new phases decreased the most by -9.9 points, down to the level of 49.1 points (from the level of 59.0 points). Next was the area of ??operating results, which decreased by -4.0 points, down to the level of 39.5 points (from the level of 43.5 points). The area of ??employment decreased by -3.7 points, down to the level of 48.7 points (from the level of 52.4 points). The area of ??operating costs (inverse) decreased by -1.4 points, down to the level of 38.9 points (from the level of 40.3 points). The area of ??investment decreased by -1.0 points, down to the level of 47.6 points (from the level of 48.6 points). In every area, there was confidence lower than the level of 50.0 points, except for the area of ??sales, which increased by 1.4 points, up to the level of 47.3 points (from the level of 45.9 points), but was still below the level of 50 points. For the overall picture over the next 6 months, the index is expected to be at 51.4 points, down from the previous quarter, which had an index of 57.3 points, down -5.9 points and -10.7 points compared to the same period last year. However, the index is still higher than the median of 50.0 points, reflecting that entrepreneurs still have confidence in a positive view of the real estate business situation over the next 6 months. However, negative factors affecting the real estate market are the Bank of Thailand's lack of relaxation of LTV measures and the household debt situation that remains above 90 percent of GDP, which are important factors that have caused financial institutions to increase strictness in considering lending, especially for low- to middle-income groups. In addition, the policy interest rate remains high at 2.50 percent, which has a direct impact on the ability to purchase housing. The slow recovery of the Thai economy is an important factor that has caused those who want to purchase housing to have less income, while the current cost of living has increased, resulting in higher expenses but reduced pu rchasing ability. Source: Thai News Agency