The outlook index for apartment sales in all cities and provinces nationwide has fallen below the benchmark, indicating a rapid deterioration in the apartment sales market.
According to a survey conducted on the 9th by the Korea Housing Industry Research Institute (KOHIRI) targeting housing developers, the outlook index for apartment sales in January was calculated at 71.4, down 10.6 points from last month (82.0). The metropolitan area showed a decrease of 6.6 points to 76.8 compared to last month (83.4), while non-metropolitan regions recorded a drop of 11.4 points to 70.3 from last month (81.7).
The apartment sales outlook index is a comprehensive assessment tool used by suppliers to evaluate the conditions of complexes scheduled for or currently undergoing sales. A figure above 100 indicates that more members view the market outlook positively, while a figure below 100 indicates the opposite.
Regionally, in the metropolitan area, a decline was predicted for Gyeonggi (83.3→67.6) and Incheon (77.4→73.3), while Seoul remained unchanged at 89.5 compared to the previous month.
In non-metropolitan areas, Jeollabuk-do showed an increase of 10.7 points (75.0→85.7) and Chungcheongbuk-do had a rise of 6.0 points (66.7→72.7). However, declines were expected in Daegu by 32.0 points (96.0→64.0), Daejeon by 29.5 points (89.5→60.0), Sejong by 25.0 points (100.0→75.0), Gwangju by 22.8 points (89.5→66.7), Jeollanam-do by 20.8 points (83.3→62.5), Gyeongsangnam-do by 10.2 points (78.6→68.4), Gyeongsangbuk-do by 10.0 points (83.3→73.3), Busan by 9.3 points (77.3→68.0), Gangwon-do by 5.0 points (80.0→75.0), Ulsan by 4.9 points (78.6→73.7), Chungcheongnam-do by 4.7 points (71.4→66.7), and Jeju by 2.8 points (75.0→72.2).
KOHIRI noted, “The significant drop in the apartment sales outlook index for two consecutive months appears to be influenced by the severely tightened housing mortgage regulations since late August last year, the economic downturn expected this year, and the arising anxiety from the recent martial law and impeachment situation.”
Additionally, the outlook index for sales prices in October appeared at 101.4, down 2.9 points from last month (104.3). KOHIRI explained that this was influenced by the recovery of supply chains and a decrease in apartment construction volume, leading to reduced demand for construction raw materials and labor.
The outlook index for sales volume was projected at 77.5, down 13.8 points from the previous month (91.3). The unsold volume outlook index recorded 102.8, showing an increase of 7.3 points from last month (95.5).
A KOHIRI official stated, “The decline in the sales volume outlook index is attributed to the drastic decrease in permit volumes over the past three years, alongside the effects of stricter mortgage regulations, concerns over economic recession, and the impeachment situation. Despite a reduction in sales volume, it appears that buyer sentiment is being suppressed due to strong mortgage regulations and an unstable political situation.”