Last year, the number of housing starts for private dwellings was reported at over 235,000 units, marking the second lowest level on record.
According to data compiled by Real Today based on the housing construction performance statistics released by the Ministry of Land, Infrastructure and Transport on 16th, the number of housing starts for private dwellings (excluding rental units) last year was recorded at 235,171 units. This is 160,000 units smaller than the average number of housing starts (397,044 units) over the past 10 years from 2015 to last year. Although it slightly increased compared to the all-time low housing start figure recorded in 2023 (204,794 units), it remains at a low level.
Looking at the housing start performance for private dwellings over the past decade, there were ▲62,497 units in 2015 ▲56,400 units in 2016 ▲42,506 units in 2017, showing a gradual decline. This fell to 347,479 units in 2019. However, it rebounded afterward, rising to 468,952 units in 2021, but declined again after 2022. The year 2022 recorded 318,680 units, and 2023 marked the lowest level since the Ministry of Land, Infrastructure and Transport began collecting statistics in 2011, with 204,794 units.
The number of housing starts for private dwellings also remained low in January of this year, totaling 5,819 units.
In general, housing supply progresses in the order of permitting, construction, sale, and occupancy. Therefore, a decrease in the number of housing starts leads to a shortage of occupancy volumes 3 to 4 years later. Notably, in the overall housing supply market, private dwellings account for the majority, so a reduction in private dwelling volumes also affects the housing sales market.
Park Won-gap, chief real estate expert at KB Kookmin Bank, noted, "Supply is a crucial factor that influences housing market trends, and among them, private dwellings are closely related to the purchasing psychology of buyers due to issues like ownership, thus can impact the sales market."