Dwellings contractors have a pessimistic outlook for the business economy index in the metropolitan area this month.
According to the Korea Housing Industry Institute (KHI), which conducted a survey of dwelling companies from the 15th to the 25th of last month, the dwelling business economy index for June in the metropolitan area fell by 6.1 points to 98.3 compared to the previous month.
An index above the baseline (100) indicates an optimistic business outlook, while an index below the baseline signifies a prevailing pessimistic outlook.
The metropolitan area index was above the baseline (104.4) last month for the first time in seven months but reverted to a pessimistic outlook within a month. This is likely due to rising concerns about the squeeze in dwelling demand as the total debt repayment ratio (DSR) step 3 will be implemented in the metropolitan area next month. The slow recovery of dwelling demand, except in certain areas like Gwacheon and Bundang, also contributes to the prevailing negative outlook.
However, in the metropolitan area, Seoul (106.2) exceeded the baseline, positively influenced by demand for 'a smart single unit.'
A KHI official noted, "Recently, the flow of demand has been gradually expanding to Nowon and Seongbuk areas through benefiting from land transaction permit areas like Mapo and Seongdong," adding that the improvement in the Seoul index is likely as expectations for economic recovery have formed since the new government's establishment.
The dwelling business economy index fell by 7.2 points (100.0→92.8) in Incheon, decreasing by 0.8 points (96.6→95.8).
The non-metropolitan area was recorded at 92.5, a rise of 6.1 points. The metropolitan cities saw an increase of 3.7 points to 94.6, while provincial areas jumped by 7.8 points to 90.9.
In June, the financing index for contractors was 80.3, while the supply index for materials climbed by 1.0 points and 1.7 points to 97.9, respectively.