The outlook for the dwellings business in Seoul and the metropolitan area worsened significantly in August. This is attributed to the impact of the real estate measures on June 27, which contained high-intensity loan regulations.
The Korea Housing Institute noted on the 19th that as a result of a survey conducted from the 16th to the 25th of last month targeting housing businesses, the outlook index for the dwellings business in August was recorded at 76.0, falling by 24.0 points from the previous month. An index above the baseline of 100 indicates optimistic expectations, while a value below 100 signifies a dominant negative outlook.
The metropolitan area saw a significant drop from 123.7 in the previous month to 66.6, a decrease of 57.1 points. Seoul fell from 135.1 to 64.1, dropping 71.0 points to fall below half compared to the previous month. Gyeonggi decreased by 53.0 points from 122.2 to 69.2, while Incheon dropped by 47.1 points from 113.7 to 66.6.
Compared to the same month last year, the nationwide figure is at -10.0 points, the metropolitan area is at -41.7 points, and Seoul is at -55.9 points, indicating an increase in negative economic outlook.
A representative from the Korea Housing Institute said, "The implementation of the June 27 loan regulations has sharply dampened buying sentiment in the metropolitan area, leading to a significant decline in the index this month," and added, "As the threshold for financing increases and the possibility of additional regulations rises, uncertainty has intensified, prompting buyers to delay their decisions on dwelling purchases, and homeowners also exhibit a passive attitude toward price adjustments."
The outlook for non-metropolitan areas was projected to fall by 16.9 points to 78.0. The metropolitan cities recorded a decrease of 16.6 points to 82.2, while the provincial areas dropped by 17.1 points to 74.8. The national funding index for August is projected to decline by 21.6 points from the previous month to 71.2, and the materials supply index is expected to fall by 6.8 points to 93.2.