Concerns about the shortage of dwellings are deepening, as major indicators of dwelling supply—permit approvals, construction starts, sales, and completions—have shown a consistent decline compared to last year.
According to the 'July dwelling statistics' released by the Ministry of Land, Infrastructure and Transport on the 28th, the cumulative number of dwelling permits across the country as of July this year was 154,571 units, a decrease of 10.0% compared to the same period last year. However, in the metropolitan area, permits increased by 20.7% to 83,838 units compared to the same period last year. In particular, the cumulative figure for Seoul was 26,987 units, up 63.1% from the same period last year. In contrast, during the same period, the provinces saw a 30.8% decline to 70,733 units.
In July, the number of dwelling permits was 16,115 units, a decrease of 42.5% compared to the previous month. During the same period, the metropolitan area saw permits drop by 28.4% to 9,879 units, while the provinces recorded a 56.2% decrease with 6,236 units.
As for construction starts, the cumulative figure for July was 124,547 units, down 13.1% compared to the same period last year. In the metropolitan area, it declined by 3.8% to 76,339 units, while the provinces recorded a decrease of 24.6%, totaling 48,208 units.
The decline in construction starts was even steeper in July. The number of dwellings commenced was 21,400 units in July, down 25.9% from the previous month. During the same period, construction starts in the metropolitan area decreased by 47.6% to 10,708 units, whereas the provinces increased by 26.5% to 10,692 units compared to the previous month.
Completions totaled 231,172 units as of July, which marks a 7.0% decrease compared to the same period last year. In July alone, completions amounted to 25,561 units, a decline of 36.3% from the previous month.
The sales market of dwellings has also felt the chill. The cumulative sales (approvals) in July reached 90,717 units, down 27.7% compared to the same period last year. However, sales for July alone increased by 51.9% to 22,752 units compared to the previous month.
The unsold dwellings, often labeled as troublesome, continued to rise, especially in the provinces. At the end of last month, the number of unsold dwellings across the country reached 27,057 units, an increase of 1.3% compared to the previous month (26,716 units). After 21 consecutive months of increases until May, there was a brief decline in June, but the number has risen again this month.
Eighty-three point forty-nine percent of the troublesome unsold dwellings were located in the provinces. Daegu had the highest number of unsold dwellings after completion at 3,707 units, followed by Gyeongnam (3,468 units), Gyeongbuk (3,235 units), and Busan (2,557 units). In terms of growth rates, Chungbuk recorded the highest increase at 22.7% compared to the previous month, while Ulsan showed a rapid increase at 16.5%.
However, at the end of July, the total number of unsold dwellings across the country was recorded at 62,244 units, down 2.3% compared to the previous month.
Last month, the transaction volume for dwellings was 64,235 cases, a decrease of 13.0% compared to the previous month. In Seoul, the number of dwelling transactions in July totaled 12,783 cases, down 15.5% from the previous month.
The transaction volume for lease agreements in July reached 243,983 cases, an increase of 0.7% compared to the previous month. In the metropolitan area, it decreased by 0.4% to 162,786 cases, while the provinces saw an increase of 3.0% to 81,197 cases.