The apartment move-in outlook index rose in September. The move-in outlook index is an indicator that forecasts whether people who bought apartments on pre-sale will be able to pay the remaining balance as scheduled and move in. A reading below 100 indicates a negative outlook for the move-in market, while a reading above 100 indicates a positive outlook is dominant.
On the 11th, the Korea Housing Institute said the September move-in outlook index for Seoul apartments, based on a survey of housing project operators belonging to the Korea Housing Association, the Housing Constructors Association, and others, came in at 102.7. That is up 26.4 points (p) from the previous month's 76.3. After hitting 121.2 in July, the move-in outlook index fell due to the impact of the June 27 loan regulations and then turned upward again.
In the greater Seoul area outside the capital, Incheon (70.3→82.1) and Gyeonggi (81.8→88.2) also showed upward trends. The nationwide figure was 82.0, up 6.3p from the previous month.
The institute interpreted, "Despite the regulations, the preference for new builds continues, while the construction industry is holding off on new pre-sale plans due to worsening business conditions. As serious industrial accidents have been recurring at construction sites recently, the passage of the so-called Yellow Envelope Act has fueled concerns that dwelling construction schedules will be delayed and construction costs will rise, further shrinking new supply."
Meanwhile, the nationwide apartment move-in rate in August was 67.4%, up 3.5 percentage points from the previous month. In the greater Seoul area it fell by 1.4 percentage points, but in the five major metropolitan cities it rose by 4.1 percentage points, and in other regions it rose by 5.0 percentage points.