The nationwide dwellings business outlook index for housing showed a slight decline. The Seoul metropolitan area rose, but the drop in non-capital regions had an effect.
According to results released on the 16th from a survey by the Korea Housing Institute (KHI) of housing business operators, the nationwide dwellings business outlook index for September was projected at 75.0. That is down 1.0 percentage point (p) from the previous month's 76.0.
The baseline of the nationwide dwellings business outlook index is 100, and exceeding it means a higher share of firms related to the housing business expect conditions to improve. Not exceeding 100 means the opposite.
The Seoul metropolitan area was projected at 83.4, up 16.8p from the previous month. Seoul rose 28.2p (64.1→92.3), Gyeonggi 17.2p (69.2→86.4), and Incheon 4.8p (66.6→71.4).
A Korea Housing Institute official said, "In Seoul, steady preference for prime locations served as a factor for operators to view the housing business environment positively," adding, "With the June 27 measures limiting mortgage loans in the Seoul metropolitan area and regulated zones to 600 million won or less, the upward trend paused briefly in July, but it regained traction in August and the recovery is strengthening."
The official added, "In Gyeonggi Province, Seongnam Bundang, Hanam, Gwangmyeong, and Anyang rose together, supporting the overall strength of the Seoul metropolitan area," adding, "On the other hand, in some areas such as Pyeongtaek, Icheon, and Anseong, an excessive volume of unsold units is delaying the recovery of business conditions. Also, as the government's support measures for unsold homes are focused mainly on non-capital regions, the Seoul metropolitan area could be somewhat neglected, which could act as a factor constraining the recovery in some areas of the province going forward."
Non-capital regions were projected at 73.2, down 4.8p, with metropolitan cities down 5.6p to 76.6 and provincial areas also down 4.1p to 70.7.
Among metropolitan cities, Daejeon rose 9.8p (71.4→81.2), Ulsan 5.7p (80.0→85.7), and Daegu 0.6p (86.9→87.5), while Busan fell 18.2p (81.8→63.6), Sejong 17.3p (92.3→75.0), and Gwangju 14.6p (81.2→66.6).
Among provincial areas, North Gyeongsang rose 8.5p (64.2→72.7), South Gyeongsang 5.5p (71.4→76.9), South Chungcheong 3.6p (71.4→75.0), and South Jeolla 3.0p (63.6→66.6), while North Chungcheong fell 23.4p (90.0→66.6), North Jeolla 18.2p (90.9→72.7), Jeju 7.5p (87.5→80.0), and Gangwon 4.5p (60.0→55.5).
Meanwhile, the nationwide funding procurement index for September was 84.8, up 13.6p from the previous month, and the materials supply index was 93.3, up 0.1p from the previous month.
The Korea Housing Institute explained, "Expectations that interest rates will be lowered and that the government's financial support measures to boost the construction economy will get fully underway appear to have driven the rise in the funding procurement index," adding, "With even the plan to implement the 'regional unsold homes assured repurchase program' formalized, it is stoking expectations for improved funding conditions for operators and easing of short-term liquidity risks. If it gets fully underway going forward, instability in the funding market is also expected to be eased to some extent."
It went on, "The materials supply index rose slightly as materials supply showed a relatively stable trend. As of June, import prices for construction intermediate goods fell, and domestic shipment prices for construction also declined," adding, "Key price indicators such as the producer price index, the construction cost index, and the construction work deflator also posted only slight month-over-month increases, and a generally stable trend continues. While materials prices themselves are staying stable, the gradual rise in the won-dollar exchange rate could have a negative impact on materials supply, so it is necessary to watch the trend going forward."