Seoul's apartment move-in outlook index recovered to 100 for the first time in three months. The apartment move-in outlook index is a survey of dwellings business operators that gauges whether apartment buyers are expected to pay the remaining balance and move in as scheduled. A reading of 100 or higher indicates a positive outlook, while below 100 indicates the opposite.
Korea Housing Institute said on the 13th that Seoul's apartment move-in outlook index for January was tallied at 100. The index fell from 100 in Oct. last year to 85.2 in Nov. and 76.6 in Dec., but rebounded this month. Gyeonggi rose from 70.9 in the previous month to 87.5, and Incheon climbed from 59.0 to 80.7.
The institute analyzed that "the move-in outlook, which fell sharply due to strong lending regulations implemented in Oct. last year, improved as the perception took hold that the regulatory effect was limited despite the regulations, due to continued apartment price gains and a supply shortage." It added, "As this year's supply of new apartments in Seoul is projected to decrease by 31.6% from last year, the shortage of newly built apartments is expected to intensify, which appears to have driven a rise in move-in outlooks across the greater Seoul area."
As transaction volume increased in core areas of major metropolitan cities and provinces, the move-in outlook index rose. Gwangju climbed from 53.8 in Dec. last year to 76.4 this month, and Daegu (68.1→87.5), Busan (80.0→90.0), Daejeon (91.6→93.7), and Sejong (90.9→100.0) also saw their move-in outlook indexes rise. Ulsan (100.0→100.0) continued to post a favorable move-in outlook.
Among provinces, South Jeolla (66.6→77.7), South Chungcheong (66.6→76.9), Gangwon (62.5→70.0), North Gyeongsang (80.0→86.6), North Chungcheong (71.4→77.7), and Jeju (58.3→60.0) rose, while South Gyeongsang (100.0→100.0) was flat. In contrast, North Jeolla (87.5→81.8) fell.
The institute analyzed that "the rise in the move-in outlook index across provincial regions was influenced by expectations for resolving unsold units, as from this year a system has taken effect that grants up to a 50% reduction in acquisition tax on unsold apartments after completion in population-declining areas outside the greater Seoul area (revisions to the Local Tax Act and the Act on Restriction on Special Cases Concerning Local Taxation)."