As dwelling prices in the greater Seoul area continue to rise, housing developers' business outlook appears to have improved.
The Korea Housing Institute said on the 15th that its survey of housing developers found the January housing business outlook index rose 5.8 points (p) from a month earlier to 80.5.
The greater Seoul area came in at 95.4, up 10.9p from the previous month, while non-capital regions were tallied at 77.3, up 4.8p. An index above the baseline of 100 means more firms expect the housing business to improve.
In the greater Seoul area, Gyeonggi rose 13.1p from the previous month to 92.5. Seoul also climbed 12.3p to 107.3, and Incheon was tallied at 86.6, up 7.3p.
The institute said, "This month's housing business outlook index for the greater Seoul area rose considerably as the overall upward price trend in the housing market continued," adding, "In Seoul, complexes with expectations for redevelopment and areas adjacent to Gangnam such as Dongjak and Seongdong showed strength, driving the increase in the index."
It continued, "With the number of apartment move-ins in Seoul in 2026 expected to be 16,412 households, down about 48% from 2025, reduced supply and expectations for price increases centered on core areas of Seoul are intersecting, keeping developers' market outlook relatively positive," and "As demand continues in preferred areas such as Suji in Yongin and Bundang in Seongnam, and interest expands in non-regulated areas such as Pyeongtaek, developers' sentiment appears to have improved across the Gyeonggi region."
Meanwhile, non-capital regions were found at 77.3, up 4.8p from the previous month. Metropolitan cities were tallied at 88.9, up 10.5p, and provincial areas were 68.7, up 0.6p. Among metropolitan cities, Busan rose 22.9p, Daegu 13.1p, Daejeon 8.8p, Ulsan 7.5p, Sejong 7.2p, and Gwangju 2.9p, in that order.
Among provincial areas, Gangwon rose 12.1p, North Chungcheong 3.6p, North Jeolla 2.3p, and South Gyeongsang 1.6p, with larger increases.
The institute said, "As regulations in the greater Seoul area tighten, market conditions are gradually improving, with sales prices rebounding and transactions increasing, mainly in some regions such as Busan, Ulsan, and Sejong," adding, "Given that there are still many unsold dwellings after completion in the provinces, it is difficult to see the recovery spreading across all non-capital regions."
The January nationwide financing index was 89.0, up 20.2p from the previous month. The materials supply index was forecast at 96.8, up 2.2p.