National Housing Market Outlook, Performance, and Occupancy Rates All Decline

April HOSI Forecast 64.9
March Actual 54.2 Marks Lowest Since Survey Began

[Asia Economy Reporter Lim On-yu] As the novel coronavirus infection (COVID-19) spreads, the nationwide Apartment Housing Occupancy Sentiment Index (HOSI) forecast, actual figures, and occupancy rates have all declined simultaneously.

According to the Korea Research Institute for Human Settlements on the 13th, the actual nationwide Housing Occupancy Sentiment Index for last month was 54.2, marking the lowest point since the survey began in June 2017. The occupancy rate for the same month (74.4%) has fallen for four consecutive months since November last year, and the nationwide HOSI forecast for April (64.9) dropped by 4.8 points compared to the previous month.

HOSI is an index that comprehensively assesses the occupancy conditions of apartment complexes that are about to be occupied or are currently being occupied from the supplier's perspective. A score of 100 is the baseline; a score above 100 indicates favorable occupancy conditions, while a score below 100 indicates unfavorable conditions.

Regarding the actual figures from the previous month, Jeonbuk (38.8), Chungbuk (35.7), and Jeju (30.0) recorded scores in the 30s for the first time since the survey began.

Additionally, this month, the HOSI forecast for Daegu, the region most affected by COVID-19, was 56.6. This is the first time the figure has fallen to the 50s.

A representative from the Korea Research Institute for Human Settlements stated, "Due to the spread of COVID-19, it has become difficult to sell existing homes, leading to an increase in unoccupied units and delays in occupancy," and suggested, "It is necessary to consider policy supplements that can mitigate the risk of unoccupied units, such as temporary grace periods for one household owning two homes."

The scheduled occupancy volume for April is a total of 21,045 households across 39 complexes nationwide. Large complexes with over 1,000 households are scheduled to be occupied in one complex each in Cheonan, Chungnam; Gwacheon, Gyeonggi; and Changwon, Gyeongnam.

This content was produced with the assistance of AI translation services.