March Housing Permit and Sales Performance 'Worst'

[Asia Economy Reporter Yoo In-ho] Last month, nationwide housing permits and sales performance decreased compared to the same month last year. It is analyzed that the economic uncertainty caused by the novel coronavirus infection (COVID-19) is still acting as a negative factor in the real estate market.

According to the "March 2020 Nationwide Housing Construction Performance" announced by the Ministry of Land, Infrastructure and Transport on the 29th, last month's nationwide housing permit performance was 33,648 households, down 33.8% from the same month last year (50,863 households). The metropolitan area and Seoul led the nationwide decline in permit performance, decreasing by 50.9% and 69% respectively compared to the same month last year.

By type, last month's apartment permit performance was 24,643 households, down 34.4% compared to last year and 28.7% compared to the 5-year average. Non-apartment housing also decreased by 32.4% compared to last year and 45.2% compared to the 5-year average, with 9,005 households.

Sales performance of multi-family housing was 12,252 households nationwide, down 52.8% from 25,944 households in the same month last year. Seoul recorded 420 households, down 80.3% compared to last year and 87.1% compared to the 5-year average. The metropolitan area had 7,897 households, down 30.9% compared to last year and 58.5% compared to the 5-year average.

The provinces recorded 4,355 households, down 70.0% compared to last year and 74.0% compared to the 5-year average. By type, general sales accounted for 9,451 households, rental housing 150 households, and cooperative member supply 2,651 households.

March housing completion performance was 31,348 households nationwide, down 15.8% from 37,233 households in the same month last year. The metropolitan area recorded 16,687 households, down 21.1% compared to last year but up 12.8% compared to the 5-year average. The provinces recorded 14,661 households, down 8.9% compared to last year and 24.2% compared to the 5-year average.

By type, 23,512 apartments and 7,836 non-apartment houses were completed. Apartment completions decreased by 19.3% compared to the same period last year but increased by 4.8% compared to the 5-year average. Non-apartment housing decreased by 3% compared to last year and 33% compared to the 5-year average.

On the other hand, last month's housing start performance was 36,014 households nationwide, up 26.3% from 28,510 households in the same month last year. The metropolitan area recorded 20,910 households, up 0.6% compared to last year but down 3.3% compared to the 5-year average.

The provinces recorded 15,104 households, up 21.5% compared to the same month last year. However, it decreased by 30.6% compared to the 5-year average.

By type, apartments accounted for 26,108 households, up 49.0% compared to last year but down 8.8% compared to the 5-year average. Non-apartment housing was 9,906 households, down 9.9% compared to last year and 41% compared to the 5-year average.

The Ministry of Land, Infrastructure and Transport expects that since the impact of COVID-19 spread has been affecting the housing construction market since January, if the real economy recession continues to expand, it will have a negative impact on housing permits and supply in the future.

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