"House Prices Will Rise Further"... May Housing Sales Consumer Sentiment Index "Turns Up"

Housing Market Consumer Sentiment Index Nationwide in May 2020 (Provided by Korea Research Institute for Human Settlements)

[Asia Economy Reporter Chunhee Lee] Last month, the sentiment of demanders in the nationwide housing sales market shifted to an upward phase.

According to the "May 2020 Real Estate Market Consumer Sentiment Survey" released by the Korea Research Institute for Human Settlements on the 16th, the consumer sentiment index for the nationwide housing sales market last month was 118.5, rising 10 points from 108.5 in the previous month. The institute considers the consumer sentiment index above 115 as an upward phase, indicating a change from a stable phase to an upward phase.

The consumer sentiment index in the metropolitan area rose 9.7 points from the previous month to 120.6, and the non-metropolitan area also showed a balanced increase, rising 10.1 points from 106.5 in April to 116.6 last month, turning the entire country into an upward phase.

By region, Chungbuk, where favorable conditions such as the recent attraction of the "Bangsa-gwang Accelerator" in Cheongju City have continued and housing prices surged sharply, showed the largest increase with a 26.5-point rise compared to the previous month. Sejong (21.7 points) and Seoul (16.5 points) followed. In contrast, Jeju was the only region to show a decline, dropping 5.1 points from the previous month.

In particular, last month, not only housing but the entire real estate market including land showed an upward trend in consumer sentiment nationwide, regardless of metropolitan or non-metropolitan areas. The consumer sentiment index for the entire real estate market, combining housing and land, was 109.8 last month, up 6.7 points from the previous month.

The housing market, combining sales and jeonse (long-term lease), rose 7.0 points from April to 111.6, and the housing jeonse market jumped 4.1 points from the previous month to 104.8. The land market also increased by 4.6 points from the previous month to 93.7. However, since the sentiment index remained below 95, it was still in a downward phase.

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