October Construction Market: Decline in Permits, Groundbreaking, Sales, and Completion

Housing Construction Performance Nationwide in October 2020 (Provided by the Ministry of Land, Infrastructure and Transport)

[Asia Economy Reporter Chunhee Lee] In October, nationwide housing permits, construction starts, sales, and completions all decreased compared to the same month last year.

According to the "Nationwide Housing Construction Performance for October 2020" announced by the Ministry of Land, Infrastructure and Transport on the 3rd, housing permit performance nationwide in October was 33,257 units, down 16.3% from 39,757 units in the same month last year. However, the Seoul metropolitan area and Seoul recorded 20,021 units and 7,074 units respectively, increasing by 136.8% and 29.2% compared to the same month last year. On the other hand, the provinces recorded 13,236 units, down 40.4% compared to the same month last year.

By type, apartment permits in October were 25,039 units, down 20.2% from the previous year and 30.6% from the 5-year average. Non-apartment housing also decreased by 1.9% compared to the previous year and 39.0% compared to the 5-year average, recording 8,218 units.

Housing construction starts in October nationwide were 31,151 units, down 25.5% from 41,791 units in the same month last year. The Seoul metropolitan area showed a large decrease of 28.2% compared to the previous year and 47.7% compared to the 5-year average with 14,791 units. The provinces also decreased by 22.8% compared to the same month last year and 31.5% compared to the 5-year average with 16,360 units. By type, apartments were 22,677 units, down 25.5% from the previous year, and non-apartment housing was 8,474 units, down 0.2% from the previous year.

Sales of multi-family housing also decreased. Nationwide, 27,447 units were sold, down 23.3% from 35,781 units in the same month last year. By region, 12,077 units were sold in the Seoul metropolitan area and 15,370 units in the provinces. By type, general sales were 21,952 units, rental housing 2,076 units, and cooperative member supply 3,419 units. All showed decreases compared to the same month last year.

Housing completions in October nationwide were 26,467 units, down 17.8% from 32,209 units in the same month last year. The Seoul metropolitan area recorded 14,305 units, down 21.0% from the previous year. The provinces decreased by 40.3% to 12,162 units. By type, 20,148 apartments and 6,319 non-apartment housing units were completed.

A Ministry of Land official analyzed, "The housing construction performance in October appears to partly reflect the impact of holidays such as the Chuseok holiday and Hangul Day, as well as the resurgence of COVID-19."

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