Jeonse Instability Leads to Nationwide Apartment Move-in Business Conditions Index Reaching Highest Level

Jusan-yeon "Most indices rise due to Jeonse supply disruption despite delays in existing home sales"

December 2020 HOSI Outlook

[Asia Economy Reporter Lim On-yu] Due to disruptions in the jeonse supply and a decrease in move-in volumes, anxiety has increased, leading the nationwide Apartment Move-in Business Conditions Index (HOSI) to reach its highest level since the survey began.

According to the Korea Research Institute for Human Settlements on the 16th, the nationwide HOSI recorded a performance score of 96.2 last month and a forecast score of 96.3 this month, surpassing the 90-point mark for the first time since the related survey started in June 2017. The increase compared to the previous month was 25.5 points and 18.0 points, respectively.

HOSI is an indicator that comprehensively assesses the move-in conditions of apartment complexes that are about to move in or currently moving in from the supplier's perspective. A score of 100 is the baseline; scores above 100 indicate favorable move-in conditions, while scores below 100 indicate unfavorable conditions.

By region, Sejong's forecast for this month (126.6) showed the highest score since the survey began. Additionally, Gwangju (109.5), Incheon (109.0), Ulsan (100.0), Jeonnam (100.0), and Gyeongnam (100.0) recorded scores above 100, while Gyeonggi (97.7), Daegu (96.0), Seoul (95.8), Daejeon (94.7), Jeonbuk (93.7), and Gangwon (91.6) recorded scores in the 90s.

An official from the Korea Research Institute for Human Settlements explained, "As disruptions in the jeonse supply and a decrease in move-in volumes have increased market anxiety, the number of people willing to move in has risen," adding, "The December forecast rose sharply, centered on Sejong, major metropolitan cities, and non-regulated local areas."

The scheduled move-in volume for this month is a total of 32,653 households across 63 complexes nationwide, an increase of 6,558 households compared to last month's volume (25,995 households).

Large complexes with over 1,000 households are scheduled to move in this month in Pyeongtaek, Gwacheon, and Gimpo in Gyeonggi Province, Seongbuk and Nowon districts in Seoul, and Dong-gu in Daejeon.

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