Growing Optimism for Housing Market Improvement in the New Year... "Increased Need for Housing Supply"

Housing Industry Research Institute Announces Housing Business Climate Index Forecast

[Image source=Yonhap News]

[Asia Economy Reporter Onyu Lim] Expectations for improvement in the housing business market have increased, centered on the Seoul metropolitan area in the new year.

The Korea Housing Industry Research Institute (KHIRI) announced on the 7th that the nationwide Housing Business Survey Index (HBSI) forecast for January recorded 85.2. This is an increase of 11.2 points compared to December of last year.

The HBSI is an indicator that comprehensively assesses the housing business market from the supplier's (construction companies') perspective, based on a survey of about 500 member companies belonging to the Korea Housing Association and the Korea Housing Builders Association. If the forecast exceeds the baseline of 100, it means that more construction companies responded that the market will improve than those who said it would not, and if it falls below 100, it means the opposite.

A KHIRI official analyzed, "Although the novel coronavirus infection (COVID-19) is spreading again recently and the government's regulatory policy stance is maintained, prices have surged not only in sales but also in monthly rent and jeonse (long-term deposit lease), and overheating continues mainly in the subscription market, increasing the need for new housing supply."

The HBSI forecast for Seoul this month is 98.0, up 12.9 points from the previous month. As public-led projects such as small-scale maintenance projects and public redevelopment projects, which the government is strongly promoting, become more visible, it seems that expectations for improvement in the housing business market are forming mainly in areas where conditions to promote these projects exist.

In addition, Busan (86.6) and Daegu (90.9) rose by 12.5 points and 14.3 points respectively compared to the previous month, and Ulsan (95.0) also maintained the 90-point level.

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