Jusan-yeon "Positive Outlook for Sale Market"... Nationwide HSSI Forecast at 99.5

[Asia Economy Reporter Ryu Taemin] Expectations that conditions for the housing sales business will improve are rising nationwide. With strong sales demand in Seoul and the metropolitan area combined with growing anticipation for non-regulated areas, positive forecasts for the housing sales market appear to be spreading across the country.

On the 11th, the Korea Housing Industry Research Institute (KHIRI) announced that the May nationwide Housing Sales Sentiment Index (HSSI) forecast rose 6.9 percentage points from the previous month to 99.5. The HSSI is an indicator compiled by surveying housing developers about their outlook on the housing sales market. A figure below the baseline of 100 indicates a negative market outlook.

Seoul recorded 114.0, up 8.2 percentage points from last month, driven by expectations of eased regulations on reconstruction and redevelopment. This is the first time in 32 months since September 2018 that the forecast exceeded 110. Incheon rose 4.7 percentage points to 109.7, while Gyeonggi Province fell slightly by 0.5 percentage points to 112.2 compared to the previous month.

Forecasts for metropolitan cities and other provinces also rose, with all regions recording figures above the 90 mark. Notably, Busan reached 106.6, surpassing the baseline for the first time in 17 months since December 2019, reflecting optimism about the housing sales market. Kwon Youngseon, a senior researcher at KHIRI, said, “The positive outlook for the housing sales market has spread nationwide, fueled by sales demand in Seoul, the metropolitan area, metropolitan cities, and growing expectations for non-regulated areas.”

The forecast for May housing supply volume fell 3.8 percentage points from the previous month to 108.8 but has remained above the baseline for four consecutive months. Senior researcher Kwon explained, “Due to demand for new housing, the government is actively promoting supply policies such as additional designation of public land, and expectations for eased regulations on redevelopment projects and expanded private-led policies seem to have improved developers’ willingness to proceed with projects.”

The forecast for unsold housing HSSI was 82.6, indicating that concerns about unsold inventory during project implementation are expected to be low.

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