All Indicators for May Housing Market, Sales Market, and Move-in Performance Show a 'Cheong Sign'

National Housing Business Sentiment Index at 101.2... Surpasses Baseline for the First Time in 47 Months
Expectations Rise for Easing of Reconstruction and Redevelopment Regulations
Outlooks for Sale and Move-in Also Increase Simultaneously

[Asia Economy Reporter Ryu Taemin] Expectations for deregulation of reconstruction and redevelopment and expanded supply have led to a rebound in major housing market outlooks among construction companies.

According to the Korea Housing Industry Research Institute (KHIRI) on the 13th, the nationwide Housing Business Survey Index (HBSI) outlook for May rose by 10.6 points from the previous month to 101.2. This is the first time in 47 months since June 2017 that the outlook has exceeded the baseline (100). This is attributed to the increased possibility of housing business expansion due to the activation of small-scale housing maintenance projects and expectations for additional designation of local public housing sites. The HBSI is an index compiled by surveying construction companies on their housing business outlook. A figure above the baseline of 100 indicates a positive market outlook.

Regionally, Seoul showed a notable increase in its outlook. The HBSI outlook for Seoul in May was 116.6, surpassing the 110 mark for the first time in 34 months. This is interpreted as reflecting expectations for deregulation of redevelopment and reconstruction projects following the inauguration of Seoul Mayor Oh Se-hoon.

Expectations that business conditions will improve are also rising nationwide in the sales market. The nationwide Housing Sales Survey Index (HSSI) outlook for May recorded 99.5, an increase of 6.9 points from the previous month. In particular, Seoul recorded 114.0, up 8.2 points from last month, due to expectations for deregulation of reconstruction and redevelopment. This is the first time in 32 months that the outlook has exceeded 110.

The outlook for move-in performance is also optimistic. The Move-in Outlook Survey Index (HOSI) for this month recorded 95.7, 2.7 points higher than the previous month. By region, Daegu (106.2), Gyeongnam (104.7), Gyeonggi (104.1), and Gangwon (93.3) ranked highest. A KHIRI official explained, "As housing prices continue to rise and the supply of move-in units decreases, market anxiety has increased, leading to more people intending to move in," adding, "Optimistic outlooks are particularly growing around the Seoul metropolitan area and major provincial cities."

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