July Housing Market Outlook: Favorable Conditions Centered on Seoul and the Capital Area
[Asia Economy Reporter Tae-min Ryu] The July housing move-in market outlook has declined compared to the previous month but still shows a favorable trend.
On the 20th, the Korea Housing Industry Research Institute (KHIRI) announced that the nationwide Housing Occupancy Situation Index (HOSI) forecast for July was 93.8, down 10.6 points from last month. HOSI is an indicator that comprehensively assesses the move-in conditions of apartment complexes that are about to be occupied or are currently being occupied, as judged by housing suppliers. A value above the baseline of 100 indicates favorable move-in conditions, while a value below suggests deterioration.
By region, Seoul (104.8), Incheon (100.0), Gyeonggi (104.4), Daegu (100.0), Daejeon (111.1), and Sejong (100.0) exceeded the baseline of 100. Busan (95.2), Gwangju (95.0), Gyeongnam (94.4), Chungnam (94.1), Jeonbuk (94.1), Jeonnam (94.1), and Ulsan (93.7) also recorded scores above the 90 line, indicating that a favorable move-in market is expected to continue.
On the other hand, some local areas such as Gangwon, Chungbuk, and Jeju showed forecasts in the 70-80 range this month, increasing concerns about a worsening move-in market. KHIRI stated, “With loan regulations tightening from this month, difficulties in securing final payment loans and other housing funds may lead to delays in move-ins or increased risks of non-occupancy.”
Last month’s HOSI actual figure was 94.6, down 6.6 points from the previous month but still above 90, maintaining a favorable atmosphere. The forecast by company size last month showed large companies at 91.4 and mid-sized companies at 95.8. Regardless of company size, the figures declined compared to the previous month.
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KHIRI pointed out, “As the gap in the move-in market between regions is becoming more pronounced, it is necessary to strengthen monitoring of the move-in market in some local areas and find measures to manage the risk of non-occupancy.”
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