August Nationwide Housing Market Outlook 'Favorable'... Some Regions Like Daegu 'Cloudy'

[Asia Economy Reporter Ryu Tae-min] As expectations for the housing sales market rise mainly in the Seoul metropolitan area, the nationwide housing sales market has maintained a favorable outlook for nine consecutive months. However, some local regions are showing a noticeable decline, indicating the need for countermeasures.

On the 10th, the Korea Housing Industry Research Institute announced that the August nationwide Housing Sales Sentiment Index (HSSI) forecast dropped by 1.1 points from the previous month to 94.9. The housing sales market in the Seoul metropolitan area continued its strong performance by recording above the baseline (100). Additionally, forecasts for some local metropolitan cities such as Daejeon and Sejong also exceeded the baseline.

The HSSI is an index that comprehensively assesses the sales conditions of housing complexes that are about to be sold or currently on sale from the supplier's perspective. It is surveyed monthly among housing developers, and a value above the baseline of 100 indicates a positive outlook for the housing sales market.

The forecast for Seoul remained the same as last month at 109.5 this month. Incheon recorded 103.3, up 0.5 points from the previous month. The Gyeonggi region rose by 4.4 points to 106.6.

Local metropolitan cities also generally maintained a smooth outlook. Daejeon recorded 105.0, down 5.0 points from the previous month. Busan rose by 8.7 points from last month, reaching the baseline of 100.

However, Daegu fell by 13.4 points from the previous month to 75.8. The forecast for other local areas also dropped by 2.3 points from last month to 89.3. Furthermore, the housing sales market in Gyeongnam (72.2) and Jeju (75.0) is expected to worsen further compared to the previous month.

The Korea Housing Industry Research Institute stated, “It appears to be a time when preemptive measures against sales risks are necessary, especially in regions where supply has been abundant.”

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