September Nationwide Housing Market Outlook 81.1... Expansion of Contraction Expected Nationwide

[Asia Economy Reporter Ryu Tae-min] The outlook for the housing business economy is worsening nationwide. Negative forecasts have increased even in the metropolitan area and major provincial cities, which had maintained a favorable trend, leading to a decline in the September nationwide Housing Business Survey Index (HBSI) outlook.

On the 2nd, the Korea Housing Industry Research Institute (KHIRI) announced that the nationwide HBSI outlook for September dropped 4.7 points from the previous month to 81.1. The HBSI is an index that comprehensively reflects housing business operators' assessment of the housing business economy. A value above 100 indicates an expectation of improvement in the business.

The September HBSI outlook for the metropolitan area was recorded at 92.1, down 16.8 points from the previous month. Seoul fell 20.9 points to 91.6. Gyeonggi and Incheon also fell below the baseline with 91.8 and 92.8, respectively.

In major provincial cities, negative forecasts for housing business conditions expanded. Busan (76.1) and Gwangju (64.7) dropped about 30 points compared to the previous month. Daejeon (76.4) and Ulsan (73.3) also fell more than 20 points, marking the lowest outlooks since the beginning of the year. Daegu (57.6) has declined for three consecutive months and remains near the 50-point mark.

The actual HBSI for last month was 84.0, down 4.3 points from the previous month. The perceived economic gap last month also recorded a lower actual value than the forecast. The redevelopment order outlook for this month was 90.1, down 7 points from the previous month. The reconstruction order outlook was 93.3, down 3.8 points from the previous month.

A KHIRI official said, "Since the government's commitment to revitalizing housing supply remains strong and the housing business economy outlook had been above the baseline until last month, it is premature to interpret this month's decline as a trend reversal." He added, "Given the increasing volatility and uncertainty in the housing market, it is necessary to strengthen market monitoring."

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