October Nationwide Housing Business Outlook 83.3... Slight Improvement from Previous Month

[Asia Economy Reporter Ryu Tae-min] The nationwide housing business outlook index for October showed a slight increase compared to last month.

According to the Korea Housing Industry Research Institute (KHIRI) on the 7th, the October nationwide Housing Business Survey Index (HBSI) outlook was 83.3, up 2.2 points (p) from last month’s 81.1. The HBSI is an indicator that comprehensively reflects housing developers' assessment of the housing business climate. A value above 100 indicates an expectation of business improvement.

The HBSI outlook, which had risen sharply in the first half of this year, peaked at 113.0 nationwide in June and has since hovered at lower levels.

Seoul’s October HBSI outlook was recorded at 92.6, up 1.0p from the previous month. Busan (90.4) and Daejeon (94.1) rose by 14.3p and 17.7p respectively compared to the previous month, recovering to the 90-point range. Gwangju (87.5) and Ulsan (81.8) also showed improvements with increases of 22.8p and 8.5p respectively. Daegu (68.0) and Chungbuk (66.6) showed the lowest outlooks nationwide.

A KHIRI official explained, "With the government’s push for policies to revitalize urban housing supply and Seoul’s regulatory normalization policies centered on redevelopment projects becoming visible, expectations for the housing business climate are forming strongly and being maintained."

This month, redevelopment and reconstruction order outlooks recorded 91.5 and 91.2 respectively, maintaining last month’s levels.

The outlook for public land sites was 85.9, down 4.2p from the previous month. However, there is potential for an increase in order expectations as some public land site district plans in the metropolitan area have recently been approved.

The outlooks for material supply and labor supply in October rose by 9.8p and 8.2p respectively compared to the previous month. On the other hand, financing fell by 9.6p from the previous month.

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