February Nationwide Housing Market Conditions Worsened Compared to January... Outlook for Further Deterioration Expands

February Nationwide HSBI Declines Compared to Previous Month
Gwangju Experiences Sharp Drop of Over 20 Points
Jusan-yeon "Measures Needed to Address Changes in Housing Supply Market Environment"

[Asia Economy Reporter Hwang Seoyul]

The Korea Housing Industry Institute forecasted on the 10th that the nationwide Housing Business Sentiment Index for this month will decline compared to last month. Photo by Korea Housing Industry Institute

The housing business downturn is expected to expand nationwide.

According to the 'February Nationwide Housing Business Survey Index (HBSI)' released by the Korea Housing Industry Research Institute on the 10th, this month's HBSI forecast dropped 9.7 points from the previous month (77.6) to 67.9.

HBSI is an index calculated monthly by surveying housing business operators on their business performance and outlook. It is a supply market indicator that comprehensively assesses the housing business from the supplier's perspective. The survey targets 500 member companies belonging to the Korea Housing Association and the Korea Housing Construction Association. The index baseline is 100, with below 85 indicating a downturn phase, 85 to less than 115 indicating a stable phase, and 115 or above indicating an upturn phase.

Specifically, the metropolitan area HBSI (81.8) fell 8.6 points from the previous month, and Seoul (83.3) dropped 12.6 points compared to the previous month.

The Korea Housing Industry Research Institute assessed the decline in Seoul's HBSI by stating, "Since Seoul's continuous policy normalization of redevelopment regulations and institutional improvements are ongoing, the decline this month is likely a temporary phenomenon."

Negative outlooks on housing business conditions in provincial metropolitan cities also expanded this month following the previous month. In Daegu (51.6), the lowest nationwide forecast level persisted, prolonging the negative outlook on the housing business. Gwangju (56.5) also saw a sharp drop of over 20 points compared to the previous month, and Daejeon (72.7) and Busan (69.2) showed downward trends. Ulsan (76.4) rose 7.2 points from the previous month but remained in the 70s. The provinces recorded 66.1, down 16.2 points from the previous month.

The Korea Housing Industry Research Institute stated, "As volatility and uncertainty in the housing market and business conditions increase, housing business operators need to strengthen monitoring of regional housing market conditions and prepare countermeasures to respond to changes in the housing supply market environment."

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