February Housing Market Outlook at 71.5... Still 'Cloudy' Following Last Month

February Nationwide HSSI Drops 4.7 Points from Previous Month
Seoul and Busan Perform Well Despite Negative Perceptions
Sales Price Outlook Remains Upward

February 2022 Housing Sales Sentiment Index (HSSI) Forecast / Photo by Korea Housing Industry Institute

[Asia Economy Reporter Hwang Seoyul] Negative outlooks on the nationwide housing pre-sale market have continued for two consecutive months.

According to the Korea Housing Industry Research Institute (KHIRI) on the 16th, the Housing Sale Sentiment Index (HSSI) for February nationwide was recorded at 71.5, down 4.7 points from the previous month. The HSSI is an index compiled by surveying housing developers about their outlook on the pre-sale market. A figure below the baseline of 100 indicates a negative market outlook.

KHIRI analyzed that although there are regional fluctuations, the nationwide outlook, which had fallen more than 10 points last month, is maintaining a similar trend this month.

The metropolitan area including Seoul (84.8), Incheon (76.0), and Gyeonggi (73.6) maintained the previous month's level, showing scores in the 70s to 80s. While negative perceptions have generally increased, Seoul, Busan (90.9), and Chungnam (93.3) recorded scores in the 80s to 90s.

In the provinces, the index has been fluctuating at each survey point. Daejeon fell 37.5 points from the previous month to 62.5 last month but rose 11.1 points to 73.9 this month. Ulsan rose 14.7 points to 91.9 last month but dropped 16.6 points to 75.0 this month.

Meanwhile, Daegu, which had recorded a low 30-point range last month at 57.6 due to continuous declines, showed some recovery in its outlook but still remained well below the baseline.

However, the HSSI outlook for pre-sale prices stood at 105.4, maintaining a level above the baseline for 18 consecutive months since September last year. As of December last year, pre-sale prices rose nationwide by 1.1%, excluding other provinces, with the increase rate in metropolitan provincial cities exceeding 2%.

KHIRI stated, “While the perception level of the pre-sale market is generally declining, the outlook for pre-sale prices remains positive,” adding, “It is necessary to carefully review the timing of pre-sales and appropriate pre-sale prices based on a thorough market diagnosis.”

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