February Nationwide Housing Market Outlook Declines... 38% of Unoccupied Households "Lack Final Payment Loans"

February Housing Occupancy Sentiment Index (HOSI) Forecast and January Actuals / Photo by Korea Housing Industry Research Institute

[Asia Economy Reporter Hwang Seoyul] The nationwide housing occupancy outlook index for February and the actual performance for January both declined compared to the previous month, marking the first time in over a year that the index fell to the 70s.

According to the Korea Housing Industry Research Institute (KHIRI) on the 17th, the nationwide Housing Occupancy Survey Index (HOSI) outlook for February dropped 5.7 points from the previous month to 76.9, while the actual performance for January fell 4.0 points to 77.3. HOSI is an indicator that comprehensively assesses the occupancy conditions of apartment complexes that are about to be occupied or are currently being occupied, as judged by housing suppliers. A value above the baseline of 100 indicates favorable occupancy conditions, while a value below suggests deterioration.

With the February HOSI outlook declining nationwide by region, the housing occupancy market is expected to contract next month. The metropolitan area recorded 76.8, down 4.2 points from the previous month; provincial metropolitan cities fell 6.8 points to 73.4; and provincial city-level areas dropped 5.6 points to 79.5.

Although the nationwide January HOSI actual performance declined, the Seoul (84.2) and Gyeonggi (80.5) regions still maintained levels above 80. The provincial actual performance was 76.5. In the provinces, except for Chungnam (93.3), Jeonbuk (92.3), Ulsan (81.2), Gangwon (80.0), and Jeonnam (80.0), all other regions recorded actual performance below the 80 mark.

Meanwhile, the nationwide occupancy rate in January slightly increased to 85.1, mainly driven by the provinces. The metropolitan area recorded 90.9, down 1.5 points from the previous month, while the provinces rose 1.7 points to 83.9.

The most common reason for non-occupancy was failure to secure the final payment loan (38.6%). This was followed by delays in selling existing homes (33.3%), failure to secure tenants (17.5%), and delays in selling pre-sale rights (3.5%).

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