March Nationwide Housing Market Still Cloudy... Expectations for New Government's Improvement in Maintenance Projects

Nationwide and Seoul Metropolitan Area HBSI Decline Compared to Previous Month, Seoul Shows Increase
Attributed to Seoul City's Normalization of Maintenance Project Regulations
Potential Improvement in Project Conditions Due to New Government Policies

Source=Korea Housing Institute

[Asia Economy Reporter Hwang Seoyul] Following last month, the nationwide housing business outlook is expected to deteriorate again this month.

According to the 'March Nationwide Housing Business Survey Index (HBSI)' released by the Korea Housing Industry Research Institute on the 15th, the HBSI outlook for this month recorded 66.2, down 1.7 points from the previous month.

The HBSI is an index calculated by monthly surveys of housing business operators regarding 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 (81.0) fell by 0.8 points compared to last month, but Seoul recorded 83.6, up 0.3 points from last month.

The Korea Housing Industry Research Institute assessed, "The Seoul Metropolitan Government's policy to normalize regulations on redevelopment projects is ongoing, and if the new government also promotes related policies in the future, business conditions are likely to improve mainly in those redevelopment project sites."

Negative outlooks on the housing business continue in provincial metropolitan cities. Daegu (58.6) rose by 7.0 points compared to last month but still recorded a low outlook. Gwangju also increased sharply by 14.9 points but remained in the 70s. Daejeon (60.0), Ulsan (58.8), and Busan (62.5) all declined. The provinces (61.1) also fell by 5.0 points compared to last month.

The Korea Housing Industry Research Institute stated, "As the new government's new policy initiatives may increase volatility in the housing market and business conditions, housing business operators need to prepare response strategies accordingly."

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