Building Permits Increased by 13.5% in the First Half of the Year... Construction Starts and Completions Decreased

[Asia Economy Reporter Ryu Tae-min] The building permit area in the first half of this year increased by about 13% compared to last year.

According to the Ministry of Land, Infrastructure and Transport on the 26th, the building permit area in the first half of this year (as of the end of June) was 92,758,000㎡, showing a 13.5% increase compared to the same period last year. The number of building permits issued decreased by 11.3% during the same period, recording 105,243 buildings. By region, the Seoul metropolitan area saw a 3.6% decrease to 40,869,000㎡, while provinces saw a 31.8% increase to 51,888,000㎡ in permitted area.

The Ministry explained that building permits are a leading economic indicator, and the increase in permitted area in the first half of the year suggests future activation of investment in the construction sector. Meanwhile, construction starts, a coincident economic indicator, and completions, a lagging economic indicator, appear to have decreased partly due to rising construction material prices.

The construction start area decreased by 12.1% to 58,435,000㎡. The number of construction starts fell by 13.1% to 82,040 buildings. By usage, residential (△21.0%) and educational and social facilities (△14.8%) decreased compared to the same period last year, while industrial use (1.6%) slightly increased due to new factory constructions such as knowledge industry centers in Cheonan and Busan.

The completion area decreased by 6.1% to 57,195,000㎡, while the number of completed buildings increased by 7.4% to 74,145 buildings. By usage, industrial and educational/social facilities saw an increase in completion area, whereas commercial and residential uses decreased. By region, the Seoul metropolitan area decreased by 7.1% to 28,205,000㎡, and provinces decreased by 5.1% to 28,989,000㎡.

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