Housing Sales Sentiment Slightly Rebounds... Two-Month 'Decline' Phase

The Bank of Korea raised the base interest rate by 0.5 percentage points, and the real estate transaction market is expected to experience a prolonged winter. On the 13th, a red light was on at a traffic signal near an apartment in downtown Seoul.

[Asia Economy Reporter Minyoung Kim] Nationwide housing market transaction sentiment slightly rebounded but still remained in a downward phase.

According to the Real Estate Market Research Center of the Korea Research Institute for Human Settlements on the 17th, the nationwide housing market consumer sentiment index for September recorded 90.1, maintaining the downward phase. This is a 0.2-point increase compared to 89.0 in the previous month.

The consumer sentiment index ranges from 0 to 200 points; an index above 100 indicates more responses expecting price increases or transaction growth. An index below 95 is classified as a downward phase, 115 or above as an upward phase, and between 95 and less than 115 as a stable phase.

Previously, the nationwide transaction market sentiment index in August shifted to a downward phase for the first time in 3 years and 4 months since April 2019 (91.9). It was the lowest figure since statistics began to be compiled in March 2011. Although the September index still remains in the downward phase, it slightly rebounded compared to the previous month, which recorded the lowest level ever.

By region, the metropolitan area rose 1.4 points from 87.6 in August to 89.0 in September, and Seoul increased 3.6 points from 87.5 to 91.1, maintaining the downward phase. Non-metropolitan areas fell from 92.5 to 91.2 during the same period, widening the decline.

The consumer sentiment index for the jeonse market recorded 85.1 nationwide in September, down from 88.3 in the previous month. The metropolitan area and non-metropolitan areas recorded 82.8 and 87.6 respectively, while Seoul recorded 83.7.

The real estate market consumer sentiment index, combining housing and land, was 88.0 nationwide in September, down 1.4 points from 89.4 in the previous month, maintaining the downward phase. During the same period, the metropolitan area fell 1.2 points from 88.0 to 86.8, and non-metropolitan areas also continued the downward phase, dropping 1.5 points from 90.9 to 89.4.

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