October Housing Market Deteriorates Nationwide: "Prices Falling, Unsold Units Increasing"

Jusanyeon, October Apartment Sales Outlook Index

Apartment Sales Outlook Index Trend / Data provided by Korea Housing Industry Institute

[Asia Economy Reporter Hwang Seoyul] Although the apartment pre-sale outlook index for October rose slightly compared to the previous month, this is analyzed as a base effect due to the sharp deterioration in the figures last month. Due to weakened buying sentiment, the outlook worsened in most regions nationwide, with pre-sale prices expected to decline and unsold inventory predicted to increase.

According to the Korea Housing Industry Research Institute (hereinafter referred to as KHIRI) on the 20th, the apartment pre-sale outlook index for October was 44.1, a slight increase of 0.4 points compared to September. However, except for Seoul, Sejong, Jeonnam, and Busan, the outlook index for other regions was below 40, indicating an overall negative outlook for apartment pre-sales. The apartment pre-sale outlook index is an indicator that supports market management by assessing the situation and risks in the pre-sale market, surveyed among members of the Korea Housing Association and the Korea Housing Builders Association.

October Apartment Sales Outlook Index / Data provided by Korea Housing Industry Research Institute

Specifically, the metropolitan area recorded 43.4, down 6.0 points. Seoul was forecasted at 53.7, down 5.3 points, and Gyeonggi at 38.5, down 15.0 points. Only Incheon showed a slight increase of 2.2 points, recording 37.9.

The outlook index for provincial areas also fell by 6.7 points to 35.7. Chungnam (31.3) and Gangwon (30.8) both dropped by 15.4 points, and Gwangju declined by 19.0 points to 33.3. In particular, Ulsan and Daegu were forecasted below 30; Ulsan dropped 14.5 points to 26.7, and Daegu has shown a declining trend for three consecutive months since July (60.0), with this month’s outlook at 26.9.

However, Busan rose by 7 points to 45.5, Jeonnam increased by 7.1 points to 47.1, and Sejong rose by 9.6 points to 42.9. KHIRI stated, "The slight increase in the index compared to the previous month in these regions is judged to be a base effect due to the excessively negative outlook in September rather than an actual improvement in pre-sale prospects."

As homebuyers’ purchasing sentiment weakens, the nationwide average pre-sale price is expected to decline, and unsold inventory is predicted to increase. According to KHIRI’s survey results, the nationwide average pre-sale price outlook for October fell by 10.2 points to 95.4 compared to the previous month, while unsold inventory increased by 3.0 points to 112.7. Although the pre-sale volume outlook (83.6) rose slightly, it remained below 100, indicating that developers’ stance on pre-sale volume remains conservative.

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