Move-in Outlook 'Again' Worst Ever... Top Cause of Non-Move-in: 'Existing Home Sales Not Going Through'

October Apartment Move-in Outlook Index 47.6... Down 0.1 Points from Previous Month
September Move-in Rate 72.6%... 'Delay in Existing Home Sales' Top Reason for Non-Move-in

[Image source=Yonhap News]

[Asia Economy Reporter Hwang Seoyul] The apartment move-in outlook index for October has once again hit an all-time low, following last month. The nationwide move-in rate for September also decreased compared to the previous month, with the highest number of respondents stating they could not move in due to failure to sell their existing homes.

October Apartment Move-in Outlook Index / Data = Housing Industry Research Institute

According to the Korea Housing Industry Institute (hereafter KHII) on the 21st, the apartment move-in outlook index for October stood at 47.6, worsening by 0.1 points from the previous month. This marks another all-time low following last month. KHII analyzed that the anticipated second big step rate hike this month and the rapid interest rate increases in a short period have dampened homebuyers' purchasing sentiment, leading to an expected deepening of the real estate transaction freeze.

The apartment move-in outlook index surveys housing business operators about their move-in performance expectations. The index is based on 100; a value above 100 indicates more respondents have a positive outlook, while below 100 means more have a negative outlook.

Regionally, except for Gyeonggi (50.0), Busan (42.8), Daegu (37.0), Chungnam (52.9), Jeonbuk (46.1), and Gyeongbuk (41.1), other areas are expected to see slight increases. Consequently, the metropolitan area rose by 1.5 points to 53.1, major cities increased by 1.3 points to 44.6, while other regions fell by 1.7 points to 47.8. KHII judged this as a base effect due to the previous month's outlook being significantly negative, rather than an actual improvement in move-in prospects.

September Occupancy Rate and Reasons for Non-Occupancy / Source: Korea Research Institute for Human Settlements

The nationwide move-in rate for September was 72.6%, down 4.2 percentage points from the previous month. By region, the metropolitan area (82.4%) fell by 2.2 percentage points, the six major cities (68.8%) decreased by 2.5 percentage points, and other regions dropped from 78.0% to 71.9%, a 6.1 percentage point decline.

The main reasons for non-move-in were delays in selling existing homes (36.4%), failure to secure tenants (34.1%), and inability to secure final payment loans (25.0%). KHII stated, "Due to the economic downturn and rising interest rates, the move-in rate is expected to decline further," and recommended, "Measures such as easing loan regulations and strengthening loan support for the homeless are necessary to prevent a further drop in move-in rates."

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