Q1 Construction Contract Amount 68.4 Trillion Won... 6.3% Decrease Compared to Same Period Last Year

The scale of domestic construction contracts in the first quarter of this year was found to have decreased by 6.3% compared to the same period last year. This is interpreted as a result of the real estate market downturn and rising construction raw material prices. However, the decline was somewhat less severe than in the fourth quarter of last year, which recorded the largest drop since related statistics began being compiled in 2014.

On the 26th, the Ministry of Land, Infrastructure and Transport announced that the nationwide construction contract amount in the first quarter of this year was 68.4 trillion won, down 6.3% from the same period last year.

The construction contract amount had been increasing compared to the previous year until the third quarter of last year (10.7%↑ in Q1, 8.8%↑ in Q2, 14.0%↑ in Q3), but with the real estate market downturn intensifying in the fourth quarter, it decreased by 18.4% compared to the same period last year, and the downward trend continued into the first quarter of this year.

By sector, public construction projects ordered by the government or public institutions amounted to 19.4 trillion won in the first quarter of this year, down 3.8% from the same period last year, while private construction projects totaled 49.6 trillion won, a decrease of 7.3%.

By type of construction, civil engineering reached 28 trillion won, an increase of 20.3% compared to the previous year, whereas building construction was 40.4 trillion won, down 18.8%.

By company size, the top 1?50 companies recorded 31 trillion won (12.0% increase compared to the same period last year), companies ranked 51?100 had 3.6 trillion won (27.9% decrease), companies ranked 101?300 had 5.9 trillion won (20.6% decrease), companies ranked 301?1000 had 5.2 trillion won (32.0% decrease), and other companies recorded 22.7 trillion won (10.2% decrease).

By region, the metropolitan area recorded 26.4 trillion won, down 21.0% from the same period last year, while non-metropolitan areas increased by 6.1% to 42 trillion won.

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