Nationwide Apartment Sales Market in September 'Cloudy'... Seoul and Gyeonggi 'Clear'

The nationwide apartment sales market, which had been regaining momentum, is expected to slow down in September. On the other hand, soaring sales prices are likely to rise again in September.

[Image source=Yonhap News]

According to the Korea Research Institute for Human Settlements (KRHIS) on the 7th, the apartment sales outlook index for September was recorded at 90.2, down 10.6 points from the previous month. This index is a comprehensive indicator that reflects the conditions of complexes that are about to be sold or currently on sale from the supplier's perspective. A value above 100 means more member companies view the market outlook positively, while below 100 indicates more negative views.

Seoul (102.4) fell 16.5 points compared to last month but still maintained a forecast above the baseline. Gyeonggi (104.8) also dropped 3.3 points from the previous month but remained above 100.

The apartment sales outlook index for regions such as Gyeongnam (112.5→75.0), Jeonnam (112.5→88.2), Gangwon (108.3→85.7), and Gyeongbuk (94.7→72.2) sharply declined compared to last month.

Conversely, Daegu (80.0→100.0), Sejong (100.0→107.1), and Chungnam (81.3→85.0) saw an increase in the index compared to the previous month. However, these areas have seen almost no new supply recently, making it difficult to interpret the rise in the sales outlook index as a sign of recovery in the sales market.

A KRHIS official explained, "The decline in the sales outlook index appears to be influenced by rising mortgage interest rates in the second half of the year, concerns over economic slowdown, and worries about a real estate market slump originating from China." They added, "With the expected halt in U.S. base rate hikes and anticipated economic stimulus effects from next year's Korean general election and the U.S. presidential election, the downward trend in the sales outlook index is unlikely to persist for a long time."

The sales price outlook index for September rose 5.3 points from the previous month to 115.9, exceeding the baseline of 100 for the fifth consecutive month. Rising raw material prices, soaring labor costs, increased safety expenses following the rebar omission incident, and the government's extensive deregulation have contributed to the upward trend in sales prices.

The sales volume outlook index fell slightly by 0.2 points from the previous month to 104.3, while the unsold inventory outlook index dropped 1.0 point to 88.4, continuing a four-month consecutive decline.

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