National Housing Sales Sentiment Continues 'Rising Phase' for Second Consecutive Month

The nationwide housing sales market consumer sentiment index recorded an increase for two consecutive months since July. With the autumn moving season coinciding, the demand for jeonse (long-term lease) increased, causing the consumer sentiment index for the jeonse market in August to exceed the baseline (100) for the first time since May last year.

[Image source=Yonhap News]

According to the 'Real Estate Market Consumer Sentiment Survey' announced by the Korea Research Institute for Human Settlements on the 15th, the nationwide housing sales market consumer sentiment index in August was 118.3, up 1.3 points from the previous month. The index has been rising for seven consecutive months since January this year (91.5), shifting from a stable to an upward phase.

The Korea Research Institute for Human Settlements' consumer sentiment index quantifies changes in consumer behavior and awareness levels on a scale from 0 to 200 based on surveys of real estate agencies and general households. An index below 95 indicates a downward phase, 95 to less than 115 indicates a stable phase, and 115 or above indicates an upward phase.

In the metropolitan area, the index improved from 121.0 to 121.4, and Seoul, which was at 123.7, rose to 124.1. Gyeonggi Province maintained its upward phase, increasing from 121.0 to 121.9. During the same period, Incheon’s index fell from 113.6 to 112.6.

In the provinces, Gangwon had the highest sales sentiment index, rising from 123.2 to 130.1. Daegu (105.5 to 115.0) and North Gyeongsang (109.4 to 118.5) were also in an upward phase.

On the other hand, Busan (112.2 to 109.1) and North Jeolla (112.5 to 109.8) saw a wider decline compared to the previous month.

The nationwide housing jeonse market consumer sentiment index rose 5.1 points from the previous month to 105.5 last month, maintaining a stable phase. In particular, with the increase in jeonse demand ahead of the autumn moving season, the consumer sentiment index exceeded the baseline of 100 for the first time since May last year (100.5).

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