Housing Purchase Sentiment Index Turns Down After 10 Months... Sejong and Seoul Plummet

Capital area down 9.9p, non-capital area down 6.3p
Sejong, Gangwon, Seoul show large declines

Housing purchase sentiment, which had been on the rise this year, turned downward for the first time in 10 months. In Seoul, where demand is concentrated, the housing purchase sentiment dropped by more than 10 points. It appears that consumer sentiment has weakened as a cautious stance has deepened in the housing market due to the impact of high interest rates.

[Image source=Yonhap News]

According to the Real Estate Market Research Center of the Korea Research Institute for Human Settlements on the 15th, the nationwide housing sales market consumer sentiment index for October was 111.1, down 8.3 points (p) from the previous month. This marks the first decline in 10 months after recording nine consecutive months of increase since December last year.

This index is based on surveys conducted with real estate agencies and general households, and generally, a purchase sentiment index above 100 indicates more responses expecting price increases or transaction growth. It is divided into three phases: decline (0?94), stable (95?114), and rise (115?200).

The metropolitan area recorded 112.3, down 9.9p from the previous month, while non-metropolitan areas fell 6.3p to 109.7. Last month, the phase shifted from rising to stable.

Among major regions with declines, Sejong dropped the most by -23.3p. Gangwon (-14.3p) and Seoul (-11.4p) followed. During the same period, Gyeonggi Province also fell by nearly 10 points.

The consumer sentiment index for the jeonse market also contracted. The nationwide housing jeonse consumer sentiment index was 98.7, down 3.4p from the previous month, maintaining a stable phase.

The combined housing market consumer sentiment index, which includes both sales and jeonse, was 104.9, down 5.8p from a month earlier. After shifting from a decline phase to a stable phase in March, it has maintained the stable phase for eight consecutive months.

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