November Housing Transactions Decline... Observing Trend Continues for 3 Months

Ministry of Land, Infrastructure and Transport Announces November Housing Statistics
Unsold Units After Completion Reach Highest Since February 2021

Housing market transaction volume decreased again last month, marking the third consecutive month of decline since September. This is interpreted as buyers remaining cautious amid sustained high interest rates and increasing uncertainty in the real estate market.

Although unsold housing units have decreased for nine consecutive months, the number of post-construction unsold units, classified as problematic unsold housing, continues to accumulate, reaching the highest level since February 2021 (10,779 units).

According to the November housing statistics released by the Ministry of Land, Infrastructure and Transport on the 29th, nationwide housing sales transactions last month totaled 45,415, down 5.0% from 47,799 in the previous month. This marks a decline for three consecutive months since September, when transactions fell below 50,000 units (49,448 units). In the metropolitan area, transactions were 18,010, a 9.0% decrease from the previous month, while in provincial areas, transactions were 27,405, down 2.2% from the previous month.

The combined volume of lease and deposit transactions, based on the lease reporting system and fixed-date registration data, increased by 0.4% to 211,187 in November compared to 210,449 in the previous month.

Nationwide unsold housing units have been decreasing for nine consecutive months. As of the end of November, unsold housing units totaled 57,925, down 0.6% (374 units) from 58,299 in the previous month. Unsold units in the metropolitan area decreased by 4.5% (329 units) to 6,998, and unsold units in provincial areas also fell slightly by 0.1% (45 units) to 50,972. The reduction in unsold units is attributed to a decrease in the volume of new housing supply.

However, post-construction unsold units, which remain unsold after construction completion, increased by 2.4% (241 units) to 10,465 last month compared to 10,224 in October.

Construction indicators have shown mixed trends following the government's September 26 housing supply activation measures. While housing starts increased last month following October, the volume of new housing supply approvals, which had risen in October, declined again. Building permits decreased in October but returned to an upward trend in November.

In November, nationwide housing starts reached 28,783 units, an 82.9% increase from the previous month. Notably, housing starts in the metropolitan area surged by 148.2% to 15,367 units, while provincial areas saw a 40.6% increase to 13,416 units. Last month, housing supply approvals totaled 21,392 units (10,466 in the metropolitan area and 10,926 in provincial areas), down 36.0% from the previous month. Building permits amounted to 20,553 units (11,739 in the metropolitan area and 8,814 in provincial areas), up 13.9% from the previous month.

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