Apartment Occupancy Rate in January at 72.1%... Up 4.8%p from Previous Month

Increased Demand for Preferred Complexes like School Districts and Station Areas
February Apartment Move-in Outlook Index Falls by 1.7p

The nationwide apartment occupancy rate in January rose by 4.8 percentage points compared to the previous month. This increase is attributed to growing demand centered around school districts and areas near subway stations as the moving season approaches.

On the 8th, the Korea Housing Industry Research Institute conducted a survey targeting housing developers, revealing that the nationwide apartment occupancy rate in January was 72.1%. Both the metropolitan area and provincial regions saw increases in occupancy rates.

The apartment occupancy rate in the metropolitan area rose to 81.1%, up 4.9 percentage points from December last year (76.2%). In the five major metropolitan cities, the rate increased by 5.4 percentage points from the previous month (65.0%) to 70.4%. Other regions saw a 4.2 percentage point rise from 65.8% to 70.0%.

Despite a surge in unsold apartments, a sluggish sales market, and rising jeonse prices contributing to a real estate downturn, demand is increasing particularly in complexes with excellent living conditions such as good school districts and proximity to subway stations.

In the metropolitan area, Seoul's occupancy rate rose by 5.7 percentage points to 85.6%, while Incheon and Gyeonggi Province increased by 4.6 percentage points to 78.9%.

Among the provinces, Gangwon Province showed a very high increase in occupancy rate, recording 63.7%, up 10.0 percentage points from December's 53.7%. Although the occupancy rate fell by 11.3 percentage points in the previous month, it rebounded sharply in January. Gangwon Province is a region with high fluctuations in occupancy rates and relatively low apartment purchase intentions compared to supply volume.

As the high-interest rate trend prolongs, the cause of non-occupancy among buyers due to 'lack of final payment loan approval' rose significantly to 25.5% from 18.2% the previous month. Delays in home sales slightly decreased to 46.8%, while tenant acquisition issues (14.9%) and delays in selling pre-sale rights (4.3%) also declined compared to the previous month.

The Korea Housing Industry Research Institute forecasted, "From February, refinancing loans, which previously applied only to existing credit and mortgage loans, will be extended to include jeonse loans, gradually improving the issues of lack of final payment loans and tenant acquisition."

The apartment occupancy outlook index for February, marking the start of the peak moving season, was surveyed at 77.7 nationwide, down 1.7 points. The metropolitan area is expected to decline by 4.3 points to 73.0, major metropolitan cities by 1.8 points to 78.6, and provincial areas by 0.5 points to 78.9.

Within the metropolitan area, the occupancy outlook index for Seoul and Incheon is expected to decline for the second consecutive month, while Gyeonggi Province shows an upward trend. Seoul is projected to fall by 1.9 points from 92.3 to 79.4, and Incheon by 1.5 points from 65.5 to 64.0. Gyeonggi Province, with large apartment complexes of over 1,000 households scheduled, reflects market recovery expectations, rising from 73.5 in December to 75.7 in February. Among the provinces, Jeju saw a 12.1-point increase, reaching its highest level since June 2023.

Although the apartment occupancy outlook index for February slightly declined, it remains higher than in the first quarter of last year. The Korea Housing Industry Research Institute explained, "This reflects optimistic sentiment toward government policies aimed at reversing the stagnant real estate market, such as the temporary exclusion of multi-homeowners from capital gains tax surcharges and deregulation of reconstruction and redevelopment. However, risks remain, including reduced loan limits due to stress DSR, accumulation of unsold units, and potential real estate project financing (PF) failures."

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