The national apartment sales outlook index rose sharply in July as expectations for the presale market grew amid a worsening jeonse shortage, referring to Korea's lump-sum deposit lease system.
The Korea Housing Institute (KHI) said Monday that the national apartment sales outlook index for July stood at 87.6, up 18.2 points from the previous month, based on a survey of housing developers. The index reflects developers' outlook on future apartment presale market conditions. A reading above 100 indicates a positive view, while a reading below 100 signals the opposite.
By region, the Seoul metropolitan area rose 18.2 points from the previous month to 102.5, surpassing the baseline. Seoul in particular came in at 114.3, up 14.3 points from the previous month, well above the baseline. "This is attributed to the scarcity of new apartments amid locked-up listings and supply shortages, coupled with expectations of a shift toward purchase demand as the jeonse shortage deepens," KHI said. According to the Korea Real Estate Board, Seoul's weekly apartment sales price index rose 0.3% in the fourth week of June, continuing an upward trend for 72 consecutive weeks. Gyeonggi and Incheon also improved, rising 19.4 points and 20.7 points to 100 and 93.1, respectively.
Non-metropolitan areas also rose 18.2 points from the previous month to 84.4, marking a significant improvement in sentiment. Sales outlooks rose in all regions, with Gwangju posting the largest gain, up 32.6 points to 88.2. South Chungcheong (85.7) had the second-largest increase, up 28.6 points from the previous month, followed by Daejeon (88.9), North Chungcheong (90.0), and South Jeolla (70.0), which rose between 20 and 27 points. North Jeolla also rose 18.2 points, reaching the baseline of 100.
"In non-metropolitan areas as well, a positive outlook on the housing market overall is spreading, driven by expectations of economic revitalization and an expanding shift from jeonse demand to purchases," KHI said. "In particular, expectations for the presale market improved significantly, centered on Gwangju and South Jeolla, as well as the Chungcheong region, where major development prospects are concentrated."
Meanwhile, the July presale price outlook index came in at 104.7, down 4.3 points from the previous month. This is seen as reflecting expectations that pressure from rising construction costs will ease. However, the index still remains above the baseline, indicating that expectations of price increases persist.
