The apartment sales outlook index in the metropolitan area has exceeded the benchmark for the first time in six months, raising expectations for improvement in the apartment sales market.

According to a survey conducted on May 8 by the Korea Housing Industry Research Institute (KHIRI) targeting housing business operators, the metropolitan apartment sales outlook index recorded 107.1, a rise of 7.4 points (p) from the previous month. The apartment sales outlook index is a comprehensive indicator assessing the conditions of complexes preparing for or currently engaged in sales from the supplier's perspective. A score above 100 means that more member companies view the market outlook positively, while a score below 100 indicates the opposite. This is the first time the metropolitan area outlook index has surpassed 100 since November of last year (108.8). In the metropolitan area, Seoul rose from 108.3 to 122.2, an increase of 13.9p, while Gyeonggi (97.3→102.8) and Incheon (93.3→96.4) are also expected to rise.

<YONHAP PHOTO-4544> Apartments in Gangnam's 3 districts and Yongsan record 40% as 'new highs' despite the expansion of land transaction permission system. (Seoul=Yonhap News) Reporter Kim In-cheol reports that as of May 7, 40 days after the expansion of the land transaction permission area, 40% of the apartments traded in Gangnam's 3 districts and Yongsan have recorded new highs. The Apgujeong Apartments in Gangnam have seen 64% trading at new highs, with a transaction reaching 10.5 billion won. May 7, 2025. yatoya@yna.co.kr/2025-05-07 14:21:03/ /Courtesy of Yonhap News.

The non-metropolitan area also recorded 90.3, up 9.7p from the previous month. Chungbuk increased by 33.3p (66.7→100), Sejong by 29.7p (84.6→114.3), Jeonbuk by 18.2p (81.8→100), and Chungnam by 15.4 (92.3→107.7), with 11 areas expected to rise. Sejong recorded its highest level in 4 years and 4 months since January 2021 (117.6), influenced by expectations regarding the transfer of the administrative capital.

In contrast, Busan fell by 6.0p (95.5→89.5), and Jeju decreased by 8.3p (75.0→66.7), while Daejeon remained unchanged at 100.

The Korea Housing Industry Research Institute analyzed that expectations of interest rate cuts, potential early resolution of the tariff war originating from the United States, and optimism surrounding the new government have led to an increase in sales outlook in most regions.

Commissioner Gu Jung of the Korea Housing Industry Research Institute noted, "The sales outlook index rose due to expectations regarding the resolution of domestic impeachment instability and potential changes in U.S. tariff policy." He added, "However, with rapid changes expected in domestic political circumstances after June, we cannot guarantee the continuation of this trend." Commissioner Gu stated, "In the metropolitan area, there is a common view that the confirmation of latent demand occurred during the process of lifting land transaction permission zones and reassignment, leading to positive indications in the sales outlook due to the price increases expanding to surrounding areas, which have indeed experienced rising prices."