A survey showed that the outlook for apartment sales in Seoul has worsened ahead of the introduction of stress DSR level 3.
According to a survey conducted on housing businesses by the Korea Research Institute for Human Settlements (KRIHS) on the 10th, the apartment sales outlook index for June recorded an average increase of 1.3 points to 94.6 nationwide. The Seoul metropolitan area is projected to decrease by 2.5 points, while non-metropolitan areas are expected to rise by 2.2 points.
In the Seoul metropolitan area, Seoul recorded a drop of 18.5 points to 103.7 compared to the previous month (122.2), reflecting the largest decline. KRIHS analyzed that this was due to the weakening of the rapid increase effect observed during the process of reassignment and lifting of land transaction permission zones. It also noted that the introduction of stress DSR level 3 prompted a temporary increase in the volume of new apartment sales in Seoul and the metropolitan area as developers accelerated their sales schedules.
In non-metropolitan areas, Jeju (25.6 points), Daejeon (16.7 points), Gyeongbuk (15.4 points), and Daegu (11.2 points) saw significant increases. Ulsan (9.1 points), Jeonnam (8.6 points), Gwangju (4.4 points), and Sejong (3.9 points) were also projected to rise. In contrast, Chungbuk (-16.7 points), Gangwon (-13.3 points), Gyeongnam (-12.9 points), Jeonbuk (-12.5 points), Chungnam (-7.7 points), and Busan (-1.3 points) are forecasted to decline.
KRIHS stated that "the continuous decline in mortgage rates this year, along with expectations for the next administration's expansionary fiscal policy to stimulate the economy, seems to be reflected in the index," adding, "In non-metropolitan areas, there seems to be an impact from expectations that the next government will address the issue of unsold apartments."
Meanwhile, this month's sales price outlook index recorded an increase of 8.9 points to 111.9 compared to the previous month. KRIHS noted that this rise is due to concerns that the mandatory implementation of level 5 design standards for zero-energy buildings for private apartments with more than 30 households, scheduled to begin at the end of June, could lead to construction cost increases amidst the upward trend in housing prices in major areas of Seoul.
The prospect index for the volume of sales is projected to increase by 1.0 point to 96.6 compared to the previous month. KRIHS interpreted that this is due to the resumption of sales schedules that had been postponed during the impeachment period as political stability has returned, and an increasing number of developers are rushing to sell ahead of the implementation of stress DSR level 3 in July.
As new sales decrease in regions with unsold properties, the unsold property outlook index is forecasted to drop by 5.5 points to 103.3 compared to the previous month.