The apartment sales outlook index, which reflects the sentiments of dwelling developers, surged in the metropolitan area, including Seoul and Gyeonggi Province. This has been analyzed as a response to expectations for economic stimulus from the new government.
The Korea Housing Institute (KHI) reported on the 8th that, as a result of a survey conducted among dwelling developers, the nationwide apartment sales outlook index for July was 97, an increase of 2.4 points from the previous month. A reading above 100 indicates a positive outlook, while a reading below 100 indicates a negative outlook.
KHI noted, "The rapid formation of the second supplementary budget plan following the establishment of the Lee Jae-myung government has increased expectations for economic stimulus, along with the effects of a sustained decrease in housing mortgage rates."
The apartment sales outlook index in the metropolitan area recorded an increase of 9.3 points from the previous month, reaching 113.9. Seoul rose by 17.5 points, Gyeonggi by 12.1 points, while Incheon saw a decline of 1.7 points. The non-metropolitan area recorded an increase of 0.9 points, reaching 93.4.
KHI analyzed, "The significant rises in Seoul and Gyeonggi within the metropolitan area are attributed to expectations for economic recovery following the presidential election, along with falling interest rates and anticipated increases in housing prices, leading to the spread of rising apartment prices from the three districts of Gangnam to other popular areas such as Mapo, Yongsan, and Seongdong."
In the non-metropolitan area, Gangwon (66.7→90.9·24.2p↑) and Gyeongnam (80.0→100.0·20.0p↑) saw significant increases, along with Jeonnam at 13.9 points (77.8→91.7), Jeonbuk at 12.5 points (87.5→100.0), Gwangju at 7.6 points (85.7→93.3), Daegu at 5.2 points (89.5→94.7), and Busan at 0.7 points (88.2→88.9) also projected an upward trend.
Sejong is projected to decrease by 25.3 points (118.2→92.9), Ulsan by 22.4 points (109.1→86.7), Daejeon by 16.7 points (116.7→100.0), Jeju by 4.1 points (92.3→88.2), and Chungbuk by 3.3 points (83.3→80.0). Chungnam and Gyeongbuk are projected to remain unchanged at 100.0.
KHI noted, "Of the non-metropolitan areas, Gangwon saw the largest increase, which is likely due to expectations for the expansion of transportation networks, such as the Ministry of Land's GTX-B Chuncheon extension.
Along with the new GTX-D Wonju plan, it is interpreted that the positive prospects for revitalizing the regional sales market were reflected, especially after Sokcho City was removed from the unsold management area after nine months in June."