November Housing Market Sentiment Falls but Stays in Growth Phase

Housing market sentiment in Korea and the Seoul metropolitan area declined last month following the implementation of the October 15 real estate measures, though overall consumer sentiment remained in an expansionary phase.

According to the Korea Research Institute for Human Settlements' November real estate market consumer sentiment survey released on the 16th, the nationwide housing sales market sentiment index fell 5.0 points from the previous month to 115.8.

An index reading above 100 indicates that regional real estate agencies and general households reported rising prices or increased transactions. Readings below 95 are classified as a declining phase, 95 to below 115 as stable, and 115 or above as an expansionary phase.

By region, the housing sales sentiment indexes for the Seoul metropolitan area and non-metropolitan areas recorded 119.3 and 111.5 respectively, down 7.7 points and 1.7 points from the previous month.

Seoul posted 128.3, a drop of 9.2 points. Gyeonggi Province and Incheon recorded 117 (down 7.9 points) and 105.8 (down 3.1 points) respectively.

Meanwhile, the nationwide housing jeonse (lump-sum deposit lease) market sentiment index came in at 108.9 last month, down 0.1 points from the previous month, maintaining a stable phase.

Seoul's jeonse index was 115.4, down 0.4 points, while Gyeonggi Province remained unchanged at 109.6. Incheon recorded 106.1, up 1.8 points from October.