Housing business sentiment in the Seoul metropolitan area rebounded in December, one month after the government's October 15 measures dampened market expectations, a survey showed.
The Korea Housing Institute said Monday that the Seoul Housing Business Outlook Index rose 23.3 points from November to 95.0 in December, based on a survey of housing business operators. An index reading above 100 indicates optimistic expectations, while below 100 signals pessimism.
Gyeonggi Province's index rose 16.6 points to 79.4 during the same period, while Incheon's climbed 21.7 points to 79.3, showing gains across the entire metropolitan area.
The October 15 measures designated all of Seoul and 12 areas in Gyeonggi Province as speculative overheating districts, adjustment target areas, and land transaction permit zones, triggering a sharp decline in sentiment. Seoul's index had plunged from 106.8 in October to 71.7 in November, while Gyeonggi Province fell from 94.8 to 62.8 and Incheon dropped from 83.8 to 57.6.
The institute attributed the December rebound to rising apartment prices in popular Seoul districts such as Songpa and Dongjak. Areas outside the regulated zones, including parts of Incheon and Gyeonggi Province, also saw index gains due to a "balloon effect," the institute said.
"Transaction volumes have yet to show a clear recovery due to strong lending restrictions, designated regulation areas, and land transaction permit requirements," a Korea Housing Institute official said. "However, business sentiment has improved as prices rose in popular areas including major reconstruction project complexes and districts like Songpa, Dongjak, and Yeongdeungpo."
