The nationwide apartment move-in outlook index for July rose sharply, as the recent uptrend in home prices continued and expectations grew for improved funding conditions amid an active stock market.
The Korea Housing Institute said on the 9th that its survey of housing developers showed the nationwide apartment move-in outlook index for this month came in at 97.5, up 12.9 points from the previous month. The index gauges expectations of whether buyers who purchased apartments will be able to normally pay their balance and move in. A reading above 100 indicates that positive expectations prevail, while a reading below 100 indicates negative expectations.
The nationwide index had fallen to 69.3 in April amid external uncertainties such as reduced lending and the Middle East war, but has shown a steep rebound for three consecutive months, reaching 74.1 in May, 84.6 in June, and 97.5 in July. The institute analyzed that the result reflected "a combination of factors, including improved market sentiment from rising home prices, better funding conditions from a strong stock market, and expectations of reduced future supply."
By region, the Seoul metropolitan area rose 20.9 points to 102.6, surpassing the 100 benchmark. Seoul in particular climbed to 118.7, while Gyeonggi recovered to the 100 benchmark. Incheon rose 18.9 points from the previous month but stood at 89.2, still failing to recover the benchmark. The institute analyzed that "strong home prices centered on the semiconductor belt, including Dongtan, appear to have significantly improved market sentiment."
Metropolitan cities also rose 18.9 points from 84.4 to 103.3. Provincial areas were tallied at 91.3, up 5.5 points. Daegu saw the largest gain, rising 29.3 points (81.8 to 111.1), while Daejeon was confirmed at 106.2, up 23.9 points. Ulsan (92.3 to 107.6) and Sejong (100.0 to 107.6) also exceeded the 100 benchmark.
Among provincial areas, South Chungcheong (75.0 to 100.0), South Jeolla (66.6 to 88.8), Gangwon (66.6 to 80.0), and Jeju (71.4 to 80.0) rose, while North Jeolla (100.0 to 90.0), North Gyeongsang (100.0 to 91.6), and South Gyeongsang (107.1 to 100.0) declined. The institute explained that "while the overall outlook improved as move-in volumes in provincial areas plunged, recovery expectations were limited in some areas due to a backlog of unsold units and sluggish regional economies."
Meanwhile, the nationwide apartment move-in rate for June was 69.9%, down 1.3 percentage points from the previous month. Reasons for not moving in were, in order, delays in selling existing homes (36.7%), failure to secure balance loans (26.5%), failure to secure tenants (20.4%), and delays in selling presale rights (2.0%).
