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Outlook for new apartment sales in June worsens in South Korea, excepting Seoul

2018.06.11 15:26:25 | 2018.06.11 15:39:51
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Korean builders turned more pessimistic about prospects for new apartment sales across the nation except for Seoul.

The Korea Housing Institute said on Monday its June housing sales survey index (HSSI) stood at 65.2, down 6.6 percentage points from the previous month.

The index measures builders’ sentiment about business conditions for the sales of new flats on a monthly basis, and a reading below 100 means pessimists outnumber optimists.

The measure below 70 marked the first time in four months due to weaker expectations after a seasonal peak and uncertainty resulting from upcoming big events such as the U.S.-North Korea summit in Singapore, local elections in Korea and the Russian World Cup in the month, the institute said.

By region, Seoul’s HSSI hit 94.7, maintaining the 90 mark for two consecutive months, suggesting a moderate demand will continue, while the figure for Daegu and Sejong was 87.5 and 85.1, respectively.

The market’s contraction is expected to persist in other smaller cities whose index hovers between 40 and 60, while Incheon and Gyeonggi defended their 70 mark.

Seven regions saw the index fall by more 10 percentage points from the previous month: Jeonnam (52.3, down 21.3 percentage points), Busan (68.5, down percentage 14.8 points), Gwangju (67.8, down 14.3 percentage points), Jeonbuk (54.5, down 12.1 percentage points), Jeju (63.6, down 11.4 percentage points), Ulsan (50.0, down 10.0 percentage points) and Chungbuk (50.0, down 10.0 percentage points).

Only four cities - Seoul, Sejong, Daegu, and Daejeon - will manage to sustain demand for new offering, the institute said.

By Park In-hye and Minu Kim

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]

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