Capital Area Housing Outlook Index Rises to 89.2
The September Housing Business Outlook Index for the capital area increased by 3.1 points to 89.2, driven by rising home prices.
The housing business outlook index for the greater Seoul metropolitan area rose by 3.1 points in September. It reached a level of 89.2, up from the previous month. This marks a slight improvement in market sentiment among builders.
The Korea Housing Industry Research Institute released these survey results on the 15th. An index reading above 100 indicates more optimistic companies than pessimistic ones. A reading below 100 shows the opposite. The current figure remains below the neutral threshold.
Regional Price Trends Drive Improvement
Seoul’s index climbed by 4.4 points to 97.2. Gyeonggi Province saw the largest gain, rising by 7.4 points to 91.1. In contrast, Incheon’s index dropped by 2.5 points to 79.3.
Trading prices continued to rise in areas with dense mid-to-low-priced housing. This trend was prominent in Seoul’s Nowon and Jungrang districts. Gyeonggi Province also saw upward momentum, influenced by the booming semiconductor industry in its southern parts.
Expectations for government supply measures contributed to the rise. Builders anticipate improved business conditions following the August 13 policy announcement. These measures aim to stimulate housing supply and support market stability.
Uncertainties Limit Further Gains
Mortgage regulations continue to create financial burdens for buyers. Market interest rates remain a source of concern. Transaction volumes in the metropolitan area have declined, limiting the potential for further improvement.
The nationwide index is projected at 79.9, down 8.7 points. Regions outside the capital saw significant drops. Jeju’s index fell by 32.8 points to 60.0. Ulsan and North Chungcheong Province both dropped by 25.0 points.
Funding Conditions Show Positive Shift
The September funding index stood at 75.4, up 2.0 points. This reflects expectations for improved access to capital. The government’s plans include strengthened project financing guarantees.
Expanded fund supply and reduced guarantee fees are part of the support package. However, the material supply and demand index fell by 6.6 points to 88.7. Rising construction costs and high prices for reinforcing bars weigh on this sector.
