Housing Permits in the First Half of the Year Reach 230,000 Units... 22% Increase Compared to the Same Period Last Year

Seoul Sees Increase in Permits but Decrease in Construction Starts, Sales, and Completions

[Asia Economy Reporter Kangwook Cho] In the first half of this year, the numbers related to housing supply nationwide, including permits, construction starts, and sales, increased significantly. However, in Seoul, while permits increased, sales and construction starts decreased.

The Ministry of Land, Infrastructure and Transport announced on the 5th that the nationwide housing permit performance in the first half of this year was 230,761 households, a 22.2% increase compared to the same period last year (188,848 households). The metropolitan area recorded 117,039 households, and the provinces recorded 113,722 households, increasing by 17.0% and 28.0% respectively compared to the same period last year.

However, the permit performance in the first half of this year is 12.5% lower compared to the average housing permits in the first half of the past five years nationwide. Both the metropolitan area and provinces decreased by 8.1% and 16.5% respectively compared to the five-year average.

Seoul's permit volume was 37,194 households, a 44.1% increase compared to one year ago.

Among the permitted units, apartments accounted for 171,574 households, a 24.8% increase compared to the same period last year. Non-apartment housing was 59,187 households, increasing by 15.1% during the same period. In the first half, apartment permits in the metropolitan area and Seoul were 83,331 households and 22,427 households respectively, increasing by 17.4% and 87.0% compared to the same period last year.

The Ministry of Land explained, "The apartment permit volume in Seoul in the first half of the year is similar to the historically highest levels recorded in 2017 (23,000 households) and 2019 (22,000 households)."

The volume of construction starts in the first half was 269,289 households nationwide, a 23.5% increase compared to the same period last year (218,135 households). Compared to the five-year average, it also increased by 15.4%. Apartments accounted for 200,015 households, and non-apartment housing was 69,274 households, increasing by 19.1% and 37.9% respectively.

The metropolitan area recorded 135,838 households, a 10.5% increase compared to the same period last year, and the provinces recorded 133,451 households, a 40.1% increase. In particular, apartment construction starts in the metropolitan area reached 104,788 households, the highest since related statistics began in 2005. However, in Seoul, it was 24,213 households, a 37.6% decrease. Compared to the five-year average, it also decreased by 33.9%.

Sales performance of multi-family housing nationwide was 159,677 households, a 23.2% increase compared to the same period last year (129,571 households). The metropolitan area recorded 75,865 households, a 2.0% increase from one year ago, and the provinces recorded 83,808 households, a 51.8% increase. On the other hand, Seoul recorded 5,618 cases, a 41.9% decrease compared to last year.

General sales were 116,906 households, a 35.3% increase compared to the same period last year, and rental housing was 24,859 households, a 53.6% increase. Cooperative member units decreased by 33.7% compared to one year ago, totaling 17,908 households.

The volume of housing completions in the first half was 177,906 households nationwide, a 24.3% decrease compared to the same period last year (235,144 households). The metropolitan area recorded 104,431 households, a 14.4% decrease, and the provinces recorded 73,475 households, a 35.1% decrease.

Apartments accounted for 132,173 households, and non-apartment housing was 45,733 households, decreasing by 29.2% and 5.7% respectively compared to one year ago.