April 2022 Nationwide Housing Sales Market Sentiment Index (HSSI) Forecast / Data provided by Korea Housing Industry Research Institute
[Asia Economy Reporter Hwang Seoyul] In April, the nationwide housing market pre-sale outlook was positive due to expectations of increased supply and deregulation following the presidential election.
The Korea Housing Industry Research Institute (hereafter KHIRI) announced on the 12th that the Housing Sales Sentiment Index (HSSI) nationwide in April recorded 92.9, rising 15.3 points from the previous month. The HSSI is an indicator compiled by surveying housing developers about their outlook on the pre-sale market. A figure below the baseline (100) indicates a negative market outlook.
Expectations appear to be concentrated especially in the Seoul metropolitan area. The HSSI for the metropolitan area was 113.0, up 27.9 points from last month. Specifically, Seoul (114.6), Incheon (107.1), and Gyeonggi (117.5) all exceeded the baseline (100.0) in their outlooks.
The outlook is also on the rise in provincial areas. The HSSI for provinces was 88.5, up 12.5 points from the previous month. Some regions such as Busan (109.5), Ulsan (100.0), Chungnam (108.3), and Sejong (100.0) recorded outlooks above the baseline.
KHIRI explained, "The nationwide increase in outlooks is due to expectations that housing policy will shift toward deregulation following the presidential election."
Although most regions showed improvement, Daegu (74.0) and Chungbuk (70.0) still recorded figures far below the baseline. This is analyzed to be due to the large accumulated volume of pre-sale (planned) housing in these areas.
KHIRI stated, "Disparities in outlooks by region still exist, and it will take time for actual improvement in pre-sale business conditions. It is necessary to explore ways to utilize government policies and prepare countermeasures in response to changes in the business environment."
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