Gangwon, Jeju, Daejeon Enter Stable Phase
Jeonse Consumer Sentiment Also Stops Continuous Decline
[Asia Economy Reporter Cha Wanyong] Last month, nationwide housing transaction sentiment successfully rebounded. This reflects expectations for the government's deregulation policies such as the 1·3 measures and the decline in mortgage loan interest rates. However, since this rebound still occurs within a downward phase, it remains to be seen whether it will lead to revitalization of real estate transactions.
According to the January real estate market consumer sentiment survey released by the Korea Research Institute for Human Settlements on the 16th, the nationwide housing transaction consumer sentiment index last month recorded 91.5. This is an increase of 8.8 points compared to the previous month but still falls within the downward phase. The consumer sentiment index is classified as downward phase if below 95, stable if between 95 and less than 115, and upward phase if 115 or above.
By region, the housing transaction consumer sentiment index was 93.8 in Seoul (up 11.7 points from the previous month), 92.7 in the metropolitan area (up 8.8 points), and 90.3 in non-metropolitan areas (up 7.7 points).
In particular, Gangwon-do saw its housing transaction consumer sentiment index rise by 20.9 points (from 80.4 to 101.3), shifting into a stable phase. Jeju-do also rose 18.1 points from the previous month to 100.2, and Daejeon increased by 13.6 points to 96.9, both entering the stable phase.
Incheon recorded its lowest point last December with a housing transaction consumer sentiment index of 78.7 but surged to 92.6 last month with a 13.9-point increase. The only region to decline compared to the previous month was Jeonbuk (from 85.8 to 84.2).
The revival of the housing transaction consumer sentiment index in January is interpreted as reflecting expectations for the recent decline in mortgage loan interest rates and additional deregulation measures as part of the housing market soft landing policies.
The housing jeonse market consumer sentiment index in January recorded 76.1, stopping the eight consecutive months of decline that continued until the previous month (71.8) and successfully rebounding. Seoul recorded 70.3, up 3.0 points from the previous month (67.3), the metropolitan area 73.6 (previous month 69.0), and provinces 79.1 (previous month 75.2).
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