Will Buying Momentum Revive? Housing Sales Consumer Sentiment Shifts from Decline to Stabilization After 7 Months

Korea Research Institute for Human Settlements 'February Real Estate Market Consumer Sentiment Survey'

The government’s real estate regulation easing has led the housing sales consumer sentiment index to shift from a declining phase to a stable phase after 7 months. Seoul’s consumer sentiment also exited the declining phase for the first time in 8 months since June last year.

[Image source=Yonhap News]

According to the 'Real Estate Market Consumer Sentiment Survey' by the Korea Research Institute for Human Settlements on the 15th, Seoul’s housing sales market consumer sentiment index last month was 105.2, rising 11.4 points from the previous month (93.8). This is the highest level in 9 months since May last year (112.9).

The consumer sentiment index is categorized as declining phase if below 95, stable phase between 95 and 114, and rising phase if 115 or above. The index ranges from 0 to 200, and a value above 100 indicates more responses expecting price increases or transaction growth.

Seoul’s housing sales market consumer sentiment index had remained in the declining phase for 7 consecutive months after shifting to that phase in July last year.

The nationwide housing sales market consumer sentiment index also rose 10.6 points from 91.5 in January to 102.1 last month, marking the highest level since June last year (103.0). This indicates a shift back to the stable phase after 7 months in the declining phase since August last year.

The housing jeonse market consumer sentiment index also increased. In February, Seoul’s jeonse market consumer sentiment index was 81.3, up 11.0 points from the previous month, showing a rising trend for 3 consecutive months after the decline stopped in December last year for the first time in 8 months.

The nationwide housing jeonse market consumer sentiment index also rose from 76.1 to 85.3. However, the nationwide market still remains in the declining phase.