Seoul Housing Market Consumer Sentiment Rises for 5 Consecutive Months

The consumer sentiment index for the housing sales market in Seoul has risen for five consecutive months. In contrast, Gwangju and Jeju turned downward, highlighting regional disparities.

Apartment complex in Songpa-gu, Seoul / Photo by Yonhap News

According to the "May Real Estate Market Consumer Sentiment Index" released by the Korea Research Institute for Human Settlements on the 18th, Seoul's housing sales market consumer sentiment index last month was 121.5, up 3.5 points from the previous month. After falling to 99.6 in December last year, it has steadily risen since January this year, continuing the "rising phase" for two consecutive months.

The Korea Research Institute for Human Settlements considers a housing sales market consumer sentiment index below 95 as a declining phase, between 95 and less than 115 as a stable phase, and 115 or above as a rising phase.

Nationwide, the regions in the rising phase are only Seoul and Chungnam. Chungnam's housing sales market consumer sentiment index rose from 111.8 in April to 117.8 in May, entering the rising phase for the first time in eight months since September last year (116.1).

In the metropolitan area, only Incheon slightly declined from 113.4 to 112.1 compared to the previous month. Gyeonggi rose 2.7 points from 109.7 to 112.4.

Last month, the consumer sentiment index for the non-metropolitan housing sales market was 102.5, up 1.6 points from 100.9 the previous month. By city and province, Sejong (7.1 points), Chungnam (6.0 points), and Gangwon (5.3 points) showed significant increases.

Gwangju (-8.8 points), Jeonnam (-3.3 points), and Jeju (-2.4 points) declined. In particular, Gwangju (89.7) and Jeju (94.8) re-entered the "declining phase."

Meanwhile, the nationwide housing sales market consumer sentiment index in May was 109.3, up 2.3 points from the previous month, maintaining a stable phase. The consumer sentiment index for the jeonse market was 99.9, rising 2.5 points during the same period. The nationwide real estate market consumer sentiment index, combining housing and land, was 102.6, up 2.1 points from the previous month.