Nationwide Apartment Pre-Sale Outlook Index Rises by 9.3 Points
Seoul Sees Highest Increase in the Metropolitan Area with 13.9 Points
There is an outlook that the nationwide apartment pre-sale market will improve in May. The nationwide apartment pre-sale outlook index has reached its highest level since November 2024.
According to a survey conducted by the Housing Industry Research Institute targeting housing business operators, the nationwide apartment pre-sale outlook index for this month was 93.3, up 9.3 points from the previous month, as announced on May 8.
This index is a quantified indicator, with values ranging from 0.0 to 200.0, based on a survey of the conditions of apartment complexes that are about to be or are currently being pre-sold, conducted by the Housing Industry Research Institute among housing business operators. If the index exceeds 100.0, it indicates a positive pre-sale outlook, while a value below 100.0 indicates the opposite.
For the Seoul metropolitan area, the index is projected to rise by 7.4 points to 107.1, while for non-metropolitan areas, it is expected to increase by 9.7 points to 90.3. In the metropolitan area, Seoul recorded a significant increase of 13.9 points, reaching 122.2. Gyeonggi Province is projected to rise by 5.5 points to 102.8, and Incheon by 3.1 points to 96.4.
In non-metropolitan areas, Chungbuk is expected to rise by 33.3 points, Sejong by 29.7 points, Jeonbuk by 18.2 points, and Chungnam by 15.4 points, in that order. In contrast, Busan is projected to decrease by 6.0 points and Jeju by 8.3 points.
The Housing Industry Research Institute stated, "Not only the metropolitan area but also most regions nationwide are expected to see a rise in the apartment pre-sale outlook index, reaching its highest level since November 2024." The institute cited several factors: expectations for an interest rate cut; the possibility of an early end to the Trump-initiated tariff war; stabilization of the political situation following the conclusion of the impeachment crisis; and optimism related to the launch of the new government.
The institute added, "However, with the presidential election scheduled for early June, legislative discussions aimed at expanding real estate supply?such as the Special Act on Reconstruction, the Special Act on Public Housing, and the amendment to the Private Rental Housing Act?are being delayed. It will be important to monitor how the results of the election may affect the real estate market going forward."
Meanwhile, the pre-sale price outlook index for this month is expected to decrease by 2.1 points from the previous month, due to reduced demand for raw materials caused by the construction market downturn.
However, the pre-sale volume outlook index is projected to rise by 5.4 points, and the unsold volume outlook index is expected to increase by 12.1 points.
Regarding the rise in the pre-sale volume outlook index, the Housing Industry Research Institute explained, "This appears to be due to the easing of political uncertainty following the conclusion of the impeachment crisis, which has prompted business operators to proceed with planned pre-sales, as well as expectations for the implementation of large-scale economic stimulus measures through a supplementary budget."
On the increase in the unsold volume outlook index, the institute stated, "This is because continued increases in pre-sale prices have led to a burden of high prices, and concerns about economic slowdown have further dampened demand."
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