Nationwide Apartment Occupancy Outlook Index Rises by 7.6 Points
Seoul Surges by 22.4 Points, Surpassing 110 for the First Time in Seven Months
The nationwide apartment occupancy outlook index rose this month. The Housing Industry Research Institute (Jusan-yeon) explained that as home prices continue to rise, particularly in the Seoul metropolitan area, demand for moving into new apartments is increasing.
According to the Housing Industry Research Institute on May 13, a survey of housing business operators found that the nationwide apartment occupancy outlook index for this month was 95.1, up 7.6 points from the previous month. This index predicts whether people who have purchased apartments will be able to pay the balance and move in as scheduled. An index above 100 indicates that more respondents have a positive outlook on occupancy market conditions, while a figure below 100 means the opposite.
By region, the Seoul metropolitan area rose by 12.6 points to 99.0. In Seoul, the index increased by 22.4 points to 110.2 compared to the previous month. Incheon rose by 3.9 points to 89.6. Gyeonggi Province also increased by 11.5 points to 97.2.
This is the first time in seven months, since October 2024, that Seoul's occupancy outlook index has surpassed 110. With apartment sale prices rising for 14 consecutive weeks, expectations for a market recovery are spreading across the metropolitan area.
Among major cities, Daejeon remained flat at 100.0, and Ulsan fell by 7.6 points to 100.0. Excluding these, Gwangju rose by 12.8 points, Daegu by 9.6 points, and Busan by 5.0 points. Sejong recorded the highest figure in the country, rising by 1.47 points to 123.0. Among provincial regions, Chungbuk rose by 25.0 points and Chungnam by 16.7 points. Gyeongbuk was the only provincial region to decline, falling by 7.0 points to 81.8.
The Housing Industry Research Institute stated, "The decline in lending rates and the spread of rising home prices in core areas of the Seoul metropolitan area, as well as in large provincial cities such as Ulsan and Sejong, have fueled expectations for a market recovery." The institute added, "Demand is also concentrating ahead of the scheduled implementation of the third phase of the stress-based Debt Service Ratio (DSR) regulations in July, as buyers seek to avoid new restrictions."
It further noted, "However, the resolution of uncertainties in global trade order among major countries and political and market risks at home and abroad, including changes following the June presidential election, are expected to act as additional variables going forward."
Last month, the nationwide apartment occupancy rate was 73.7%, up 13.9 points from the previous month.
In the Seoul metropolitan area, the occupancy rate increased slightly from 81.5% to 83.5%. In major cities, it jumped from 49.6% to 65.9%, and in other regions, it rose sharply from 59.3% to 75.9%.
The occupancy rate in the metropolitan area has remained in the 80% range for three consecutive months. In non-metropolitan areas, the rate climbed by 16.5 points during this period, reaching 71.6%, thereby narrowing the gap.
Within the metropolitan area, Seoul's occupancy rate rose by 0.4 points to 91.0%. Incheon and Gyeonggi Province both increased by 2.8 points to 79.7%.
Among the reasons for non-occupancy, delays in selling existing homes (from 40.7% to 36.5%) and difficulties in securing balance loans (from 31.5% to 28.8%) both decreased, indicating improved conditions for actual homebuyers. Delays in selling pre-sale rights (from 7.4% to 5.8%) also declined, but the proportion of cases where tenants could not be secured increased (from 13.0% to 19.2%).
The Housing Industry Research Institute commented, "This is attributed to the overlap between a prolonged backlog of unsold apartments and the seasonal concentration of supply targeting the spring moving season."
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