Housing Supply Indicators Fell Across the Board Last Year: Permits Down 13%, Construction Starts Down 10%

Ministry of Land Releases December Housing Statistics

Last month, the number of housing permits issued in Seoul was tallied at 2,576 units, marking an 86% decrease compared to the same period last year. On an annual basis, the total for the past year also fell by 19% from the previous year, indicating a deterioration in housing supply indicators. The number of housing permits, which reflects approvals received from the relevant authorities, is considered a leading indicator for forecasting housing supply.

On January 30, the Ministry of Land, Infrastructure and Transport released housing statistics for December reflecting these trends. Nationwide, the annual number of permits issued was 379,834 units, a 13% decrease from the previous year. In Seoul, the figure dropped by 19%, in the greater metropolitan area by 5%, and in provincial regions by 22%.

Last year, the number of housing starts nationwide was 272,685 units, a 10% decrease from the previous year. While there was a slight increase in the metropolitan area, the number fell by 25% in provincial regions, resulting in an overall downward trend. The number of housing units offered for sale was 198,373, a 14% decrease over the same period. The number of housing completions (move-ins) was 342,399 units for the year, down 18%.

Apartment near Gwacheon Station, Gwacheon City. Photo by Yonhap News

Last year, the number of home sales transactions nationwide was 726,111, a 13% increase from the previous year. In Seoul, despite restrictions due to land transaction permit zones, the annual transaction volume exceeded 120,000 units-a 36% increase from the previous year. The rise in transactions was particularly notable for apartments.

The number of jeonse and monthly rent transactions was 2,791,795, up 9% over the same period. On an annual basis, monthly rent transactions accounted for 63% of all lease contracts. Considering that the average monthly rent ratio over the past five years was below half, the shift toward monthly rent is accelerating.

As of the end of last month, the number of unsold homes stood at 66,510 units, a 3% decrease from the previous month. The number of unsold homes after completion was 28,641 units, down 2%.