Gwangju and South Jeolla Consumer Sentiment Rises...Expectations for Housing Price Increases Plunge

Bank of Korea Gwangju-Jeonnam Headquarters Consumer Trend Survey

CSI for Consumer Prices, Housing Prices and Wage Level Outlook in Gwangju and Jeonnam. Provided by the Bank of Korea Gwangju-Jeonnam Branch

Consumer sentiment among residents of Gwangju and South Jeolla Province has risen, but expectations for housing price increases have fallen the most in 13 years.

According to a consumer trend survey conducted by the Bank of Korea Gwangju-Jeonnam Headquarters on 600 households (526 responses) in urban areas of Gwangju and South Jeolla Province, the Composite Consumer Sentiment Index (CCSI) for February stood at 115.7, up 3.7 points from the previous month. The Housing Price Outlook Index for February was 90 (nationwide: 108), down 25 points from the previous month. This was the largest decline since the housing price outlook survey began in January 2013.

The Housing Price Outlook Index had fallen to as low as 88 in January 2024 and remained below the baseline value of 100 through the beginning of this year. It then rose slightly with the launch of the new government, but plunged again as the government announced a series of regulatory measures targeting owners of multiple homes.

In contrast, the overall Composite Consumer Sentiment Index, helped by a booming stock market, reached its highest level since the survey began in August 2010. The Current Living Conditions Index, which reflects perceptions of household financial conditions, was 97, up 1 point from last month, and the Living Conditions Outlook Index rose 4 points to 103.

The Household Income Outlook Index (105) rose 4 points, while the Consumer Spending Outlook Index (115) was unchanged from the previous month.

The Current Economic Assessment Index (100) increased by 6 points, and the Future Economic Outlook Index (108) rose by 2 points.

The Employment Opportunity Outlook Index (101) climbed 6 points, and the Interest Rate Outlook Index (104) also rose by 2 points. The Price Level Outlook Index (135) and the Wage Level Outlook Index (121) each fell by 1 point from last month.