With rising interest rates... Economic outlook for housing business operators in Seoul and Gyeonggi Province declines significantly in November

Due to the increased burden of purchasing a home due to rising interest rates and the slowdown in the growth of apartment prices in Seoul, housing business owners' outlook for the housing business has declined.

As a result of a survey of housing business operators conducted by the Housing Industry Research Institute (Joosan Research Institute) on the 12th, the housing business outlook index for November was 92.1, up 5.7 points from the previous month.

If the housing business outlook index exceeds the baseline of 100, it means that the proportion of companies with an optimistic outlook on the economy is higher. If it is below 100, the opposite is true.

The metropolitan area was expected to drop by 14.4 points to 85.8.

Seoul (86.8) fell by 23.2 points and Gyeonggi (83.3) by 16.7 points, which was a large decline, while Incheon (87.5) fell by 3.1 points.

Joo San-yeon said, “The index has fallen significantly as the burden of purchasing a home has increased due to rising interest rates and the wait-and-see attitude for buying in expensive areas has spread,” and added, “The market situation in which the overall price increase in Seoul is slowing, including a decrease in housing sales transactions in Seoul and a decline in apartment prices centering on the Gangnam 3 districts, has also increased uncertainty about future housing demand.”

Non-metropolitan areas (93.4) ​​rose 10.0 points, showing conflicting outlooks.

Jeonbuk (100.0, 25.0 points ↑), Jeonnam (81.8, 21.8 points ↑), Gangwon (90.9, 21.7 points ↑), Chungbuk (100.0, 20.0 points ↑), Gyeongbuk (100.0, 20.0 points), Sejong (107.1, 13.8 points ↑), etc. The region is expected to rise.

In North Chungcheong Province, expectations of revitalizing the local economy due to large-scale investments in the semiconductor industry, and in Sejong, the announcement of additional relocation plans for central administrative agencies appear to have acted as positive factors.

The funding index in November was forecast to drop 11.0 points to 69.8.

It was analyzed that this was reflected in the fact that the burden of financial costs increased due to the rise in loan interest rates, and business sentiment was weakened.

The material supply and demand index (98.3) rose by 3.2 points due to expectations of easing the burden of imported raw material costs due to the decline in exchange rates.