The expectation that housing prices will rise is growing again this month, as the sentiment regarding housing price expectations, which had been decreasing for five consecutive months, is reviving.
According to the ‘March Consumer Sentiment Survey Results’ released by the Bank of Korea on the 25th, this month’s Housing Price Outlook Index (CSI) was recorded at 105. This is an increase of 6 points compared to the previous month. The Bank of Korea explained that the rise is not very significant, noting that similar figures were recorded in June and July of last year.
The Housing Price Outlook Index reflects the forecast of housing prices one year from now compared to the current housing prices. A figure over 100 implies a greater expectation of a rise in housing prices. Conversely, a figure below 100 means more people expect housing prices to decline.
The Bank of Korea attributed the impact to the significant rise in apartment and housing sale prices in February. It also analyzed that the increase in transaction volume, particularly in Seoul and Gyeonggi Province, had an influence.
Regarding the outlook for housing prices, Lee Hye-young, head of the Economic Sentiment Survey Team at the Bank of Korea’s Economic Statistics Department 1, stated, “In addition to the influence of the land transaction permit system, a plan to strengthen household debt management also emerged,” and added, “We need to observe the trend over time to see to what extent it will have an impact.”
The ‘Consumer Sentiment Index’ (CCSI), which reflects consumers’ perception of the overall economic situation, was recorded at 93.4, a decrease of 1.8 points from the previous month. The Bank of Korea analyzed that this slight decline compared to the previous month was due to concerns of weakening growth momentum from domestic sluggishness and a slowdown in export growth.
The Household Income Outlook (CSI), which predicts household income, dropped by 1 point from the previous month to 96 points. The Interest Rate Outlook (CSI), which anticipates the level of future changes in interest rates, decreased by 7 points to 92 from the previous month.