After a month, the Seoul index has risen again, while the Sejong housing market sentiment index has sharply declined due to diminished expectations about the relocation of the presidential office.
As Seoul’s housing prices fluctuate, the consumer sentiment index for buying homes is also rising. According to the ‘May Real Estate Market Consumer Sentiment Survey’ released by the Korea Research Institute for Human Settlements on the 17th, Seoul’s housing market consumer sentiment index rose by 11 points to 131.5 from the previous month. The index for Seoul increased from January to March (110.4→124.7→136.1) but fell in April (120.5) with the expansion of the designated land transaction permit areas. However, with the recent rise in Seoul home prices, the index surged again in just a month.
The real estate market consumer sentiment index indicates an increase in price and transaction responses if it exceeds 100 compared to the previous month. Specifically, below 95 represents a declining phase, 95 to below 115 represents a stable phase, and above 115 indicates a rising phase.
As Seoul’s index rises, the metropolitan area’s index also recorded 118.3, switching to a rising phase. The national housing market consumer sentiment index recorded 113, a 4.3-point increase from the previous month (108.7), but remains at a stable phase level.
The significant drop in the Sejong index also draws attention. The May consumer sentiment index for the Sejong housing market was recorded at 133.2, a decline of 24.4 points from the prior month (157.6). This is attributed to the decision to relocate the presidential office from Yongsan back to the Blue House. This suggests that the heightened anticipation for the relocation of the presidential office to Sejong, prevalent throughout the election phase, has diminished. The survey conducted from May 19 to June 10 reflects the psychological state after the June 3 presidential election.
The national housing lease market consumer sentiment index slightly rose to 101 from the previous month’s 100.7. During the same period, Seoul’s index slightly increased from 105.7 to 105.8, while the non-metropolitan area remained low at 98.6.