Seoul Metropolitan Area Housing Market Sentiment Rises in June

Consumer sentiment in the Seoul metropolitan area's housing market saw a modest increase in June, with the housing transaction consumer sentiment index rising by 2.2 points from the previous month to 127.4. This marks a continuation of the upward trend in market optimism.

The index, which surpasses 100 to indicate a prevalence of responses expecting price increases or increased transactions, showed varying performance across regions. Seoul's index climbed 2.4 points to 138.0, and Gyeonggi province saw a more significant rise of 3.5 points to 125.7. In contrast, Incheon's index dropped by 4.8 points to 107.0. Non-metropolitan areas also experienced a slight increase, with their index rising 2.5 points to 108.8, maintaining a stable market phase.

Meanwhile, the jeonse (long-term lease with a deposit) market sentiment index for the Seoul metropolitan area also remained in an upward phase, increasing by 0.4 points to 119.4. Seoul's jeonse index saw a slight decrease of 0.4 points to 123.8, while Gyeonggi's remained unchanged at 118.1. Incheon's jeonse index rose by 4.2 points to 113.4. Non-metropolitan areas saw a slight dip of 0.5 points to 105.8, staying within the stable phase.

These sentiment shifts coincide with actual market movements. According to data from the Korea Real Estate Board, the average sale price of housing in Seoul increased by 1.03% in June compared to the previous month. Gyeonggi province saw a 0.59% rise, significantly influenced by the booming semiconductor belt areas. Specifically, Dongtan-gu in Hwaseong City experienced a sharp 6.81% price surge in June alone. In response to these rapid price increases, the government designated Dongtan-gu in Hwaseong City, Giheung-gu in Yongin City, and Guri City as regulated zones and land transaction permit areas on May 30th.