Housing Sales Consumer Sentiment Dips Slightly Amid Tax Reform Proposals and Other Factors

Consumer sentiment regarding housing sales appears to have cooled slightly, influenced by factors such as the government's announcement of tax reform proposals.

According to the real estate market consumer sentiment survey for August released by the Korea Research Institute for Human Settlements, the nationwide housing sales market consumer sentiment index stood at 115.1 last month, dropping 1.0 point from the previous month (116.1).

The real estate market consumer sentiment index is released every month based on surveys conducted among operating real estate agencies and ordinary households in 152 cities, counties, and districts across the country.

An index exceeding 100 indicates that there are more responses saying prices have risen or transactions have increased.

The index is categorized into a downturn phase for below 95, a flat phase for 95 or higher and below 115, and an upward phase for 115 or higher.

By region, the metropolitan area fell from 123.4 in July to 122.3 in August, but maintained its upward phase, while non-metropolitan areas declined from 107.6 to 106.9, continuing a flat phase.

In particular, Seoul's housing sales consumer sentiment index, which reacted sensitively to the government's tax reform announcement, plummeted by 7.4 percentage points from 139.9 to 132.5. Conversely, Sejong rose by 11.4 points from 101.5 to 112.9, driven by favorable factors such as the relocation of central administrative agencies.

The housing jeonse (lump-sum lease) market consumer sentiment index nationwide rose by 0.8 points from 112.7 in July to 113.5 in August, maintaining a flat phase.

Last month, Seoul's housing jeonse consumer sentiment index edged down to 120.7 from 121.8 in July, whereas Gyeonggi Province rose from 117.4 in July to 118.9 in August.

The nationwide land market consumer sentiment index recorded 79.6%, down 1.3 points from the previous month (80.9), maintaining a downturn phase.

(Photo provided by Korea Research Institute for Human Settlements, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.