Expectations for Rising Home Prices and Wages Grow Amid Semiconductor Bonuses and Stock Gains

[Economy 365]

Consumer expectations for rising home prices and wages have increased, driven by a strong semiconductor market and the distribution of performance bonuses in the IT sector.

According to the Bank of Korea, the housing price outlook index for June stood at 120, an increase of 8 points from the previous month.

The index, which had fallen to 96 in March of this year, rose to 104 in April and 112 in May, reaching 120 in June and recovering to levels seen at the beginning of the year.

The wage level outlook index also rose by 2 points to 124, marking the highest level since July of last year.

The Bank of Korea analyzed that the rise in apartment prices in Seoul and Gyeonggi Province, the favorable semiconductor market, and the payment of performance bonuses in the IT industry have influenced these trends.

The composite consumer sentiment index rose 0.5 points from the previous month to 106.6, marking two consecutive months of growth.

On the other hand, the interest rate level outlook index, which forecasts interest rates six months ahead, jumped 12 points in one month to 126, recording the largest increase in 9 years and 6 months since December 2016.

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