Seoul home price expectations rise as housing market sentiment hits 13-month high

[Financial News] As expectations for rising home prices in Seoul grew, consumer sentiment in the real estate market showed signs of recovery. Sentiment in the housing sales market in the Seoul metropolitan area improved sharply, while land market sentiment continued to decline, highlighting a clear divide between market segments. The Korea Research Institute for Human Settlements said on the 16th that its May real estate market consumer sentiment index, which covers both housing and land, came in at 111.4, up 2.7 points from the previous month.
The real estate market consumer sentiment index is based on a survey of 6,680 households and 2,338 real estate agencies in 152 local governments nationwide. The index is calculated on a scale of 0 to 200, and a reading above 100 means that more respondents expect prices to rise or transactions to increase than those expecting declines or decreases.
Housing market sentiment rose even more sharply. The nationwide housing market consumer sentiment index, including both sales and jeonse, stood at 111.8, up 3.1 points from the previous month. The Seoul metropolitan area rose 4.5 points to 122.1, while non-metropolitan regions increased 1.2 points to 106.3.
By region, sentiment improved notably in Seoul and Gyeonggi Province. Seoul posted 129.9 and Gyeonggi Province 120.1, both the highest levels in the past year. Incheon was recorded at 110.5.
The nationwide housing sales market consumer sentiment index rose 4.7 points from a month earlier to 116.7. The Seoul metropolitan area led the increase, climbing 6.1 points to 125.2, while non-metropolitan regions rose 2.3 points to 106.3.
In particular, Seoul's housing sales market consumer sentiment index reached 135.6, the highest level since January this year, when it stood at 138.2. Gyeonggi Province was at 122.2, and Incheon at 111.8.
Sentiment in the jeonse market also continued to rise. The nationwide jeonse market consumer sentiment index came in at 113.2. The Seoul metropolitan area rose 3.0 points from the previous month to 119.0, while non-metropolitan regions edged up just 0.2 points to 106.3.
By contrast, land market sentiment weakened. The nationwide land market consumer sentiment index fell 1.9 points from the previous month to 79.1. The Seoul metropolitan area dropped 2.1 points to 85.0, and non-metropolitan regions fell 2.4 points to 76.2, remaining well below the benchmark of 100.
going@fnnews.com Choi Ga-young Reporter