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Summary of Korean Housing Start

Tai Jeong

By Tai Jeong

Country Director, Canada Wood Korea

May 6, 2019

Due to declining construction investment amid the ongoing government intervention to curb rising house prices and cool down the overheated housing market, South Korea’s housing starts for 2018 decreased 16% to 81,300 buildings and decreased 13.5% to 470,706 units.

Housing permits in a number of buildings and units for 2018 also decreased by 15.3% and 15.2% respectively from a year earlier.

In 2018, the number of wood building starts and permits decreased by 15.1% and 26% respectively. This was due to the overall slowdown of the housing market together with the more stringent requirements for seismic design on small scale buildings and soundproof floor requirement in Dagagu house.

Reflecting the market response to the government’s real estate regulations, the home purchase sentiment has dwindled to the lowest level in nearly six years. The Seoul’s Weekly Apartment Supply-demand Index stood at 73.2 as of Feb. 11.

Note:
Measured on a scale of 0 to200, with 100 indicating neutral status, the index refers to the ratio of apartments available for transactions