Diverging Outlooks for September Pre-Sales in Gwangju and Jeonnam: Gwangju at 100, Jeonnam at 60

Gap Between Gwangju and Jeonnam Widens from 22.2 Points to 40 Points
Jeonnam Drops by 28.9 Points... Largest Decline Nationwide

The outlook for the September apartment pre-sale market in both Gwangju and Jeonnam has worsened. In particular, the gap in the outlook index between the two regions expanded from 22.2 points to 40 points within a month, as the decline in Jeonnam became more pronounced.

According to the "September Apartment Pre-Sale Outlook Index" released by the Housing Industry Research Institute on September 9, Gwangju recorded 100.0 and Jeonnam 60.0. This represents a drop of 11.1 points and 28.9 points, respectively, compared to the previous month. Jeonnam saw the largest decrease nationwide.

Prospective applicants visiting the model home of 'All New Champions City Phase 1,' which opened on the 4th in Imdong, Buk-gu, Jeonnam Gwangju Integrated Special City, are examining the complex model and interior layouts. On that day, a line formed in front of the model home as people waited to enter, and visitors also gathered around the internal consultation area and the complex model. Champions City Phase 1 consists of 3,216 households and will begin its subscription schedule starting with special supply on the 14th. Photo by Bohyun Song

The outlook index reflects how housing developers perceive the future conditions of the pre-sale market. It is calculated by subtracting the percentage of negative responses from positive responses and adding 100. If the index exceeds 100, more businesses are optimistic; if it falls below 100, pessimism prevails.

Gwangju dropped from 111.1 last month to 100.0 this month, indicating that positive and negative expectations are now balanced. Meanwhile, Jeonnam fell from 88.9 to 60.0 during the same period, signaling a stronger outlook of pessimism.

This survey was conducted from August 19 to 28 among member companies of the Korea Housing Association and the Korea Housing Builders Association. The results reflect housing developers’ projections for market conditions in September and do not account for subsequent visitor reactions to model homes or actual subscription results.

The Housing Industry Research Institute attributed the drop in the outlook index to continued unsold apartment backlogs and weakening housing demand in the provinces, as well as increased financial burdens due to rising interest rates.

This content was produced with the assistance of AI translation services.