Jeonnam Gwangju Sees Rise in Housing Starts and Pre-Sale Approvals... But Cumulative Permits and Completions Decline

Construction Starts Up 158.7% and Pre-Sale Approvals Surge 247.5% from January to August
Permits Down 44.2%... Unsold Homes in August Decrease 2.0% from Previous Month

Housing construction indicators in Jeonnam Gwangju showed mixed trends. From January to August of this year, housing construction starts and housing pre-sale approvals surged compared to the same period last year, but permits and housing completions declined. By the end of August, the number of unsold homes decreased from the previous month, but both home sales and jeonse/monthly rental transactions also fell.

According to the “August 2026 Housing Statistics and Final 2025 Housing Construction Performance” released by the Ministry of Land, Infrastructure and Transport on September 30, housing construction starts in Jeonnam Gwangju reached 10,373 units from January to August, an increase of 158.7% from 4,009 units during the same period last year. In August alone, 3,600 units started construction, up 190.3% from 1,240 units in August last year.

On September 4th, prospective applicants visiting the model house of 'All New Champions City Phase 1,' which opened in Imdong, Buk-gu, Jeonnam Gwangju Integrated Special City, were examining the site model and internal structures. Photo by Bohyun Song

Approvals for pre-sales of multifamily housing also increased. For the January–August period, there were 5,213 approved units, up 247.5% from 1,500 units over the same period last year. In August, 638 units were approved, compared to zero units in August last year. These pre-sale statistics cover approvals for collective housing subject to move-in recruitment under the Housing Act.

In contrast, both the monthly and cumulative housing permit figures declined. Between January and August, housing permits in Jeonnam Gwangju totaled 7,274 units, down 44.2% from 13,029 units a year earlier. This decline was much greater than the national decrease of 4.6% and the 15.8% decrease in non-metropolitan regions.

In August, permits dropped to 174 units, a 33.1% decrease from 260 units a year earlier. While construction starts and pre-sale approvals increased, the decline in permits indicated that the overall construction indicators did not rise across all metrics.

Although housing completions rose in August, the cumulative figure still lagged last year’s level. There were 1,460 completions in August, up 493.5% from 246 units in the same month last year. However, cumulative completions for January to August reached 8,460 units, marking a 38.1% drop from 13,659 units for the same period last year. This decrease exceeded the national decline of 27.2% and the non-metropolitan drop of 32.5%.

The number of unsold homes, both in total and after completion, declined compared to the previous month. At the end of August, there were 3,642 unsold homes in Jeonnam Gwangju, a decrease of 74 units or 2.0% from 3,716 units at the end of July. This contrasts with the national increase of 1.3% and the 2.5% increase in non-metropolitan areas during the same period.

Post-completion unsold homes in Jeonnam Gwangju amounted to 2,381 units, down 41 units or 1.7% from 2,422 units the previous month. Compared to the end of last year, total unsold homes dropped from 4,119 to 3,642 units, and post-completion unsold homes declined from 2,605 to 2,381 units.

Transaction indicators varied by comparison period. Based on contract notification date, housing sales transactions in Jeonnam Gwangju during August totaled 2,982 cases, a 19.9% drop from 3,724 cases in the previous month.

Although this represented a 6.2% increase from 2,809 cases in August last year, it was 17.7% lower than the five-year average. While last month’s figure exceeded the same month last year, it fell short of both the previous month and the five-year average.

Jeonse/monthly rental transactions decreased compared to the previous month, the same month last year, and the five-year average. The August transaction count was 6,655 cases, down 4.4% from 6,962 cases the previous month and 13.1% from 7,654 cases a year earlier.

This was also 16.1% lower than the five-year average. Jeonse/rental transaction statistics reflect reports or contracts that have received a confirmation date and do not constitute national official statistics.

Looking at other regions including Seoul, cumulative permits displayed diverging trends between the Seoul metropolitan area and non-metropolitan regions. The metropolitan area recorded 96,056 permits from January to August, up 5.4% year-on-year; of this, Seoul’s permits surged 40.4% to 39,940 units.

Meanwhile, non-metropolitan regions saw a 15.8% decrease, totaling 67,879 permits. Nationwide, cumulative construction starts and pre-sale approvals rose 10.8% and 35.3% respectively, while completions fell 27.2%.

Housing sales transactions in August declined compared to the previous month across the country. Nationwide, transactions totaled 48,359 cases—down 23.5%. Transaction volume decreased by 25.9% in the metropolitan area and 20.5% in non-metropolitan regions.

Seoul recorded 7,884 total home sales transactions, a decrease of 27.3%. Nationwide, unsold homes rose 1.3% to 69,134 units, but unsold homes after completion dropped 3.7% to 28,080 units.

In addition, the finalized national housing construction statistics for 2025 released alongside this report showed 388,000 permits, 272,000 construction starts, and 300,000 completions. Confirmed completions were 42,000 units fewer than the provisional total of 342,000 units.

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