South Korean housing supply and construction trends

Data from the Ministry of Land, Infrastructure and Transport indicates an upward trend in Seoul’s housing supply indicators. Between January and August, housing permits in Seoul rose by 40.4% year-on-year, with a significant spike in August driven largely by the Eunma Apartment reconstruction project. While apartment construction starts increased by 34.3% during the first eight months of the year, actual completions saw a 23.3% decrease, suggesting a delay before new supply becomes available.

In response to market conditions, the South Korean government has implemented a regular bi-weekly briefing system to improve transparency regarding construction starts, sales, and move-in progress. As of mid-October, housing construction starts in the Seoul metropolitan area reached 99,000 units, approximately 37% of the annual target. The government expects to reach between 81% and 88% of its original annual goal by year-end.

To address gaps in general housing supply, which remains below the 10-year average, the government is expanding construction guarantees through the Korea Housing & Urban Guarantee Corporation and plans to establish an Integrated Housing Supply Support Center. Efforts are also underway to facilitate the move-in of approximately 100,000 public housing units in the metropolitan area through the end of next year.