“If it’s late, I don’t have my home”… Home consumption sentiment surges due to anxiety

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In the real estate market, the craze for building my own home is burning. Despite the government’s successive announcements of high-intensity regulations, the rushing home prices are fueling consumer anxiety that’if it is late, I will not be able to get my home.’ The stimulated housing consumption sentiment is reflected in the subscription market, such as a surge in subscription competition and an increase in the number of subscribers. Industry experts are concerned that panning buying (panic buying), caused by consumer buying sentiment, could further increase unless the government can come up with a suitable solution for rising house prices.

According to the’Consumer Sentiment Index for the Real Estate Market for November 2020,’ released by the Korea Institute for Land, Infrastructure and Transport, the national housing market (sales, jeonse) consumer sentiment index (134.9) rose 3.6 points from the previous month. The metropolitan area (134.5) rose 2.5 points from the previous month, and the non-metropolitan area (135.2) also jumped 4.9 points during the same period.

Consumption sentiment index (compared to the previous month) by region rose 8.7 points to 141.1 in the whole country, while the metropolitan area (138.1) and the non-metropolitan area (144.3) rose 8.2 points and 9.3 points, respectively. By region, regions such as Ulsan 166.8, Daegu 159.5, Busan 153.4, Sejong 147.3, and Gwangju 145.2 led the rise in consumer sentiment.

The sentiment of consumers can also be confirmed in the number related to the subscription market. Last year, the nationwide No. 1 subscription competition rate (refer to real estate 114 data) was 27.51 to 1, significantly exceeding the competition rate in the previous three years (15.16 in 2019, 14.98 in 2018, and 1 in 2017). In particular, in the case of Seoul, where the craze for’a smart one’ is strong, the competition rate was 88.22:1. This is about 2.8 times and 2.9 times higher than in 2019 (31.6 to 1) and 2018 (30.37 to 1), respectively.

The number of subscribers has increased significantly. Last year, the number of nationwide first-ranked subscribers was 4.38,318,27, over the past five years (3.9 million 9711 in 2015, 4.2 million 690 in 2016, 2.226572 in 2017, 1.97 million 6220 in 2018, 2.31 million in 2019. 7114) The largest number of first-ranked subscribers came.

As such, the reason consumers are in a hurry to prepare their own home is definitely the reason for’real estate regulation’. Last year alone, the government poured out various demand restraints and supply measures, such as the ‘2/20 countermeasures’, the ‘6-17 countermeasures’, the ‘7/10 countermeasures’, and the ’12-17 countermeasures’. As the conditions for the provision of homes deteriorated, with most regions of the country being additionally designated as areas for adjustment, it is interpreted that the mainstream homeless people were pushed into the subscription market before stronger regulations came out.

The rise in apartment sales prices also stimulated anxiety. During the past year, the monthly sales price per 3.3㎡ of apartments nationwide rose 7.8% (1,1330,000 won in January → 16.31 million won in December, see data from the Korea Real Estate Agency) without a single drop.

Business sites targeting consumers who are planning to build their own home from the beginning of the year are also selling one after another. Representative workplaces include’Pyeongtaek Jijeyeokzai’ (only 59~113㎡ 1052 households), A3 block of Yeongshin urban development district in Pyeongtaek, and’Deoksugung Depalace’ in Jongno-gu, Seoul (118-234㎡ for apartments and 40-128㎡ for officetel only 40-128㎡ 170 Thread), etc.

An official from the housing industry said, “Before the new government regulation comes out and market turmoil aggravates, the number of consumers trying to buy my house is increasing.” As it is preferred, the increase in subscription competition is expected to continue for the time being.”

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