The Housing Industry Research Institute reported on the 9th that Seoul apartment occupancy rates fell to 86.4% in June, down 4.6 percentage points from May. Incheon-Gyeonggi occupancy also declined 0.2 percentage points to 81.4%, bringing the overall metropolitan area occupancy rate to 83.0%, a 1.8 percentage point decrease from the previous month. The institute attributed the decline to insufficient improvements in actual move-in conditions, including existing home sales and mortgage loan availability. The data reflects ongoing challenges in South Korea's housing market, where regional disparities in occupancy rates persist across metropolitan and non-metropolitan areas.
June Occupancy Rates Decline Across Metropolitan Regions
Non-metropolitan regions experienced varied occupancy trends. Daegu-Busan-Gyeongsang region recorded 64.5%, Daejeon-Chungcheong region 68.4%, and Gwangju-Jeolla region 68.8%, all declining from the previous month. Jeju region (73.5%) and Gangwon region (62.5%) showed increases. The national apartment occupancy rate stood at 69.9%, down 1.3 percentage points from the previous month.
![June vs May occupancy rates]()
Reasons for non-occupancy included delays in selling existing homes (36.7%), unavailability of balance payment loans (26.5%), inability to secure tenants (20.4%), and delays in selling pre-sale rights (2.0%). The institute noted that regions outside the metropolitan area continue to experience sluggish existing home transactions.
July Outlook Improves in Seoul and Semiconductor Belt Areas
The July apartment move-in outlook index for Seoul reached 118.7, up 16.0 points from the previous month. This marks the second consecutive month above the baseline of 100, indicating expanding positive sentiment. Gyeonggi province recorded 100.0, surging 27.8 points from the previous month, driven primarily by semiconductor belt regions. The overall metropolitan area index rose to 102.6, up 20.9 points, reflecting dominant optimism about move-in prospects.
Non-metropolitan regions also showed positive trends. Daegu (111.1), Ulsan (107.6), Sejong (107.6), and Daejeon (106.2) all exceeded the baseline of 100. Daegu's index rose most significantly, reflecting expectations that non-occupancy burdens will ease as unsold inventory after completion decreased by more than 20% since February and year-end move-in volume remains minimal. Gwangju, designated as a beneficiary region of the government's semiconductor mega-cluster initiative, rose to 93.3, up 15.6 points from the previous month.
![July apartment move-in outlook index]()
The institute stated that while commercial banks are tightening mortgage lending standards, liquidity from stock market activation may improve investment sentiment across the housing market for the time being.
FAQ
What caused Seoul apartment occupancy rates to decline in June?
The Housing Industry Research Institute attributed the June decline to insufficient improvements in actual move-in conditions, specifically delays in selling existing homes and unavailability of mortgage loans for balance payments.
Which regions showed positive apartment move-in outlook for July?
Seoul recorded a July outlook index of 118.7, while Gyeonggi province reached 100.0, driven by semiconductor belt areas. Non-metropolitan cities including Daegu (111.1), Ulsan (107.6), Sejong (107.6), and Daejeon (106.2) all exceeded the baseline of 100.
