Housing permits in Seoul saw a dramatic increase of over 600% compared to the same month last year. In contrast, housing transactions experienced a decline of more than 20% from the previous month, indicating a cooling market.
According to the Ministry of Land, Infrastructure and Transport, the nationwide housing permits for August 2026 reached 21,607 units, a 25.6% increase from the same month last year. In the metropolitan area, permits totaled 15,470 units, marking a 105.6% rise year-on-year.
Seoul's growth was particularly notable, with 11,306 housing permits issued in August, up 604.4% from 1,605 units in the same month last year. Cumulatively, from January to August, permits reached 39,940 units, a 40.4% increase compared to the same period last year.
Conversely, permits outside the metropolitan area decreased. In August, non-metropolitan permits totaled 6,137 units, down 36.6% from the previous year, with cumulative permits from January to August at 67,879 units, a 15.8% decline.
Construction starts nationwide increased by 9.3% year-on-year, totaling 18,013 units. While construction starts in the metropolitan area decreased by 1.7% to 8,845 units, non-metropolitan starts rose by 22.5% to 9,168 units. In Seoul, construction starts reached 1,172 units, a 14.6% increase from the previous year.
Sales figures also showed growth, particularly in the metropolitan area. Nationwide, the sale of apartment units in August was 17,295, a 3.7% increase from the same month last year. Metropolitan sales rose by 40.6% to 14,587 units, while non-metropolitan sales fell by 57.1% to 2,708 units. In Seoul, sales decreased by 27.6% to 1,473 units compared to the previous year.
Completion figures showed a downward trend. Nationwide, completions in August totaled 15,151 units, down 10.7% from the previous year. However, completions in the metropolitan area increased by 12.5% to 8,871 units, while Seoul saw a significant rise of 178.1% to 4,714 units. Non-metropolitan completions decreased by 30.9% to 6,280 units.
The number of unsold homes slightly increased. At the end of August, there were 69,134 unsold homes nationwide, a 1.3% increase from 68,217 the previous month. In the metropolitan area, unsold homes decreased by 1.7% to 19,136 units, while non-metropolitan unsold homes rose by 2.5% to 49,998 units.
Post-completion unsold homes decreased. At the end of August, there were 28,080 post-completion unsold homes, down 3.7% from 29,152 the previous month.
The transaction market has contracted. In August, housing transactions totaled 48,359, a 23.5% decrease from 63,185 in the previous month. In the metropolitan area, transactions fell by 25.9% to 25,740, while non-metropolitan transactions decreased by 20.5% to 22,619.
In Seoul, housing transactions dropped by 27.3% to 7,884. Among these, apartment transactions fell by 30.1% to 4,589 from 6,564 the previous month.
Rental transactions also declined. In August, rental transactions totaled 199,204, down 5.6% from the previous month. In the metropolitan area, transactions decreased by 6.3% to 134,394, while non-metropolitan transactions fell by 4.0% to 64,810.
The decline in jeonse (long-term lease) transactions was significant. In August, jeonse transactions totaled 59,749, down 12.7% from the previous month and 17.7% from the same month last year. Monthly rental transactions were 139,455, a 2.2% decrease from the previous month. From January to August, the proportion of monthly rental transactions was 68.5%, an increase of 6.3 percentage points from the same period last year.
The Ministry of Land, Infrastructure and Transport also released confirmed statistics for housing construction in 2025. The confirmed number of permits last year was 388,000, an increase of 8,500 from the preliminary figure, while confirmed construction starts totaled 272,000, a decrease of 500 from the preliminary figure. Confirmed completions were 300,000, down 42,000 from the preliminary figure.
The ministry stated, “In the case of completion figures, significant discrepancies arose due to some overlapping quantities being counted during the preliminary production process, such as temporary usage approvals. Since October of last year, we have improved the method of counting completion figures based on the initial usage approval date to prevent double counting.”
While the surge in permits and completions in Seoul is notable, the simultaneous decline in sales and rental transactions raises questions about whether the improvement in supply indicators will lead to actual market stability.
* This article has been translated by AI.
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