Last year, Seoul was the only city among the 17 nationwide to see an increase in housing construction compared to the previous year. The total number of housing units constructed nationwide and in the metropolitan area was the lowest since 2005, according to data released by the Ministry of Land, Infrastructure and Transport. This year, construction in Seoul has also turned downward.
On October 6, Ajou Economics reported that a re-evaluation of housing construction data from 2005 to 2025, including last year's confirmed figures, revealed that nationwide construction totaled 300,403 units, the lowest in 21 years. The metropolitan area recorded 143,542 units, also a record low.
This figure represents a 11.3% decrease from the previous low of 338,813 units in 2011, and a 9.6% drop from 158,731 units in 2006 for the metropolitan area.
In Seoul, construction increased by 19.4% from 39,119 units in 2024 to 46,708 units last year, while the other 16 regions all saw declines. The total for these regions fell from 377,263 units to 253,695 units, a decrease of 32.8%.
In the metropolitan area, Gyeonggi Province experienced the largest decline. Construction in Gyeonggi dropped from 123,414 units to 82,390 units, a 33.2% decrease, marking the lowest level since 2005. The reduction of 41,024 units accounted for 85.4% of the total decline in the metropolitan area. Incheon also saw a significant drop, with construction falling from 29,073 units to 14,444 units, a 50.3% decrease.
In non-metropolitan areas, construction decreased from 224,776 units to 156,861 units, a 30.2% decline. Sejong experienced the largest drop at 89.8%, followed by Daegu at 56.2%, North Gyeongsang at 51.2%, and Jeju at 46.9%.
The downward trend continued this year. According to the Ministry of Land, Infrastructure and Transport, nationwide construction from January to August totaled 150,664 units, a 27.2% decrease compared to the same period last year. The metropolitan area saw a 21.6% decline to 80,075 units, while non-metropolitan areas experienced a 32.5% drop to 70,589 units. In Seoul, construction fell by 19.1% to 25,630 units.
The contraction in non-apartment supply is also notable. Last year, apartment construction totaled 269,875 units, a 27.9% decrease from the previous year. Non-apartment construction fell from 42,076 units to 30,528 units, a 27.4% decline, the lowest since 2005.
Heo Yoon-kyung, a researcher at the Korea Construction Industry Institute, attributed the recent decline in construction to sluggish starts in 2022 and 2023. Rising material and construction costs, high interest rates, and a tightening of real estate project financing contributed to the slowdown. The Ministry of Land, Infrastructure and Transport also cited the decrease in construction starts from 2022 to 2024 as a reason for the drop in occupancy.
Jin Mi-yoon, a professor at Myongji University's Graduate School of Real Estate, stated, "The government needs to support the transition of delayed projects due to real estate financing or construction cost burdens into construction and restore the financial supply base for small and medium-sized rental non-apartments in urban areas. It is time to manage all processes from construction starts to completion and occupancy through policy."
* This article has been translated by AI.
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