Housing starts falling by more than 10% for 2 consecutive months Impact of new corona or June 30 16:36
The number of new housing starts nationwide last month fell by more than 12% compared to the same month last year, mainly due to a large drop in "owned homes," which indicates custom-built homes. The drop of more than 10% was for the second consecutive month, and it seems that the new coronavirus had a delay in the procedures for the start of construction.
According to the Ministry of Land, Infrastructure, Transport and Tourism, the number of housing starts nationwide last month was 63,682, a 12.3% decrease from the same month last year.
The number of new housing starts has decreased for 11 consecutive months, and the number of housing starts has dropped by more than 10% for 2 consecutive months.
Looking at the breakdown, the drop in “owned houses” indicating custom-built homes was large, a decrease of 20.7% to 19,696 units.
It is the first time in 5 years and 5 months that the number of “owned homes” will decrease by 20% or more, since December 2014 when the consumption tax rate was raised from 5% to 8%.
In addition, “rental homes” such as rental apartments decreased by 8.1% to 24,040 units, and “condominiums” decreased by 7.6% to 19,602 units.
The Ministry of Land, Infrastructure, Transport and Tourism said, "There were cases in which procedures for construction, mainly for owning homes, were delayed because there was an emergency declaration nationwide in May. The decline trend continues due to the new coronavirus. Isn't it?"