The number of construction permits issued for new homes climbed to the highest level for the first half in 12 years, the government said Thursday, reflecting a recovery in the local housing market.
In the first six months of the year, the number of new home permits issued came to 300,080, up 36.4 percent from the same period last year, according to the Ministry of Land, Infrastructure and Transport.
The figure marks the highest level since the first half of 2003, when 321,000 new home permits were issued.
“(The number of) construction permits issued rose greatly on growing demands for new homes that can also be seen in the average 10.8 persons applying for each new apartment unit sold in the first half,” a ministry official said.
The rise in the first half was largely attributed to a spike in the capital region.
In the January-June period, the number of new home construction permits issued in Seoul and its surrounding areas jumped 74.7 percent on-year to 160,550 while the number of permits issued in rural areas rose 8.9 percent to 139,530.
The capital region includes the western port city of Incheon and the entire Gyeonggi Province that, together with the capital, Seoul, are home to nearly half of the country’s 50 million people.
The apparent construction boom in the capital area came after a series of government measures aimed at revitalizing the real estate market, which included a 10-year reduction in the minimum age for large housing units, such as apartment buildings, eligible for reconstruction.
Also reflecting an apparent recovery in the real estate market, the number of groundbreakings for new housing units jumped 33.3 percent on-year to 288,844 in the first half, according to the ministry. (Yonhap)
