Number of housing permits sinks 25 pct in H1

SEOUL, July 26 (Yonhap) -- The number of South Korea's housing permits plunged
more than 25 percent in the first half of this year amid a prolonged market
slump, government data showed Sunday.
A total of 98,961 housing permits were issued in the January-June period, down
25.2 percent from the same period a year earlier, according to data released by
the Ministry of Land, Transport and Maritime Affairs.
Housing permits issued to public builders in the first half surged 53.2 percent
from a year earlier to 28,634, but those for private companies nose-dived 38.1
percent to 70,327, the data showed.
The first-half tally shows that private builders remain hesitant to increase the
housing supply due to the severe slump in the housing market and a government-set
cap on the price of new apartments, market watchers said.
The price cap is in place to fend off a surge in apartment prices, which has been
a headache for government policymakers.
Industry sources said the first-half tumble raises concerns that the government
may not be able to achieve its target of supply 430,000 new apartments for this
year.
The local housing market has been in the doldrums as the South Korean economy,
Asia's fourth-largest, remains in its worst slump in more than 11 years.
In the April-June period, the economy shrank 2.5 percent from a year earlier,
though it grew 2.3 percent from three months earlier. The government expects the
economy to contract 1.5 percent annually for all of this year.
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