SEOUL, KOREA - The domestic construction order booking volume last year hit a record-low level since 2002, largely because of the protracted slump in the housing market. According to figures announced by the Construction Association of Korea on February 5, last year's order volume won at home was 91,306.9 billion won, down 10.0 percent from 2012. This is the lowest number after 83.1 trillion won recorded in 2002.

 

The public sector saw its order volume rise 6.1 percent to 36,180.2 billion won, turning to the positive realm in four years. But the private sector order volume plunged 18.2 percent to 55,136.7 billion won. This is the first time since 2002 in which the private sector order booking amount fell below the 60-trillion-won level.

 

By construction type, public works rose 6.1 percent, buoyed by an increase in infrastructure orders and post-disaster reconstruction works. As for architectural orders, the volume rose 6.1 percent as well due to big projects such as the transfer of U.S. Army bases and new government building construction projects.

 

The number of housing permits approved last year was 440,000, down 25.0 percent from 2012. This is 8.5 percent lower than the ten-year average housing permit numbers of 481,000. As for total area permitted for construction last year, the figure shrank 7.3 percent to 127.07 million square meters. Meanwhile, the number of unsold houses was 61,091 as of the end of December last year, the lowest level since May 2006 when the comparable figure was 58,505.