House prices are generally weak in both metropolitan areas and provinces. As homeowners who bought houses at a high point become sensitive, it is common to find cases of ‘getting angry’ with Amon people. An official from a real estate agency said, “There are many cases where homeowners who bought houses at a high point get anxious when the price drops.”
According to the real estate industry on the 14th, house prices appear to be falling nationwide. Looking at the weekly apartment price trends announced by the Korea Real Estate Agency, as of the first week (5th) of this month, the nationwide house price fell 0.17%. It is the biggest drop since May 7, 2012, when the Real Estate Agency started compiling the statistics. National house prices have been falling for the 18th week in a row.
House prices in Seoul also fell 0.15 percent, the biggest fall in nine years and one month. This is the biggest drop since August 5, 2013 (-0.15%). As the decline continued in Incheon and Gyeonggi Province, house prices in the metropolitan area fell 0.21%. It is the highest in 10 years since September 10, 2012 (-0.22%). Provincial house prices also fell 0.13%, a further decline.
“I survived and finally bought a house…the house price is falling”
As house prices fell, homeowners who bought houses at high peaks also rose. House prices are the so-called ‘sangtu people’, which are estimated to be held at a high point. Most of them have bought a house within one year. I finally bought a house following holding on to it, and the recent house price is falling to a level similar to or lower than the purchase price. So, they are outraged by the drop in house prices in the online real estate community. Moreover, it is not uncommon to find that the items for sale at a lower price than the market price are regarded as objects of anger.
According to the real transaction price disclosure system of the Ministry of Land, Infrastructure and Transport, in early last month, the 84 m² dedicated to ‘Godeok Arteon’ in Sangil-dong, Gangdong-gu was changed to 1.48 billion won. It was 160 million won lower than the previous transaction 1.64 billion won (July) and 500 million won lower than this year’s highest price of 1.98 billion won (April).
As soon as this transaction was made, a person presumed to be a local resident posted an article on an online real estate community saying, “Who is the person who sold it at a low price of 1.48 billion won?” The author expressed his anger at the unspecified majority, saying, “Are you destroying the value of virtue by slashing all your neighbors’ property like this? You have irresponsibly harmed others.”
The 59m2 dedicated to ‘Magok 13 Danji Hill State Master’ in Magok-dong, Gangseo-gu was also traded at 980 million won last month, which is regarding 400 million won lower than this year’s highest price of 1.36 billion won. After this transaction, the local community also complained regarding the seller saying, “My assets were 1.3 billion won, but they made it to 1 billion won in an instant. Thank you very much.”
“The reason I bought a house in Sangtu is because of the previous owner”
There have even been cases where they demanded ‘proof of contents’ saying that the reason for holding the house price ‘traditional’ was because of the previous landlord. It is an absurd content that Mr. A, a landlord who lives in Gyeonggi-do, received a ‘certificate of contents’.
In order to enter his house and live in his house, Mr. A refused the right to renew the jeonse contract requested by Mr. B and requested an eviction. The refusal was given six months before the end of the lease, giving the tenant plenty of time to find a home. Without any problems, Mr. A enters his house and Mr. B moves in.
However, recently, a ‘proof of contents’ requesting compensation for damages is flying in front of Mr. A. The sender was the former tenant Mr. B. Mr. B said, “I was able to live in this house for 4 years (existing lease contract 2 years + the right to renew the jeonse contract 2 years), but I only lived for 2 years due to the landlord’s refusal. In the end, I bought the apartment. The current price of the apartment (which Mr. B bought and lives in) has fallen, which is 40 million won lower than when he bought it, so we have to compensate for it.”
Because of Mr. A, Mr. B had no choice but to leave the rented house and buy a house at a high point, and since the price has gone down, the logic is that Mr. A, the former owner of the house, is responsible for this. It is not that Mr. A asked Mr. B to buy a house. What’s even more absurd is that the real estate agent who brokered when Mr. B bought the house also participated in the sending of the ‘certificate of content’. When Mr. B asked the broker responsible for the fall in house prices, it is presumed that he passed this responsibility on to Mr. A, the former owner of the house.
It is not as high as Mr. A, but for the time being, it seems that large and small frictions over house prices will continue in the market. This is because there are many prospects for house prices to be sluggish. A representative of a real estate agent in Seoul said, “Last year, landlords who succeeded in buying a house with ‘Young-chul’ (short for ‘to attract souls’) are particularly sensitive to house prices. There are also occasional homeowners who complain of anxiety,” he said.
Reporter Lee Song-ryeol at Hankyung.com [email protected]
