2023-12-01 00:55:51
Banpo One Bailey 84㎡ sold for 600 million won in two months
As inventory piles up, the selling price is also falling.
Supply drought amidst vicious backlog of unsold units
Growing concerns over long-term rise in apartment prices
▲ As the apartment authorities began tightening housing mortgage loans, which are the core of household debt, the upward trend in apartment prices across the country turned to a decline for the first time in 23 weeks. Seoul apartments also stopped rising after 28 weeks. However, housing permits, construction starts, and completions across the country showed a ‘triple decrease’ compared to last year, raising concerns about long-term housing price instability due to supply shortage.
According to the ‘National Weekly Apartment Price Trends for the Fourth Week of November (as of the 27th)’ announced by the Korea Real Estate Board on the 30th, the nationwide apartment sales price fell 0.01% from the previous week. The upward trend that had continued since the third week of June broke down after 23 weeks. While Seoul and Gyeonggi remained flat at 0.00%, Incheon fell 0.07%, and the metropolitan area (-0.01%) also turned downward for the first time in 26 weeks.
Among Seoul’s 25 autonomous districts, the number of declining areas increased from only five last week to 11. The decline continues mainly in the outskirts of Seoul, including Nowon-gu (-0.04%), Gangbuk-gu (-0.03%), Gwanak-gu (-0.03%), Guro-gu (-0.02%), and Dobong-gu (-0.01%). Gangnam-gu, an area where housing prices are relatively falling, showed a downward trend for two consecutive weeks, with a larger decline this week (-0.04%) than last week (-0.02%), and Seocho-gu also fell 0.02%, turning into a downward trend. Areas where transactions were down, such as Dongjak-gu (-0.02%), Jongno-gu (-0.01%), Seodaemun-gu (-0.02%), and Mapo-gu (-0.01%), were also unable to avoid the downward trend.
In fact, in the case of Raemian One Bailey’s exclusive area of 84㎡ in Banpo-dong, Seocho-gu, Seoul, the price reached a record high of 4.5 billion won last September, but has fallen by 650 million won as it was traded at 3.85 billion won this month. The 107㎡ exclusive use of Sinbanpo 2 in Jamwon-dong was also traded for 3.43 billion won last September, but changed hands for 3.39 billion won in the most recent transaction on the 10th. In the case of 50㎡ exclusively for Seongsan City in Seongsan-dong, Mapo-gu, it was traded for 948 million won last October, but in November it was sold for 900 to 910 million won.
Regarding the Seoul apartment sales market, the Real Estate Institute said, “There are inquiries to purchase mainly for quick-sale properties, but as expectations for price increases are lowered, transactions are decreasing and the wait-and-see attitude is deepening.” He added, “As properties for sale are piling up and the desired selling price is falling, the trend is turning to a flat trend.” “It’s done,” he said.
However, supply indicators continue to decline. Last September, the government invested 1.6 trillion won to revitalize the shrunken housing supply market, but as of last October, the number of permits was found to have halved compared to the previous month. Looking at the cumulative total from January to October of this year, it is pointed out that housing permits, construction starts, and completions across the country have tripled compared to last year, indicating that concerns about supply shortages remain.
According to the ‘October Housing Statistics’ released by the Ministry of Land, Infrastructure and Transport on this day, the number of housing permits nationwide last month was 18,047 households, a decrease of 58.1% in one month. Housing permits fell to the level of 5,000 households in August and rebounded to 43,114 households in September, but the number plummeted again in October. As of October this year, the cumulative number of permits was 273,918 households, a 36.0% decrease from the same period last year.
As of last October, housing starts were 15,733 households, up 31.4% from the previous month, and housing completions were 19,543 households, up 58.1% from the previous month. However, when looking at the cumulative total from January to October this year, there were 141,595 households in construction and 270,960 households in completion, a decrease of 57.2% and 18.5%, respectively, compared to the same period last year.
The number of unsold homes nationwide has been decreasing for eight consecutive months, but the number of unsold homes after completion, which are classified as malicious unsold homes because they were not sold even after construction was completed, was 10,224 households, an increase of 7.5% compared to the previous month. This is the first time in two years and eight months that the number of unsold unsold units has exceeded 10,000.
Yeo Kyeong-hee, a senior researcher at Real Estate R114, said, “From the perspective of implementation and construction companies, they will enter the supply market only when business feasibility is guaranteed, but since demand is not boosting, supply cannot keep up,” and added, “Problems such as the risk of unsold units, fund crunch, and high interest rates have been resolved.” “If this does not happen, the continued triple decline could encourage long-term housing price instability,” he predicted.
Reporters Soo-kyung Yoon and Seong-gu Ok
1701393599
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