Seoul apartment sales fall for 42 consecutive weeks
The decline was -0.21% → -0.16%
Apartment sales prices in Seoul fell for 42 weeks in a row. However, the decline is steadily slowing. As the effects of the deregulation of real estate and the adjustment of loan interest rates were reflected, the apartment transaction volume also showed an upward trend. However, experts believe that it will be difficult for the real estate market to recover in a short period of time as the battle between sellers and buyers intensifies and internal and external uncertainties remain.
According to the Korea Real Estate Agency on the 16th, the Seoul apartment sales price index fell 0.16% in the second week of March. It decreased by 0.05 percentage point from last week (-0.21%). In other words, it has been reducing the decline for five consecutive weeks since the second week of last month.
By district, Gangseo and Geumcheon-gu (-0.37%), Gwangjin-gu (-0.34%), Dobong-gu (-0.29%), Gwanak-gu (-0.27%), Gangbuk-gu (-0.26%), Yeongdeungpo-gu (-0.23%), Seodaemun and Mapo-gu (-0.23%) -0.21%), Jongno/Dongjak-gu (-0.19%), Seongdong/Yangcheon-gu (-0.18%), Eunpyeong-gu (-0.17%), Jungnang-gu (-0.16%), Dongdaemun/Jung-gu (-0.15%), Yongsan/Seongbuk-gu (-0.15%) -0.14%), Guro-gu (-0.13%), Nowon-gu (-0.10%), Gangnam-gu (-0.07%), Gangdong-gu (-0.02%), Seocho-Songpa-gu (-0.01%), all 25 districts showed weakness. Songpa-gu, which turned upward alone last week, also turned negative once more.
In fact, according to the actual transaction disclosure system of the Ministry of Land, Infrastructure and Transport, it was confirmed that the majority of apartments in Seoul that were traded this year have increased in sales compared to last year. As a result of analyzing the highest transaction price of apartments (531 cases) in which there were more than one contract of the same area in the same complex in the first quarter of this year and the fourth quarter of last year, there were 277 cases (52.2%) of increased transactions. There were 224 cases (42.2%) of falling transactions and 30 cases (5.6%) of flat transactions.
By complex, the 84㎡ exclusive area of ’Helio City’ in Garak-dong, Songpa-gu was changed hands for 1.89 billion won on the 23rd of last month. It does not reach the highest price (2.38 billion won) in September 2021, but compared to the annual low price (1.53 billion won), it has risen by 360 million won.
The exclusive area of Godeok Gracium in Godeok-dong, Gangdong-gu, 84㎡, was also sold for 1.495 billion won on the 4th. It is an equilibrium that went down to 1.225 billion won in January, but the asset value has partially returned. As landlords rush to sell their properties, the asking price is also rising.
The nationwide apartment sales price index also fell 0.26%, reducing the decline from last week (-0.34%). Among 176 cities, counties and districts across the country, 171 areas have experienced a decrease in house prices. Incheon (-0.36%→-0.28%), Gyeonggi (-0.49%→-0.35%), Sejong (-0.30%→-0.11%), Gwangju (-0.27%→-0.24%), Busan (-0.46%→ -0.34%) and other major cities showed a similar trend.
The decline in apartment jeonse prices nationwide also eased. As the nation (-0.46% → -0.41%) reduced the drop, both Seoul (-0.58% → -0.50%) and the metropolitan area (-0.58% → -0.50%) and regional areas (-0.35% → -0.32%) Reduced downgrade level.
An official from the Korea Real Estate Agency said, “Even in a situation where transactions focused on urgent sales continue, sales are being exhausted around major complexes with high preference, but the gap between the desired purchase and sale price is still not narrowed.” Amidst the backlog, demand for relocation is occurring, centering on areas with favorable settlement conditions.”
Sales market ‘sparkling warmth’…Exceeded 2,000 apartment transactions in Seoul
According to the Seoul Real Estate Information Plaza, the number of apartment transactions in Seoul last month was 2073. It is the highest in 16 months since October 2021 (2198 cases). This is an increase of regarding 2.5 times compared to December last year (836 cases), just before the real estate regulatory shackles were lifted.
It is analyzed that the government’s real estate deregulation policy has revived buying sentiment. Previously, the Ministry of Land, Transport and Maritime Affairs announced the 2/7 Special Act to support maintenance projects following the 1/3 measures to lift all areas of Seoul except for Gangnam, Songpa, Seocho, and Yongsan-gu from regulated areas.
The actual trading index also rebounded. In January, the actual transaction price index for apartments in Seoul increased by 0.81% compared to the previous month. This is the first rise in 7 months since June last year (0.23%). The northeast region, where the Nodogang River (Nowon, Dobong, Gangbuk-gu), which had a steep decline, jumped 1.69%. The northwest (1.61%) and southeast (1.61%) rose to the same figure. The downtown area (-1.34%) and the southwestern area (-0.20%) fell.
An official from the real estate industry said, “It is still premature to discuss the atmosphere of a complete rebound,” but “it is true that expectations for revitalization of the housing market are hovering to some extent as the possibility of a soft landing in real estate is increasing.”
