Amid the real estate transaction cliff, apartment prices across the country have been declining for the 34th consecutive week. At the same time, it recorded the largest drop in history. As the government announced additional deregulation in January next year, attention is focused on the currently regulated areas such as Seoul, Gwacheon, Seongnam, Gwangmyeong, and Hanam.
According to a survey by the Korea Real Estate Agency on the 29th, apartment prices nationwide fell 0.76% this week, expanding the drop from last week (-0.73%). This is the 34th consecutive week of decline since the second week of May this year, and at the same time, the largest decline ever recorded for 15 consecutive weeks since May 2012, when the Real Estate Agency started market price research.
According to data, Seoul apartment prices also fell 0.74% this week, increasing the drop from last week (-0.72%). It is the 31st consecutive week of decline since the last week of May this year and the largest drop ever for the 8th consecutive week.
Nowon, Dobong, and Seongbuk-gu fell more than 1% weekly, continuing weakness. Among them, Eunpyeong-gu fell 1.01% this week, entering the 1% range. The price of apartments in Seocho-gu also showed a noticeable drop from -0.27% last week to -0.55% this week.
On the other hand, the price of apartments in some areas of Seoul is decreasing. Songpa-gu recorded -0.49% this week from -0.75% last week, reducing the drop for the second consecutive week.
In Songpa-gu, as the number of urgently sold apartments in the Jamsil area has recently decreased, complexes with slightly higher actual transaction prices are emerging. Gangdong-gu also slowed down from -0.64% last week to -0.57% this week.
However, except for this region, there is a downward trend. Apartment prices in Gyeonggi (-0.99%) and Incheon (-1.18%) also showed a greater decline than last week (-0.96%, -1.12%). As a result of this, the entire metropolitan area also fell 0.93%, an increase from last week (-0.91%), continuing the largest decline ever.
Gwacheon (-1.41%), Seongnam Sujeong-gu (-1.87%), Bundang-gu (-0.84%), Gwangmyeong (-1.69%), and Hanam-si (-1.58%), which remain regulated areas along with Seoul, all fell from last week. As the trend of decline is steep, it is expected that there is a high possibility that it will be included in the list of areas to be lifted from regulations to be announced next month.
The government has announced further deregulation in January. Deputy Prime Minister and Minister of Strategy and Finance Choo Kyung-ho said on the 25th, “We plan to announce some deregulation, such as speculation and adjustment areas, in January next year.” plan,” he said.
Experts suggest that rapid deregulation is urgently needed. Kim Jung-sik, an economics professor at Yonsei University, said in a phone call with the Women’s Economic Daily, “The construction industry accounts for a large portion of the domestic market and has a large effect in relation to other industries. He emphasized, “It is time for bold policies such as eliminating speculative areas and reducing taxes.”