Seoul Buyer's Dominance Index Surpasses 100 Again... "Let's Buy a House" Amid Jeonse Crisis

KB Real Estate LiveOn Housing Market Trends Announcement

Seoul Purchase Advantage Index Exceeds 100 After 3 Months
Indicates More Buyers Than Sellers for Apartments
Buying Demand Recovers as Jeonse Prices Rise Despite Jeonse Measures

[Asia Economy Reporter Moon Jiwon] Seoul's apartment buyer dominance index has surpassed 100 again after about three months. This means that there are more buyers than sellers. The buying sentiment, which had stalled due to the government's successive regulations, is gradually recovering amid the ongoing jeonse (long-term lease) crisis.

According to the weekly KB Housing Market Trend report by KB Kookmin Bank's Real Estate Live On, as of the 30th, Seoul's apartment buyer dominance index recorded 100.4. This is the first time in 12 weeks that it has risen above 100 since dropping below 100 on September 7 (96.2).

This index is calculated based on surveys conducted by KB Kookmin Bank targeting frontline real estate agencies, where a value above 100 indicates relatively more buyers, and below 100 indicates relatively more sellers.

Seoul's buyer dominance index peaked at 154.5 on July 6 this year and then continued to decline. This was due to the government's announcements of the July 10 measures, August 4 measures, the plan to realize official property prices, and strong regulations such as the three lease laws, which weakened the buying sentiment for Seoul apartments.

However, recently, the jeonse crisis caused by low interest rates and the three lease laws has significantly spread, and the government's jeonse measures have fallen short of expectations, leading to a revival in buying demand. KB Kookmin Bank explained, "Buying inquiries are gradually increasing, and selling inquiries are slowing down again, showing a recovery in buying sentiment."

Seoul apartment sale prices rose by 0.27% this week, slightly narrowing the increase compared to the previous week (0.31%). Gangbuk-gu (0.67%), Gangseo-gu (0.47%), Gangnam-gu (0.41%), Dobong-gu (0.38%), and Jung-gu (0.36%) showed relatively high growth rates.

Seoul's jeonse price increase rate also recorded 0.45%, down from 0.61% last week. Gangnam-gu (0.98%), Geumcheon-gu (0.83%), Songpa-gu (0.68%), Gwangjin-gu (0.66%), and Dobong-gu (0.63%) had high growth rates, and there were no areas with price declines.

(Photo by Yonhap News)

'Balloon Effect' Continues... Busan Gangseo-gu, Daegu Dalseo-gu Leap

The real estate market in local areas still shows unstable signs.

In Busan, Gangseo-gu, which avoided regulations, recorded the highest increase rate at 3.25%.

The government designated Busan's Haeundae, Suyeong, Dongnae, Nam, and Yeonje districts, Daegu's Suseong-gu, and parts of Gimpo City in Gyeonggi Province (excluding some towns and townships) as adjusted areas on the 19th of last month. Since then, buying demand has shifted to nearby non-regulated areas, driving up house prices.

In fact, this week, Ulsan Nam-gu and Daegu Dalseo-gu showed high growth rates of over 1%. Among the five major metropolitan cities, Ulsan (1.17%), Busan (0.82%), Daegu (0.66%), Gwangju (0.22%), and Daejeon (0.21%) rose in that order.

Since Gimpo (0.99%) was designated as an adjusted area, buying demand has concentrated in Paju, Gyeonggi Province (1.34%), where apartment sale prices have also risen significantly.

This content was produced with the assistance of AI translation services.