Real Estate Policy 'Knocked Down'... Apartment Transactions Surge Again

Apartment Transactions in the Seoul Metropolitan Area Surge Again Last Month
Analysis of 'Panic Buying' Revival Amid Worsening Jeonse Crisis

[Asia Economy Reporter Chunhee Lee] Apartment transaction volumes in the Seoul metropolitan area, including Seoul and Gyeonggi, are showing a sharp increase again. Although it seemed to enter a stabilization phase after August, the impact of the two lease laws?the right to request contract renewal and the rent ceiling system?has intensified the jeonse (key money deposit) shortage, leading to an analysis that buyers' 'panic buying' is spreading once more.

According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system on the 14th, the total number of apartment sales transactions registered in Seoul last month is 4,452. This figure surpasses the 4,320 transactions recorded in October.

Considering that the reporting deadline for November transactions is the end of this month, industry observers suggest that the final transaction volume for last month could exceed 5,000 and possibly reach around 6,000.

Seoul's apartment sales volume recorded 11,106 transactions in June, surpassing 10,000 for the first time in five months since January, and surged to 16,002 in July, but showed a sharp decline after August.

After dropping to 6,880 transactions in August, about half compared to the previous month, the volume further decreased to 4,795 in September and 4,320 in October, suggesting a cooling in buying demand. The government had analyzed that "panic buying has significantly subsided due to government real estate measures such as the June 17 and July 10 policies."

However, with transaction volumes turning upward again last month, criticism is emerging in the market that the effects of the government's measures, which focused on supply expansion and regulations on multiple homeowners, have already dissipated.

An industry insider diagnosed, "After the implementation of the two lease laws, jeonse listings sharply decreased while prices surged, causing tenants to feel uneasy and return to buying."

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