Zigbang "Increase in Apartments with Price Drops After 2·4 Measures"

It is too early to say this is the precursor to a long-term decline

[Asia Economy Reporter Onyu Lim] An analysis has emerged showing an increase in the number of apartments in Seoul with falling prices following the announcement of the February 4 housing supply plan.

According to Zigbang on the 29th, the proportion of housing types (units) in Seoul with price declines was 23.1% up to February 4 this year, but increased to 33.3% from the announcement of the February 4 plan until the 23rd.

The district with the highest proportion of housing types with price declines was Yongsan-gu (53.3%), followed by Gangnam-gu (43.3%), Gangseo-gu (42.6%), Seodaemun-gu (41.7%), Gangbuk-gu (41.4%), and Dongdaemun-gu (40.9%).

Ham Young-jin, head of Zigbang Big Data Lab, analyzed, "The February 4 supply plan, combined with existing demand suppression and strengthened property tax policies for multi-homeowners, has recently stabilized the Seoul apartment sales market," adding, "It is judged that the strong signal for market stabilization has provided psychological stability to market participants."

However, there is an analysis that it is premature to consider the current market stability as the beginning of a full-scale price decline or a long-term downward trend.

Lab head Ham said, "Expectations for deregulation of redevelopment and reconstruction remain, and the low interest rates and abundant cash liquidity, which were the main causes of previous price increases, are also potential risk factors that could cause market instability again," adding, "Whether the Seoul apartment sales market is in a major downward phase or a temporary price stabilization phase is expected to be determined by the market trend in the first half of this year."

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