Sudden Appearance of 'Urgent Sale' Properties in the Capital Area... Will the Fortress-Like Asking Prices Break?

Urgent Sales Priced Millions Below Market Value Increase
Trend of More Complexes with Falling Actual Transaction Prices
As Buying Demand Weakens and Transactions Decrease, Asking Prices Fluctuate

"Even though I listed it at the lowest price, it still doesn't sell. There are hardly any buyers coming to see the house."

Urgent sale listings with significantly reduced prices are appearing one after another in apartment complexes on the outskirts of the metropolitan area. This is interpreted as an increasing number of homeowners lowering prices to sell as buying demand sharply freezes due to perceptions of peak housing prices and the government's tightening of loan regulations, leading to a decrease in transactions.

This is in stark contrast to this past summer when housing prices continued to soar despite the transaction cliff. Analysts suggest that if this trend continues, asking price declines will become more pronounced, especially in peripheral areas.

According to the real estate industry on the 1st, urgent sale listings with lowered asking prices have recently increased in some apartment complexes on the outskirts of Seoul and in Gyeonggi Province. Although overall asking prices are still set higher than previous actual transaction prices, urgent sale listings are appearing mainly from sellers who are desperate to dispose of their homes as deals fail due to reduced buying demand.

The head of A Real Estate Agency in Sangye-dong, Nowon-gu, Seoul (hereafter referred to as the agent) said, "Listings lowered by several tens of millions of won are coming out, but even those are not attracting many buyers."

The frontline brokerage industry explains that inquiries from buyers have completely stopped as transactions ceased due to buyers' reduced financing ability caused by the government's loan regulations.

Many homeowners are worried about selling due to the decreased buying demand even online. Mr. B, who owns a 20-pyeong (approximately 66 sqm) apartment in Hwaseong-si, Gyeonggi Province, said, "I listed the property 60 million won below the asking price, but I haven't received a single call. I need money next year, so I have to sell quickly, and I'm anxious."

It is also known that urgent sale listings avoiding online exposure due to residents' complaints are increasing. One homeowner said, "I wanted to list the property about 20 million won below the market price because I was in a hurry to sell, but they said that could trigger a price drop competition within the complex. So, I plan to advertise at the market price but tell the real estate agents that price adjustments are possible."

Given this situation, it is not difficult to find complexes where actual transaction prices are falling. In Geumcheon-gu, Seoul, Complex C with a 114㎡ (exclusive area) unit was traded for 738 million won on the 10th of last month but sold for 600 million won on the 26th of the same month, dropping more than 100 million won in about two weeks. In Gwangjin-gu, Complex D's 59㎡ unit had a previous highest price of 1.28 billion won but was traded for 855 million won in early last month. The current lowest asking prices in both complexes have dropped more than 30 million won compared to market prices.

The price drops are even larger in Gyeonggi Province. In Seongnam-si, Complex E's 84㎡ unit fell from 919 million won to 600 million won, and in Guri-si, Complex F's 116㎡ unit dropped from 1.33 billion won to 1 billion won, each decreasing by more than 300 million won.

According to the Seoul Real Estate Information Plaza, the number of apartment sales transactions in Seoul in September was 2,688, falling into the 2,000 range for the first time this year. Sales transactions in October are also at 1,095 as of this date, less than half of September's volume. As urgent sale listings accumulate and lead to overall price declines, the industry is paying attention to this 'turning point.'

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