The Epicenter of 'Panic Buying,' Nowon, Sees Housing Prices Stall... Quick Sales Increase Due to Loan Regulations

Decline in Buying Sentiment... Smallest Increase in 18 Months
Urgent Sale with 100 Million Won Price Drop in One Month

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hye-min] The slowdown in housing prices in the Nowon-gu area of Seoul, known as the epicenter of 'panic buying,' is becoming evident. The rise in housing prices has almost stopped, and in some areas, cases of price declines are occurring consecutively. Due to loan regulations causing transactions to come to a halt, urgent sale listings are also accumulating.

According to the monthly housing price trend by KB Live Real Estate on the 30th, the average sale price per square meter of apartments in Nowon-gu this month was 11,247,000 KRW, marking an increase of only 0.3% (34,000 KRW) compared to the previous month. This is the lowest rate of increase since May last year, which was 0.24%.

Apartment sale prices in Nowon-gu rose by 4.74% last year based on data from the Korea Real Estate Board, the largest increase among the 25 autonomous districts in Seoul. This significantly exceeded the Seoul average of 2.67%. The increase rate in the first half of this year was 5.08%, showing an even steeper upward trend. The sharp rise in housing prices was largely influenced by the 2030 generation rushing to purchase mid-to-low priced apartments in Nowon-gu.

The soaring housing prices in Nowon-gu have declined due to the direct impact of loan regulations. A representative from real estate agency A in the area said, "Most buyers are non-homeowners with actual demand, but with loans blocked, the buying momentum has clearly decreased."

As buying interest disappears, transactions have sharply decreased and listings are accumulating. According to the Seoul Real Estate Information Plaza, the number of apartment sales in Nowon-gu dropped from 222 cases in September to 150 cases in October. The number of reported transactions this month has only reached 23 as of today. According to apartment actual transaction data from a real estate big data company, as of today, the total number of apartment sale listings in Nowon-gu is 3,738, an increase of 4.8% compared to a month ago. Urgent sale listings are also appearing consecutively. For example, the asking price for a 58㎡ (exclusive area) unit in Sanggye Jugong Complex 2, initially listed at 850 million KRW, recently dropped by 100 million KRW. Similarly, a 50㎡ unit in Sanggye Jugong Complex 6 has been adjusted from the initial 800 million KRW to the current 720 million KRW.

A representative from real estate agency B in the area said, "There are also listings with significantly lowered prices, mainly from sellers who have become urgent."

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