Cold Wind Blows on Regional Real Estate... More Properties Up for Sale

[Asia Economy Reporter Kim Min-young] A cold wind is blowing through the local real estate market. In Daegu, unsold apartments are increasing, and in Sejong, apartment prices have fallen for 21 consecutive weeks. The deterioration of buying sentiment due to strengthened loan regulations and interest rate hikes is being observed to lead to actual price declines.

According to the Korea Real Estate Board on the 18th, based on the nationwide weekly apartment price trend survey as of the 13th, Sejong's decline widened from -0.33% the previous week to -0.47%, marking 21 consecutive weeks of decline. This is the largest drop since December 2012.

Last month, Sejong's comprehensive housing sale price also sharply declined by -0.67%. Since recording -0.05% in June, Sejong has been in a downward trend for five consecutive months. Sejong City had driven local housing price increases last year, with apartment prices rising 43.6% amid the administrative capital issue. However, this year, the upward trend in housing prices has stopped due to factors such as the increase in new supply from Sejong Eoullim Famille Central (1,210 households).

Signs of a downturn are also detected in Daegu. Since shifting to a downward trend from the 15th of last month, apartment prices fell in all areas except Suseong-gu, which remained flat. In November, Daegu's housing prices turned downward for the first time in a year and six months, and the number of unsold apartments reached 1,933 units as of the end of October. Three complexes?Harrington Place Gamsam Phase 3, Duryu Jungheung S-Class Centum Foret, and Dongdaegu Prugio Briscent?all failed to meet the first-priority local subscription quota on the 14th.

This is believed to be due to the weakening of buying demand caused by interest rate hikes and strengthened household loan management policies. According to the Real Estate Board, the local apartment sales-to-supply index this week recorded 98.6, falling below 100. This is the first time in one year and two months since October 19 last year (99.3) that the index dropped below 100. When this index falls below the baseline of 100, it means that the number of homeowners willing to sell exceeds the number of buyers.

Even in the metropolitan area, not just local regions, some areas have seen apartment prices decline. Due to weakened buying demand, Dongducheon (-0.03%) and Hwaseong City (-0.02%) turned to a downward trend. For example, a 75㎡ unit in Songnae Jugong Complex 1 in Dongducheon was traded on the 30th of last month at 260 million KRW, about 13% lower than the previous transaction price of 300 million KRW. In Hwaseong City, a 96㎡ unit in Dongtan Station Central Yemi Ji, which was traded at 1.17 billion KRW in October, changed hands on the 8th of this month at 1 billion KRW, a 14% decrease.

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