Hong Nam-ki "Downward Stabilization"... Market Responds "Well..."

"Demand for 'Smart Hanchae' Remains Strong... Possibility of House Price Increase After Presidential Election"

Although the government has repeatedly emphasized that the housing market has passed a turning point and entered a trend of downward stabilization, there is skepticism in the market about whether the 'stabilization trend' will continue as the government expects. The reason is that housing prices, which have already risen as much as they can, are only taking a breather due to loan regulations, and demand still exceeds supply for well-located homes. Furthermore, the government stated that an 'excessive level' of housing will be supplied to the market by 2030, but there are opinions that this cannot be seen as a substantial volume to stabilize the market, given that the move-in time is still far off.

On the 23rd, Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, presided over the '39th Real Estate Market Inspection Ministerial Meeting' and said, "The real estate sales market has shown a clear and rapidly spreading downward stabilization trend, with Seoul declining for 4 consecutive weeks, the metropolitan area for 3 weeks, and the Gangnam 4 districts for 2 weeks this year." Regarding housing supply expansion, he said, "This year, 460,000 households, more than 30% above the average year, are scheduled for sale, and the number of permits issued last year was 550,000 households, about 20% more than the previous year," adding that the number of households supplied by 2030 will reach a level that raises concerns about oversupply. At the 36th ministerial meeting, the first meeting this year, Hong also said, "Housing supply is expected to reach a level that some parts of the market worry about as oversupply."

However, skepticism about the downward stabilization of housing prices is also considerable in the market. In particular, there are forecasts that prices may rise in the short term depending on the policies proposed by presidential candidates.

Kwon Dae-jung, professor of real estate at Myongji University, pointed out, "Although the supply volume is the largest compared to previous governments, the actual move-in time is still far away, so it is difficult to see it as a substantial volume that will stabilize the current market."

Despite the recent transaction freeze, an 84㎡ unit at 'Acro River Park' in Seocho-gu, Seoul, was sold for 4.66 billion KRW on the 21st of last month, surpassing the previous highest price of 4.5 billion KRW by 160 million KRW. In the first-priority subscription for Centreville Asterium Yeongdeungpo, which closed the previous day, 11,385 people applied for 57 units, recording a competition rate of 200 to 1.

Kwon Il, head of the research team at Real Estate Info, diagnosed, "Until the full-scale real estate policies are announced after the presidential election, transactions with both rising and falling prices will continue depending on location and development prospects," adding, "More people are expected to believe that house prices will rise after the election, and until then, the phenomenon of listings being withheld is likely to continue."

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