Due to Easing of Reconstruction Regulations... Seoul Apartment Sales Supply-Demand Index Rises for 2 Consecutive Weeks

Apartment buildings in the Seoul area (Photo by Yonhap News)

[Asia Economy Reporter Ryu Tae-min] Following the presidential election, expectations for the easing of real estate regulations have increased, leading to a slight rise in buying demand in the apartment sales market.

According to the Korea Real Estate Board on the 19th, the Seoul Apartment Sales Supply-Demand Index for the second week of March (as of the 14th) recorded 87.5, up 0.5 points (p) from the previous week (87.0). The supply-demand index is quantified on a scale from 0 to 200 based on surveys of real estate agencies conducted by the Real Estate Board, reflecting the balance between demand and supply. If the index is below the baseline of 100, it means that the number of homeowners wanting to sell their homes exceeds the number of buyers.

The Seoul Apartment Sales Supply-Demand Index has remained below the baseline for 18 consecutive weeks since November 15 of last year. Due to loan regulations, interest rate hikes, and perceptions of peak housing prices, a cautious market sentiment has deepened, resulting in a buyer's market where sellers outnumber buyers. The index hit its lowest point on February 28 and has shown an upward trend for the past two weeks. This is analyzed as reflecting growing expectations for the easing of real estate regulations following the presidential election.

By region, the supply-demand index for the southeastern area, including Gangnam, Seocho, Songpa, and Gangdong districts, rose significantly from 85.7 last week to 86.5 this week. The southwestern area (Yangcheon, Gangseo, Guro, Yeongdeungpo, Dongjak, Gwanak districts) increased from 89.7 to 90.1 during the same period. The northeastern area, which includes Seongdong, Gwangjin, Nowon, Dobong, and Gangbuk districts, changed from 95.9 to 86.5, while the downtown area comprising Jongno, Yongsan, and Jung districts rose slightly from 85.7 to 85.9. The northwestern area, including Eunpyeong, Mapo, and Seodaemun districts, also increased from 86.5 to 86.8 compared to last week.

Gyeonggi Province saw a slight increase from 91.1 to 91.2, whereas Incheon decreased from 92.9 to 91.8. In the provinces, buying demand increased in Busan (94.6), Ulsan (89.1), Jeonbuk (103.5), Jeonnam (93.7), and Gyeongnam (100.0), pushing the regional index up by 0.1 points to 95.2 compared to the previous week. Nationwide, the index rose slightly from 92.7 last week to 92.8.

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