On the First Day of Deregulation... Flood of Listings in Gyeonggi-do, 5,000 Properties Disappear

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On the 14th, the number of properties available in the Seoul metropolitan area, most of which were released from real estate regulation zones such as adjusted target areas, sharply decreased at the largest rate this year. This appears to reflect movements expecting some recovery in buying demand due to the easing of regulations.

According to Asil, a real estate big data platform, as of the 14th, the total number of apartment listings (sales and monthly rent) in Gyeonggi Province was recorded at 208,629, down by 5,010 (-2.34%) from the previous day (213,639). Although there have been several instances this year where the number of apartment listings in Gyeonggi increased by more than 5,000 on a daily basis, this is the first time a decrease has been observed.

Since the interest rate hikes began in the second half of last year, real estate listings have been accumulating nationwide, with Gyeonggi Province showing an explosive increase among them. The number of listings in Gyeonggi rose from around 87,000 in August last year to over 210,000 recently, more than doubling. This figure even surpasses the number before the crackdown on false listings on internet real estate platforms (August 2020). During the period when false listings were rampant, the number of listings never exceeded 200,000.

Amid an unprecedented transaction freeze and continuous accumulation of listings, the government announced a relaxation of regulation zones on the 10th. Gyeonggi Province, where nine areas (Suwon, Anyang, Ansan Danwon, Guri, Gunpo, Uiwang, Yongin Suji·Giheung, Dongtan 2) were released from the speculative overheated district designation, was expected to be most affected. These areas had both speculative overheated district and adjusted target area regulations lifted simultaneously. Additionally, 22 areas in Gyeonggi, including Goyang, Namyangju, Gimpo, Uiwang, Ansan, and Gwanggyo district, were released from the adjusted target area designation.

The easing of regulation zones took effect at midnight on the 14th, upon the completion of publication in the official gazette. Regulations related to the entire process of buying and selling homes, including loans, taxation, subscription, and transaction (resale restrictions), were significantly relaxed. On that day, the number of listings in the areas released from regulation zones sharply decreased. Uiwang City recorded -3.6%, and Ilsanseo-gu in Goyang City showed -3.4%, with most areas showing changes in the -2% to -3% range. The head of A Real Estate Agency in Juyeop-dong, Ilsanseo-gu, said, "After the announcement of the lifting of regulation zones, related information spread through communities and KakaoTalk chat rooms. Some homeowners expecting a recovery in buying demand are adjusting their asking prices, which had been set at the lowest, while some are even withdrawing their listings entirely."

There is also anticipation for other regulatory easing measures announced by the government. From the 1st of next month, the Loan-to-Value (LTV) regulation for non-homeowners will be unified at 50%, and mortgage loans for apartments exceeding 1.5 billion KRW in speculative overheated districts will be permitted. Correspondingly, mortgage loans for the purpose of returning rental deposits on apartments exceeding 1.5 billion KRW will be allowed, and the guarantee limit for rental deposit return loans will be expanded from 100 million KRW to 200 million KRW. A plan to normalize the registered rental housing business within the year will also be prepared. Currently, the registered rental housing system has seen benefits reduced since 2020, allowing long-term (10 years) registration only for detached and multi-family houses excluding apartments. This situation raises expectations for rental-purpose purchases by multi-homeowners who had been constrained by regulations.

However, while the decrease in listings may be temporary, the dominant view remains that a full-fledged rebound in the real estate market is unlikely. Ko Jun-seok, CEO of J.Edu Investment Advisory, said, "Although some easing of regulations has expanded purchasing power mainly among actual demanders, the key variable in the real estate market remains interest rates," adding, "Until interest rates are lowered and stronger regulatory easing measures are introduced, it is highly likely that the current market trend will continue."

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