Frozen Buying Sentiment... Apartment Sales Supply-Demand Index Hits Another All-Time Low

A red light is on at a traffic signal near an apartment in downtown Seoul. (Photo by Asia Economy DB)

[Asia Economy Reporter Ryu Tae-min] Seoul apartment prices have recorded the largest decline for five consecutive weeks, causing buying sentiment to freeze solidly.

According to the Korea Real Estate Board on the 9th, this week's Seoul apartment sales supply-demand index fell to 65.7, down from 66.7 last week. This is the lowest figure in 10 years and 5 months since the Korea Real Estate Board began statistical aggregation in July 2012. The sales supply-demand index being below the baseline of 100 means that there are more people wanting to sell houses than those wanting to buy in the market.

The Seoul apartment supply-demand index has remained below the baseline for a year (55 consecutive weeks) since it recorded 99.6 in the third week of November last year, indicating a seller's market where more people want to sell than buy. As a result of this supply-demand imbalance, the transaction market has also frozen. According to the Seoul Real Estate Information Plaza, the total number of apartment sales transactions in Seoul in October was 555. This is the lowest monthly figure since the actual transaction price survey began in 2006.

Looking at Seoul by region, the index for the northwest area, including Eunpyeong, Mapo, and Seodaemun districts, fell from 62.4 last week to 61.4 this week, marking the lowest among the five major regions of Seoul. The northeast area, including Nowon, Dobong, and Gangbuk districts, slightly declined from 63.9 last week to 63.8 this week. The southwest area, including Yeongdeungpo, Yangcheon, Dongjak, and Gangseo districts, recorded 63.5 this week, down from 66.0 last week. The southeast area, including Gangnam, Seocho, Songpa, and Gangdong districts, also fell from 74.1 last week to 73.5 this week. In contrast, the central area, including Yongsan, Jongno, and Jung districts, slightly rose from 65.8 to 65.9.

The Gyeonggi-do sales supply-demand index dropped from 70.8 last week to 69.2. Incheon fell from 69.6 to 68.5. Accordingly, the overall metropolitan area sales supply-demand index continued its downward trend, recording 68.0 this week, down from 69.4 last week. Simply put, this is the lowest level in 10 years and 5 months since the first week of July 2012, when it was 61.5.

The nationwide apartment sales supply-demand index fell to 73.1 from 74.4 last week, marking a record low. The Real Estate Board analyzed, "Due to concerns about further housing price declines and the burden of interest rate hikes, inquiries from buyers remain sparse," adding, "Intermittent urgent sales transactions are influencing downward adjustments of existing listing prices, resulting in an expanded decline compared to last week."

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