"No Inquiries at All"... Eunpyeong and Mapo Purchase Sentiment Index Falls Below 60

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

[Asia Economy Reporter Ryu Tae-min] Seoul apartment prices have recorded the largest decline for six consecutive weeks, causing buyer sentiment to fall to its lowest level in 10 years and 5 months. In particular, the sales supply-demand index in the northwestern area, which includes Eunpyeong, Mapo, and Seodaemun districts, has fallen below the 60 mark, creating a frozen atmosphere for buying activity.

According to the Korea Real Estate Board on the 18th, the sales supply-demand index for Seoul apartments in the second week of December was 64.8, down from 65.7 the previous week. This is the lowest figure in 10 years and 5 months since the Korea Real Estate Board began compiling statistics 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.

The Seoul apartment supply-demand index fell below the baseline at 99.6 in the third week of November last year, and for a year (57 consecutive weeks), the market has been buyer-dominant with more sellers than buyers. The imbalance in supply and demand has also frozen the transaction market.

According to the Seoul Real Estate Information Plaza, the number of apartment sales transactions in Seoul in October was 555. This is the lowest monthly figure since the actual transaction survey began in 2006.

In particular, the decline was prominent in the northwestern area, which includes Eunpyeong, Mapo, and Seodaemun districts. The index for the northwestern area recorded 59.5 this week, the lowest among the five major regions of Seoul. This is the first time this year that the index fell below 60 in any region, and it is the first time in 3 years and 8 months since April 2019 that the northwestern area recorded a figure in the 50s.

As buyer sentiment freezes, listings in the northwestern area are also accumulating. According to statistics from Apartment Real Transaction Data (Asil), a real estate big data company, apartment listings in Mapo-gu increased by 21.7% (369 units) from 1,699 in January this year to 2,068 as of the 16th. In fact, the cumulative number of sales transactions this year for Mapo Raemian Prugio, considered the "flagship apartment" in Ahyeon-dong, Mapo-gu, was 15, which is only 22.3% of last year's 67 transactions. During the same period, apartment listings also increased in Eunpyeong-gu (from 1,893 to 2,334) and Seodaemun (from 1,529 to 1,796).

Yoon Soo-min, a real estate specialist at NH Nonghyup Bank, explained, "In the northwestern area, apartment supply is high but demand inflow is relatively low. Unlike Gangnam, where investment demand is concentrated, or areas like No, Do, Gang with solid actual demand, this area has traditionally been a representative region with weak buying power."

Meanwhile, other regions in Seoul also continued to see declines in the sales supply-demand index. The northeastern area, including Nowon, Dobong, and Gangbuk districts, slightly dropped from 63.8 last week to 63.4 this week; the southwestern area, including Yeongdeungpo, Yangcheon, Dongjak, and Gangseo districts, fell from 63.5 to 62.4; and the southeastern area, including Gangnam, Seocho, Songpa, and Gangdong districts, sharply declined from 73.5 to 71.9. In contrast, the central area, including Yongsan, Jongno, and Jung districts, slightly rose from 65.9 to 66.6.

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