No Buying Inquiries Even After Deregulation... Seoul Buying Preference Index at 20.9

[Asia Economy Reporter Kim Hye-min] Although real estate regulations have been lifted in most areas of Seoul, the sales market has not been revitalized. The buyer dominance index remains at the 20 level, indicating a continued transaction stagnation where seller inquiries far exceed buyer interest.

According to KB Real Estate on the 22nd, last week Seoul's buyer dominance index recorded 20.9. It rose by 0.4 points compared to the previous week but still reflects a stagnant state. The buyer dominance index ranges from 0 to 200; a value above 100 means "more buyers," while below 100 means "more sellers." Seoul's buyer dominance index was higher than Gyeonggi (16.3) and Incheon (12.6), but sellers still outnumbered buyers.

With transactions failing to activate, housing prices continue to decline. Seoul apartment sale prices fell by 0.54% compared to the previous week. This is a 0.16-point increase in the decline from the previous week's -0.38%. By region, Seodaemun-gu (-1.77%), Seongdong-gu (-1.52%), Gangseo-gu (-0.82%), and Gangdong-gu (-0.78%) experienced the largest drops. Jeonse prices also fell by 0.79% compared to the previous week.

Gyeonggi Province recorded a 0.49% decline, and Incheon saw a 0.62% drop compared to the previous week. In Gyeonggi, Suwon Yeongtong-gu (-0.89%) had the largest decrease, followed by Ansan Danwon-gu (-0.88%) and Gwangmyeong-si (-0.83%). In Incheon, Yeonsu-gu fell by 1.35% compared to the previous week.

According to Real Estate R114, Seoul apartment sale prices fell by 0.06% compared to the previous week. However, the decline narrowed by 0.03 percentage points. Reconstruction apartments dropped by 0.05%, and general apartments fell by 0.06% compared to the previous week.

Real Estate R114 stated, "Since the deregulation of restricted areas including Seoul, localized buyer inquiries have increased, especially for urgent sales and small apartments, but the price gap between buyers and sellers is significantly wide, preventing actual contracts from being made." They added, "Considering the high-interest-rate environment and the backlog of listings over the past year, it is expected to take considerable time for transactions to clear the inventory."

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