Seoul Apartment Buying Sentiment Falls for 2 Consecutive Weeks... Jeonse Demand Rises
Reflecting Fatigue from Strong Price Rebound
"However, It Is Premature to Discuss a Downturn" Interpretation
Seoul apartment buying sentiment declined for two consecutive weeks, except in the Gangnam area. This is interpreted as the market taking a 'breather' after the rapid depletion of urgent sale listings and a sharp rise in asking prices.
According to the Korea Real Estate Board on the 8th, the Seoul apartment sales supply and demand index this week was 89.0, down 0.2 points from the previous week (89.2). After hitting a low of 66.3 in the fourth week of February, the index had been rising for 25 consecutive weeks before falling for two weeks in a row.
The sales supply and demand index quantifies the balance between demand and supply, with values below the baseline (100) indicating that there are more sellers than buyers in the market.
By region, the Northeast area, which includes Nowon, Dobong, and Gangbuk districts ('No·Do·Gang'), saw the largest drop from 87.8 to 87.3.
Next, the Northwest area, including Mapo, Seodaemun, and Eunpyeong districts, fell 0.4 points from 88.3 to 87.9. The Southwest area, comprising Gangseo, Yeongdeungpo, and Yangcheon districts, decreased slightly from 88.7 to 88.6.
The Central area maintained the same level as last week at 92.2, while the Southeast area rose 0.3 points from 91.5 to 91.8. Only the regions including the three Gangnam districts and Yongsan district, which are regulated areas, maintained an index in the 90s.
On the same day, the real estate platform Zigbang announced that the August Seoul apartment price change rate was 1.029%, showing a slowdown compared to the previous month (1.314%).
This is interpreted as reflecting fatigue from the strong price rebound that began in the second quarter following the government's deregulation earlier this year.
After the depletion of urgent sale listings, asking prices rose sharply, but as the gap between sellers' and buyers' desired prices did not narrow, buyers turned cautious, and price increases continued mainly in preferred complexes within regulated areas.
As a result, apartment listings are accumulating. According to the real estate big data company Asil, as of this day, the number of Seoul apartment sale listings was 73,200, a 9.5% increase from a month ago (66,837).
Seoul apartment listings surpassed 70,000 at the end of last month. This is the first time since Asil began compiling data in September 2020.
However, some explanations suggest that since the upward trend is still maintained, it is premature to discuss a shift to a downward trend.
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Demand for jeonse (long-term lease) increased in all areas. The Seoul apartment jeonse supply and demand index rose 0.8 points from 92.6 to 93.4 during the same period.
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