by Kim Minyoung
Published 05 Dec.2021 14:04(KST)
[Asia Economy Reporter Kim Min-young] Following Seoul, it has been revealed that in Gyeonggi Province, there are more people willing to sell apartments than those willing to buy. This appears to be due to a combination of loan regulations, interest rate hikes, fatigue over rapid housing price increases, and the presidential election, which have all contributed to a weakened apartment buying sentiment in the metropolitan area.
According to the Korea Real Estate Board on the 5th, the apartment sales supply-demand index in the metropolitan area recorded 99.3 this week, down 0.07 points from last week’s 100.0, falling below 100. This is the first time since May 25 last year (99.7) that the metropolitan apartment sales supply-demand index has dropped below 100. An index below 100 means there are more sellers than buyers. Since the beginning of this year, apartment prices in Gyeonggi Province have risen 20.91% compared to October last year, exceeding the increase in Seoul apartment prices (7.12%).
The apartment sales supply-demand index in Seoul also showed a selling preference for the third consecutive week at 98.0. Among the five districts in Seoul, Yongsan, Jongno, and Jung-gu, which were the only areas above the baseline last week, recorded 99.0 this week, indicating that in all five districts of Seoul, there are now more people wanting to sell apartments than those wanting to buy. By district, the Northeast area, including Nowon, Dobong, and Gangbuk-gu, recorded 98.6; the Southwest area, including Yangcheon and Gangseo-gu, 97.7; the Southeast area, including the Gangnam 3 districts, 97.5; and the Northwest area, including Seodaemun, Eunpyeong, and Mapo-gu, 97.7.
Transaction volumes are also continuing to decline. According to the Ministry of Land, Infrastructure and Transport, the nationwide housing sales transaction volume in October was a total of 75,290 cases, down 18.8% compared to the same period last year (92,769 cases). This is the lowest monthly transaction volume recorded this year. The metropolitan area, including Seoul, recorded 31,982 cases, a 23.6% decrease from the same period last year (41,884 cases).
The jeonse (long-term lease) market is also experiencing continued transaction stagnation. The metropolitan area apartment jeonse supply-demand index was 100.2 this week, down 1.1 points from last week. The Seoul apartment jeonse supply-demand index recorded the baseline of 100.0, while Gyeonggi recorded 99.7.
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