Chungbuk flat transaction ‘pop’? 16 consecutive weeks of ‘decline’ accelerating

Amidst the nationwide real estate market crunch, the real estate market in North Chungcheong Province was also found to be accelerating its decline.

According to the Korea Real Estate Agency on the 26th, third week of this month, the sales price index for apartments in the Chungbuk area was ‘106’ (standard 100 = 4th week of June 2021), down 0.23% compared to’ the previous week.

It has fallen for 16 consecutive weeks since the first week of August (108.1), recording the biggest weekly drop.

Cheongju remains at the 103.6 level, down 0.32%.

In the case of Cheongwon-gu, it plunged 0.41%, showing 101.7, close to the standard value of 100 in June last year.

The number of flat transactions in the province continued to fall from 5790 in April to 3013 in May, 3793 in June, 2179 in July, 3401 in August, and 1736 in September.

It is analyzed that the negative factors such as the increase in the interest rate for housing mortgage loans, the transaction cliff, and the reduction in supply have acted together.

During this period, charter transactions also follow, with a cold wind blowing. Chungbuk and Cheongju fell by 0.22% and 0.28%, respectively, to 106.9 and 104.4%.

The Bank of Korea’s base rate was raised to 2.25% on July 13, 2.50% on August 25, 3.00% on October 12, and 3.25% on November 24. This is an increase of 2.0 percentage points from 1.25% earlier this year.

A real estate expert said, “As of the 25th, the various housing mortgage interest rates of the four major banks (Kookmin, Shinhan, Hana, Woori) increased from 5.31 to 7.17% and are expected to exceed 8% within the year.” A crunch in the real estate market, like a sudden drop in transactions, seems inevitable.”