Home Business House prices in the metropolitan area, wait-and-see for ‘strengthening loan regulations and imminent interest rate hike’

House prices in the metropolitan area, wait-and-see for ‘strengthening loan regulations and imminent interest rate hike’

by news dir

▲ ⓒKorea Real Estate Agency

While the government is tightening lending regulations, the housing market in the metropolitan area continues to slow down as interest rates are expected to rise.

According to the Korea Real Estate Agency on the 21st, the rate of change of the apartment sale price index in the metropolitan area in the third week of November was 0.20%. It decreased by 0.02%p from the previous week, which was 0.22%, and continued to slow down. Seoul’s trading price index decreased by 0.01%p from 0.14% the previous week to 0.13% this week.

The rate of change in the apartment sale price index in Seoul has been on the decline since it recorded a year-round high of 0.22% on August 23rd. The Korea Real Estate Agency analyzes that this is due to a decrease in trading activity amid a decrease in buying sentiment.

The rate of change in apartment sales indices in Gyeonggi and Incheon is also slowing. In Gyeonggi Province, the increase decreased from 0.27% last week to 0.24% this week, by 0.03%p, and in Incheon from 0.33% to 0.29%.

In the real estate R114 statistics, a private indicator, the rate of change in apartment sales prices in Seoul, Gyeonggi, and Incheon stood at 0.08%, which remained stagnant for four weeks in a row. Seoul’s increase rate was 0.09%, showing an increase of less than 0.1% for seven consecutive weeks.

Amid the slowing rate of house price growth, the Seoul apartment sales market turned into a buyer’s dominance for the first time in seven months. According to the Korea Real Estate Agency, as of the 15th, the Seoul apartment sales and demand index recorded 99.6, down 1.3p from the previous week when it recorded 100.9.

On a scale of 0 to 200, the closer to 0, the more sellers, and the closer to 200, the more buyers. It is the first time in over seven months that the Seoul apartment sales and demand index has fallen below 100 since it recorded 96.1 on April 5.

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