Property prices are slipping nationally. This is due to the steep increase in fascination prices this 12 months and the unfold of the perception of superior residence costs. Not only in Daegu, which experienced from big-scale unsold housing, but also in the metropolitan area, property selling prices are gradually falling.
True estate experts forecast that it will be tricky to stop the downward development in dwelling prices by the stop of the calendar year. This is because the Bank of Korea’s base charge hike is predicted to continue and there is no celebration that will modify the notion of close end users that housing charges might slide more.
In individual, as the governing administration is due to announce a large-scale housing offer evaluate on the 16th, there is a basic perception that ‘let’s wait a very little longer’.
The householders who suffer the most are without doubt the people of Sejong. According to the Korea True Estate Agency, Sejong (-6.08%) is the only location in the nation where the cumulative weekly condominium rate transform for about 20 months from January last 12 months to the next 7 days of August this year was negative (-). Sejong confirmed a drop in condominium price ranges of -.68% for a calendar year from January to December past calendar year. It is down 5.4% so much this 12 months. This signifies that house price ranges are falling speedier than very last year. Genuine estate authorities say that the cumulative decrease is extremely probably to raise in the second 50 % of this yr.
Although information of the recent drop in dwelling charges has been listened to from all above the country, few areas other than Sejong have returned all the increase in household charges previous year. Even Daegu, the place the acquiring pattern has fallen sharply, rose 8.5% previous year, which is a cumulative drop of 4.14% this calendar year.
Doram 15 Danji Hill Condition (84㎡) in Dodam-dong, Sejong was offered for 650 million won in early August this 12 months. Very last April by itself, it was in the late 700 million assortment, and at the finish of past yr, it was traded in the mid 800 million range. In mid-January previous yr, the transaction was created for 963 million gained. In just a yr and a 50 percent, 313 million gained fell. This condominium was traded for 650 million gained in June 2020. Sejong apartment rates have long gone back again to two decades in the past.
Apartments that have returned to the amount of two many years back are not the only Doram 15 Danji Hillstates in Sejong. In the circumstance of Gaon 4 Intricate e-Pyunhan Sesang Prugio (exceptional space 84㎡) in Dajeong-dong, Sejong, the revenue deal for 670 million won was signed in the middle of very last thirty day period. At the end of 2020, the best price tag for an condominium is 1.12 billion gained. Given that there was a situation where this condominium was offered for 670 million won in February 2020, it was lowered to the selling price of the property two many years in the past.
As a final result, Sejong landlords and genuine estate brokers are having difficulties. A representative of a actual estate company in Sejong reported, “Purchase tax has entirely disappeared, but we’re trapped in a randomly overheated spot.
Serious estate gurus predict that the craze of returning the raise from the surge will carry on for now. A regular case in point is that residence costs in Uiwang, Dongtan, and Gwanggyo, which had been strong in recent years due to various developments these kinds of as the Metropolitan Express Railway (GTX), have fallen this calendar year.
Even amid serious estate industry experts, there are various opinions on this phenomenon. The impression that “the bubble is falling from the area exactly where the good news is mirrored also much in property charges” and the feeling that “the existing state of the current market cost is irregular mainly because there is no transaction at all and a modest selection of unexpected emergency product sales is abnormal”.
By Kim Eun-jung, personnel reporter kej@hankyung.com
