On the pace of deregulation and control movements… Re-frozen apartment buying sentiment

The sentiment for apartment purchases in Seoul, which had been recovering before and after the presidential election, has froze. Analysts say that the financial cost burden is increasing due to the Bank of Korea’s increase in the base rate, and the Presidential Takeover Committee has a negative impact on the buying sentiment as the level of deregulation on real estate is fluctuating.

According to the Korea Real Estate Agency on the 29th, the Seoul apartment sales and demand index this week was 90.5, down from 91.4 last week. When Seoul is divided into five districts, the Northwest Apartment Sales and Supply Index, which includes Eunpyeong, Seodaemun, and Mapo-gu, was 87.0, showing the largest decline by 2.1 points from 89.1 last week.

The Apartment Sales Supply and Demand Index is an index of the supply and demand situation by the Korea Real Estate Agency by conducting a survey of authorized real estate agencies and analyzing the number of items for sale on the Internet. The lower the purchase/demand index is below the baseline (100), the more people want to sell the house than those who want to buy it.

The Seoul apartment sales and demand index has risen for seven consecutive weeks since the end of February this year until last week. This is due to the spread of expectations that the new government, which will be launched next month, will greatly ease regulations related to reconstruction, redevelopment, and taxation.

However, in recent years, the market atmosphere has changed subtly. As house prices fluctuate in anticipation of easing of various real estate regulations, the transition committee is suggesting speed control. Many analyzes say that the decline in the supply and demand index for apartment sales in Seoul this week was also influenced by this situation.

A real estate agent in Gongdeok-dong, Seoul said, “As the possibility of an additional base rate hike by the Bank of Korea and the new government’s move to adjust the pace of deregulation of real estate regulations go hand in hand, the number of consumers who say, ‘Let’s wait and see’ is increasing.”

In addition to Seoul, the supply and demand index for apartment sales in provincial provinces was 95.7 this week, down from last week’s (96.2). As a result, the nationwide apartment sales and demand index also fell from 94.4 last week to 93.6 this week.

By Kim Eun-jung, staff reporter kej@hankyung.com

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