The proportion of people who want to sell apartments in Seoul has increased more than last week.
According to the Korea Real Estate Agency, the Seoul apartment sales and supply index this week recorded 98.6, falling below the baseline of 100 for two consecutive weeks following last week’s (99.6).
If the supply-demand index is below 100, there are more ‘sell people’ than ‘buyers’, and it seems that buying sentiment has contracted further as the recent strong loan regulations and interest rate hikes from the financial authorities and the imposition of property taxes this week have been added.
By region, the southeast area (Gangnam, Seocho, Songpa, and Gangdong-gu) with 4 Gangnam districts dropped from 99.5 to 98.2 last week, and the southwest area (Yangcheon, Gangseo, Guro, Yeongdeungpo, Dongjak, and Gwanak-gu) fell from 99.7 to 98.2, respectively.
In addition, the northeast region, which includes eight districts including Seongdong, Gwangjin, Nowon, Dobong, and Gangbuk, declined slightly from 99.4 last week to 99.3 this week.
The northwestern region (Eunpyeong, Seodaemun, Mapo-gu) recorded the lowest in Seoul at 97.4, below the baseline for the fourth straight week.
Experts predicted that buying sentiment would further contract for the time being as the interest burden of so-called ‘young’ (collecting souls) and ‘debt investment’ (investing with loans) demand increased due to the Bank of Korea’s increase in the base rate.