A densely packed apartment area seen from Namsan in Seoul. Reporter Seong Dong-hoon
As apartment transactions in Seoul decreased significantly due to lending regulations, the Seoul apartment actual transaction price index turned downward for the first time this year.
According to the actual transaction price index for apartment complexes announced by the Korea Real Estate Board on the 17th, the actual transaction price index for apartments in Seoul decreased by 0.01% in September. The Seoul apartment actual transaction price index turned upward after December last year (-1.19%), then showed a large upward trend in June (1.63%) and July (2.17%) of this year, but fell for the first time in nine months.
The actual transaction price index is an index of the actual transaction price compared to the previous transaction price. However, if transaction volume is low or abnormal transactions are included, accuracy may decrease.
The actual transaction price index in September fell more sharply in areas with a higher concentration of apartments priced under 900 million won, which are directly affected by lending regulations. The northwest region (Eunpyeong, Seodaemun, Mapo) fell 0.90%, with the biggest drop in Seoul. The northeastern region (Nowon, Dobong, Gangbuk) also fell by 0.42%.
On the other hand, the southeastern region (Gangnam, Seocho, Songpa, Gangdong-gu), where high-priced apartments are concentrated, continued its upward trend with an increase of 0.86%. The southwestern region (Gangseo, Yangcheon, Yeongdeungpo, Dongjak-gu, etc.) where there are reconstruction issues and the urban area (Jongno, Jung-gu, Yongsan-gu) also rose by 0.3% and 0.1%, respectively.
It is analyzed that the main cause of the decline in the actual transaction price index is the implementation of the second-stage stress DSR (Debt Service Ratio) since last September and the strengthening of real estate financial regulations, including restrictions on loans for homeowners.
The aftermath of lending regulations also affected transaction volume. According to the Seoul Real Estate Information Plaza, the volume of apartment transactions in Seoul increased to 9,181 cases (based on contract date) in July, but decreased to 3,089 cases in September, when loan regulations began in earnest. The trading volume in October was 3,254 as of the 17th, a slight increase from September, but the atmosphere was not very active.
Gyeonggi-do’s actual transaction price index in September went from rising (0.99%) to remaining flat (0.00%), while Incheon’s rose 0.04%, with the entire metropolitan area index remaining flat (0.00%).
The local apartment actual transaction price index rose 0.2%. Busan (-0.38%) and Daejeon (-0.1%) fell, but Daegu (0.14%), which had been on a downward trend, turned upward for the first time in 11 months, and the increase appears to have increased in Gwangju (0.65%). The national apartment actual transaction price index rose 0.09%. However, the increase slowed significantly compared to August (0.67%).
