Decreased sales due to high interest rates and commercial cliffs
The owners turn to rents
While the number of listings in Seoul’s apartment market has decreased, the number of rents has increased significantly. As the houses were not sold due to the high interest rates and transaction cliffs, the demand for conversion into cheonsei is analyzed to have increased.
According to the apartment transaction price of a big data real estate firm on 7th, the number of apartments for sale in Seoul on the same day was 62.64, down 3.7% from a month ago (62,518). In the same period, the number of leased assets increased by 14.2% to 66,433 cases.
Among them, the number of jeonse items was 41,945, an increase of 15.1% over the previous month (36,437), and the number of monthly rental items increased by 12.9% from 21,685 to 24,488.
It has been analyzed that some homeowners are turning their sales into jeonse due to the deepening of the commercial cliff in the commercial market.
The buying sentiment of the market is getting smaller and smaller. As interest rates continue to rise, another rate hike is expected this month.
According to the Korea Real Estate Agency, Seoul’s apartment sales and supply index this week was 77.7, down from 78.5 last week. Seoul’s apartment sales and demand index has been down for 22 consecutive weeks since it recorded 91.1 in the first week of May. Put simply, it is the lowest in about three years and four months since the survey in the third week of June 2019 (77.5).
Reporter Lee Song-ryeol at Hankyung.com [email protected]
