Transactions mainly on rush sales in January and February
Songpa and Dongjak-gu rose last week
Seoul apartment transaction volume recorded the highest in 18 months. The deregulation of real estate led to a freeze on interest rates, and the market, which had been strained, seems to be warming up.
According to the Seoul Real Estate Information Plaza on the 16th, the number of apartment sales in March in Seoul was 2,675. This is the highest figure in 18 months since September 2021, when 2,694 cases were recorded. After recording 2,461 cases in February, it exceeded 2,000 cases for two consecutive months.
It is interpreted that the government’s real estate deregulation is having an effect. It is analyzed that demand for transfers has increased as all areas in the country except for Gangnam and Yongsan have been lifted from regulated areas as measures 1 and 3, and regulations on loans and subscriptions have been lifted. In fact, the apartment transaction volume, which fell below the 1,000 level last year, rebounded after bottoming out in October (558 cases). Since then, in January of this year when the restrictions were lifted, the number of cases increased sharply to 1,417 compared to the previous month (835 cases), and momentum continues. A representative of a real estate agency in Songpa-gu said, “In January and February, right after the deregulation, transactions continued mainly on quick sales.”
As the transaction volume increases, there are signs of a rebound in house prices in various parts of the Seoul area. According to the trend of apartment prices in the second week of this month, compiled by the Korea Real Estate Agency, Songpa-gu and Dongjak-gu rose 0.02% and 0.01%, respectively, from the previous week as transactions were conducted mainly in large areas.
With the recent two consecutive freezes in the benchmark interest rate, the interest rate instability in the market seems to be alleviated. Park Won-gap, senior member of real estate at KB Kookmin Bank, said, “It has become a constant rather than a variable in that the interest rate has come within the predictable range, escaping from the fear of high interest rates.” It will take time,” he said.
Hyunjung Seo reporter [email protected]
