As the ‘supply and demand balance’ of the Seoul apartment market is broken, the pressure to increase housing prices is intensifying. In particular, as single-home buyers and non-homeowners are entering the market in large numbers, there is an atmosphere that is encouraging additional price increases.
For this reason, the government is speeding up the supply of alternative apartments such as villas and officetels, including the enactment of the Reconstruction and Redevelopment Promotion Act.
According to the Korea Real Estate Board on the 18th, the average price of apartments in Seoul this week rose 0.32% compared to the previous week, the largest increase in 5 years and 11 months since the second week of September 2018 (0.45%).
The main reason why apartment prices in Seoul are rising like this is because demand in the market exceeds supply.
This week, the Seoul apartment sales demand index rose 1.1 points (p) from the previous week (103.7) to 104.8.
The supply and demand index is an index that measures the ratio of supply and demand in the apartment sales market. The higher the value is compared to the baseline (100), the more people are trying to buy a house in the market than are trying to sell it.
The Seoul apartment sales supply and demand index has been on the rise for 27 consecutive weeks since the second week of February.
Another factor cited as a factor in the price increase is the worsening phenomenon of so-called ‘smart single-family homes’ due to real demand in a market where multiple homeowners are excluded.
Lee Chang-seop, CEO of Woodae Bread Real Estate, said, “Recently, the average sale price of apartments in areas with high demand in Seoul is recovering rapidly,” and explained, “Representative areas include Yongsan, Gangnam, Yeongdeungpo, Songpa, and Seongdong.”
For this reason, the government is pouring out measures to speed up redevelopment and reconstruction projects and normalize the non-apartment supply market.
In particular, the plan is to promote the supply of non-apartments, which is relatively faster than apartments, to disperse some of the real demand that has been driven into the apartment market. Representative measures include: △ purchase of 110,000 newly built villas + α, △ relaxation of acquisition tax for small-scale construction companies, and △ New: Village project (50,000 households).
Market analysts say that while government policies may calm some real demand buying, they will not be enough to turn around the direction of housing prices.
Yoon Ji-hae, head of the R114 Real Estate Research Team, said, “The government appears to be trying to persuade real demand through the 8.8 supply measure,” and added, “If the follow-up system is implemented in earnest after September, the concentration of new apartments in Seoul is expected to ease somewhat.”
However, he predicted, “As of June (7,470 cases), the number of apartment transactions in Seoul recorded the highest in four years, and the number of properties on the market is rapidly decreasing, so it is expected that the price recovery trend to the past peak price level will continue throughout the second half of the year.”
(Sejong=News 1)
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2024-08-19 14:11:57