Price Survey by Korea Real Estate Board After July 10 Measures
Seoul Jeonse Prices Rise Further as Listings Decrease Due to Regulations
Some Areas in Gyeonggi Including Regulated Zones See Sharp Decline in Increase Rate
[Asia Economy Reporter Moon Jiwon] Since the July 10 real estate measures, the rise in Seoul apartment jeonse prices has accelerated. This is interpreted as being due to the continuous decrease in jeonse listings caused by increased holding tax burdens and strengthened actual residence requirements.
According to the weekly apartment price trend for the second week of July announced by the Korea Real Estate Board on the 16th, Seoul apartment jeonse prices rose by 0.13% as of the 13th. The jeonse price increase rates showed an upward trend: 0.06% on June 8, 0.08% on June 29, and 0.13% this month.
The Korea Real Estate Board analyzed, "Amid a shortage of listings due to low-interest liquidity, the two-year actual residence (capital gains tax) exemption condition, and subscription waiting demand, the upward trend continued mainly in newly planned supply areas and newly built apartments near subway stations."
North of the Han River, Mapo-gu (0.19%) saw a significant rise in jeonse prices mainly in subway station areas such as Gongdeok, Singongdeok, and Sangam-dong. Seongdong-gu (0.15%) rose around Wangsimni New Town and older buildings in Haengdang-dong, and Seodaemun-gu (0.14%) increased mainly in Gajaeul New Town, which has favorable living conditions.
South of the Han River, the rise was clear in the Gangnam 4 districts. Gangdong-gu (0.30%) rose mainly in Godeok and Gangil-dong, where demand for new buildings is steady, and Songpa-gu (0.26%) saw price increases centered on Jamsil-dong reconstruction complexes and Munjeong and Songpa-dong.
Gangnam-gu (0.24%) rose in Daechi and Yeoksam-dong, which have good educational environments, and Seocho-gu (0.21%) continued its upward trend mainly in Jamwon-dong, Banpo, and Seocho-dong, influenced by redevelopment projects.
Seoul apartment sale prices rose by 0.09% compared to 0.11% the previous week, showing a slight decrease in the rate of increase. This is interpreted as buyer sentiment dispersing due to the significantly increased holding tax burden on multi-homeowners and short-term holders following the June 17 and July 10 measures.
In the Gangnam area, Songpa-gu (0.13%) rose mainly in Sincheon, Bangi, and Munjeong-dong, Gangnam-gu (0.11%) in Gaepo, Dogok, and Irwon-dong, and Seocho-gu (0.09%) centered on new buildings in Banpo-dong and older buildings in Jamwon-dong. However, due to fatigue from the previous rapid rise, a wait-and-see stance was observed, reducing the rate of increase.
In Gyeonggi Province, the rate of increase also decreased due to regulatory effects. Areas designated as regulated zones under the June 17 measures, such as Gwangju (0.36→0.17%), Ansan (0.10→0.06%), and Pyeongtaek City (0.24→0.03%), saw a significant reduction in the rate of increase.
On the other hand, Gwangmyeong City (0.54%), Hanam City (0.51%), Guri City (0.47%), and Gimpo City (0.38%) were found to have steadily rising prices.
Meanwhile, this survey was conducted from the 7th to the 13th. The Korea Real Estate Board explained, "The impact of restrictions on jeonse loan guarantees and the July 10 measures was partially reflected."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
