Kim Hyun-mi "Panic Buying Is Regrettable"
Panic Buying 2030 "All-In Buying Was the Right Choice" Relief
Last month, the average sale price of small apartments in Seoul increased by 141.92 million KRW (22.7%) compared to one year ago.
[Asia Economy Reporter Kim Bong-ju] Since the inauguration of the Moon Jae-in administration, key figures in the ruling party have emphasized curbing speculation and stabilizing housing prices, advising people "not to buy houses." However, it has been revealed that those who ignored these warnings actually saw their assets increase.
According to the monthly housing price trend survey conducted by KB Real Estate on the 7th, the average sale price of small apartments (exclusive area of 60㎡ or less) in Seoul last month was 767.89 million won. This is a 141.92 million won (22.7%) surge compared to the average of 625.97 million won in March last year, within just one year.
With less than a year remaining in President Moon Jae-in's term, only those who ignored the government's advice and bought houses by "Yeongkkeul" (borrowing to the limit) have made significant gains.
Nevertheless, Minister of Land, Infrastructure and Transport Byun Chang-heum stated in February, "Now is not the time to buy houses recklessly." Lee Ho-seung, Chief of the Presidential Office for Policy, also said on the 1st of this month, "The housing market has shown considerable stability since mid-February."
However, in reality, voices from the field say that apartment prices are still rising in high-demand areas such as Seoul and Gyeonggi, and they do not feel the housing price stabilization.
According to the 'Analysis of Seoul Apartment Price Increase' released last year by the Citizens' Coalition for Economic Justice (CCEJ), apartment prices in Seoul have surged by a staggering 52% since the Moon Jae-in administration began.
Then Minister of Land, Infrastructure and Transport Kim Hyun-mi also expressed regret in the National Assembly Land Committee meeting in August last year regarding the young generation's "panic buying" through Yeongkkeul, predicting a decline in housing prices.
However, looking at the actual trend of Seoul apartment prices, it turns out that the Yeongkkeul buyers were right. Those who engaged in 'panic buying' last year are presumed to have actually enjoyed significant asset growth.
According to KB Real Estate's monthly time-series statistics, the average sale price of apartments in Seoul rose from 905.33 million won in July last year to 1,099.93 million won last month, an increase of 149.6 million won (15.7%) over eight months.
A representative of a real estate agency in Seoul said, "There were many people in their 20s and 30s who bought apartments in July last year," adding, "Although they were anxious about the possibility of a price drop at the time, the young buyers now feel relieved, saying that 'Yeongkkeul buying was the right choice.'"
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