February Local Housing Buyer Sentiment Far Exceeds Seoul Metropolitan Area

February Regional Net Buyer Index/Graph = KB Real Estate Live On

[Asia Economy Reporter Hwang Seoyul] It has been revealed that housing purchase sentiment in local areas is performing better compared to the Seoul metropolitan area. This is interpreted as a balloon effect caused by real estate regulations in the metropolitan area.

According to an analysis of the ‘KB Real Estate Live On’ statistical data by real estate research firm Realtoday on the 4th, as of February, the purchase dominance index in local cities excluding the metropolitan area and major metropolitan cities (hereafter referred to as other local areas) recorded 61.5, higher than the national average of 50.1. In particular, the metropolitan area scored 48.8 and the five major metropolitan cities scored 40.4, showing a difference of more than 20 points in some cases, indicating that other local areas are performing well in the real estate market.

Among the 17 cities and provinces nationwide, other local areas mostly occupied high rankings. The purchase dominance index rankings from 1st to 6th place were all taken by other local areas. Gangwon-do was the highest at 93.8, followed by ▲Chungbuk (81.7) ▲Chungnam (72.5) ▲Jeju (69.6) ▲Jeonbuk (64.5) ▲Gyeongnam (63.7).

Other local areas also showed higher apartment price growth rates compared to other regions. The apartment price growth rate in other local areas at the end of last year recorded 5.22%. Meanwhile, prices in the metropolitan area and the five major metropolitan cities rose by 2.90% and 3.16% respectively during the same period.

A Realtoday official said, "The metropolitan area and major metropolitan cities are experiencing a temporary pause in the real estate market due to fatigue from rapid housing price increases over a short period," adding, "Most other local areas enjoy the balloon effect as housing prices are low and real estate regulations are relatively less strict."