Seoul Apartment Buying Sentiment Declines for 7 Consecutive Weeks... 수도권 Also Sees 5-Week Downtrend

Apartment view around Seoul / Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Ryu Taemin] The Seoul apartment sales supply and demand index has fallen for seven consecutive weeks. As the financial market slows down due to interest rate hikes and other factors, housing purchase sentiment is also weakening.

According to the Korea Real Estate Board on the 25th, the Seoul apartment sales supply and demand index for the third week of June (as of the 20th) was 88.1, down 0.7 points from last week (88.8). This marks a seven-week consecutive decline since the temporary exclusion of the capital gains tax surcharge on multi-homeowners was implemented on May 10. The sales supply and demand index generally indicates that the lower it is below the baseline (100), the more sellers there are in the market compared to buyers.

By region, the sales supply and demand index fell in all five regions of Seoul last week. The northwest area, including Eunpyeong and Mapo districts, recorded 82.0, the lowest in Seoul. The northeast area, which includes 'No-Do-Gang' (Nowon, Dobong, Gangbuk), saw the largest drop of 1.0 point, falling from 84.3 to 83.3.

The central area, including Yongsan and Jongno districts, decreased from 88.4 to 87.8, while the southwest area, including Yeongdeungpo and Yangcheon districts, dropped from 91.7 to 91.4 last week. The southeast area, which includes the Gangnam 3 districts (Gangnam, Seocho, Songpa), also declined from 94.5 to 93.9.

On a metropolitan area basis, the downward trend has continued for five consecutive weeks. The metropolitan area sales supply and demand index fell significantly by 2.0 points from 92.3 in the first week of May to 90.3 last week. Gyeonggi Province, which had a slight rebound last week (91.6→91.1), showed a decline again. Incheon also saw a decrease in buying demand, dropping from 92.3 last week to 91.9 this week.

The Seoul apartment jeonse (long-term lease) supply and demand index fell by 0.4 points from 94.7 last week to 94.3. The metropolitan area also decreased from 95.3 last week to 95.1.