[Asia Economy Reporter Ryu Taemin] The sale prices of national standard apartment complexes, which first surpassed 2 billion KRW in non-Gangnam areas, continue to decline. Some complexes have already seen prices fall below 2 billion KRW, raising concerns that the 2 billion KRW threshold may collapse primarily in non-Gangnam areas.
According to the Ministry of Land, Infrastructure and Transport's actual transaction information system on the 15th, an 84.9㎡ (exclusive area) unit in Acro River Heim, Heukseok-dong, Dongjak-gu, Seoul, changed hands for 1.98 billion KRW on the 25th of last month. This is the first time since last year that the sale price of this unit size has dropped below 2 billion KRW. At that time, this complex was the first national standard apartment to exceed 2 billion KRW, leading to a surge of complexes surpassing 2 billion KRW in non-Gangnam areas such as Mapo and Jongno-gu.
In other areas, the 2 billion KRW price point for national standard units is also wavering. For example, the pre-sale rights for an 84㎡ unit in Mapo-gu's Yeomni-dong 'Mapo Prestige Xi' were traded at 2 billion KRW. The asking price for an 84㎡ unit in Jongno-gu's Pyeong-dong 'Gyeonghuigung Xi 3 Complex' has also dropped to the high 1.9 billion KRW range.
The contraction in the apartment sales market is attributed to consecutive base interest rate hikes and the government's comprehensive tightening of loan regulations. Additionally, as the outlook for the apartment sales market darkens, the number of urgent sale listings appears to be increasing.
In fact, Seoul apartment prices have continued to decline for 11 consecutive weeks, marking the largest drop in 3 years and 4 months. According to the Korea Real Estate Board, as of the 8th, Seoul apartment prices fell by 0.08% compared to the previous week, with the decline widening. This is the largest drop since the first week of April 2019.
Meanwhile, the Seoul apartment sales supply-demand index fell by 0.2 points to 84.4 from 84.6 last week. This is also the lowest figure in 3 years and 1 month since recording 83.2 in the first week of July 2019. The Seoul apartment sales supply-demand index has been declining for 14 consecutive weeks since May 2nd (91.1).
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