[Asia Economy Reporter Ryu Tae-min] The gap between the desired prices of buyers and sellers in the real estate market is widening. Since the announcement of the 1st and 3rd policy measures, the weekly fluctuation rate of apartment prices in Seoul has been oscillating, showing signs of confusion.
According to Real Estate R114 on the 23rd, apartment prices in Seoul fell by 0.06% compared to the previous week. The decline narrowed by 0.03 percentage points (p) from one week earlier (-0.09%).
The Seoul apartment prices compiled by Real Estate R114 shrank from -0.11% on the 16th of last month to -0.04% on the 6th of this month. The price drop narrowed for three consecutive weeks but expanded again to -0.09% on the 13th, more than doubling. However, the decline narrowed again after just one week.
According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system, an 82㎡ (exclusive area) unit in Jamsil Jugong Complex 5 in Jamsil-dong, Songpa-gu, was traded for 2.446 billion KRW on the 14th. This is 170 million KRW higher than the previous transaction price of 2.276 billion KRW on the 5th. An 84㎡ unit in Parkrio, Sincheon-dong, changed hands for 1.65 billion KRW on the 5th, which is 70 million KRW lower than the 1.72 billion KRW transaction at the end of last month.
Yoon Ji-hae, chief researcher at Real Estate R114, explained, "After the deregulation of Seoul's regulated areas, local purchase inquiries increased mainly for urgent sales or small apartments, but the price gap between buyers and sellers has widened significantly. Buyers try to buy at a lower price, and sellers try to sell at a higher price, so actual contracts are not being made."
A price list is posted at a real estate agency in Apgujeong-dong, Gangnam-gu, Seoul. [Photo by Yonhap News]
The price gap between buyers and sellers is also evident in the change in the number of apartment listings in Seoul. According to Apartment Real Transaction Prices, as of the 19th, the number of apartment listings in Seoul was 52,276, an increase of 2,502 units (5%) since the government's policy announcement on the 3rd. The supply of listings is increasing faster than the buying demand.
Statistics from the Korea Real Estate Board show a narrowing decline. As of the 16th, Seoul apartment prices fell by 0.35% compared to the previous week, a 0.1 percentage point decrease in the decline from one week earlier (-0.45%), marking a slowdown in the downward trend for three consecutive weeks. The sales demand-supply index also rose slightly from 64.1 on the 2nd to 65.8 on the 16th.
A Korea Real Estate Board official explained, "The price decline tends to slow down due to intermittent urgent sales transactions and expectations of market price recovery."
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