Jamsil Jugong 5 Complex Trades for 2.446 Billion Won This Month
Seoul Apartment Price Decline Also Narrows
Experts Say "Too Early to Judge Rebound... Trading Volume Is Key"
[Asia Economy Reporter Kim Min-young] Following the 1·3 measures, cases of sales being concluded at prices 100 million to 200 million KRW higher in some areas of Seoul have been increasing, raising expectations for a recovery in housing prices. However, the market points out that the 'transaction volume' needs to rise to last year's average level for the rebound trend to continue.
According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system on the 27th, an 82㎡ unit in Jamsil Jugong Complex 5 in Songpa-gu, Seoul, was traded for 2.446 billion KRW on the 14th. This complex, which recorded a peak price of 3.2788 billion KRW, had fallen to 2.2435 billion KRW in early last month but rose by about 200 million KRW within a month. Currently, the asking prices for the same size units are also formed higher than previous transactions, ranging from 2.3 billion to 2.4 billion KRW. Transaction volume, which bottomed out with 0 cases in August, 1 in September, 5 in October, and 2 in November last year, recorded 13 cases in December and 4 cases in January this year. Due to the rise in both transaction volume and asking prices, some are predicting the possibility of a housing price rebound.
The decline in Seoul apartment prices is also showing signs of easing. According to the Korea Real Estate Board, Seoul apartment prices fell by 0.31% this week, narrowing the decline for the fourth consecutive week from -0.74% at the end of last year to -0.67% in early this month. This is believed to be because homeowners partially withdrew listings or raised asking prices after the government lifted regulations on all areas except the Gangnam 3 districts and Yongsan-gu, and announced tax relief measures such as excluding two-homeowners from comprehensive real estate tax surcharges.
According to the real estate big data company Asil, as of the 26th, the number of apartment listings in Seoul decreased by 4.1%, from 52,210 five days ago to 50,100 currently.
However, experts say it is premature to conclude that the housing market has turned to a rebound mood based on short-term indicators and some transactions. The key indicator that gauges the housing market, transaction volume, is still sluggish. Above all, experts believe it is difficult for transaction volume to increase significantly due to the ongoing interest rate hike trend and persistent concerns about falling housing prices.
In fact, according to the Seoul Real Estate Information Plaza, as of the 26th, 320 apartment sales in Seoul have been recorded this month. Considering that the counting period for this month is still ongoing, it remains at a level of transaction disappearance. In January last year, the number of apartment transactions in Seoul was 1,090.
Yoon Ji-hae, chief researcher at Real Estate R114, said, "For housing prices to be judged as having hit bottom and to rise, transaction volume must support it," adding, "The market can be considered to have rebounded only when the transaction volume reaches around 2,000, which was the average number of apartment transactions in Seoul last year."
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