"Found the Right Price?"... Apartment Transactions in Gyeonggi Surge by 1,000 Units

[Asia Economy Reporter Ryu Tae-min] The volume of apartment transactions in the Gyeonggi region, which had been frozen solid, has surged by about 1,000 units in a month, showing signs of gradual recovery. It is interpreted that transactions have become active as the gap between sellers and buyers has narrowed due to the continued decline in housing prices.

According to the Gyeonggi Real Estate Portal on the 15th, the number of apartment sales transactions last month was counted at 4,000 as of that day. This is an increase of 847 transactions (26.8%) compared to the previous month (3,153 transactions), recovering to the level of transaction volume in June last year (4,013 transactions). Considering that the transaction reporting deadline is 30 days, there is room for the number of transactions to fluctuate, so the volume of sales transactions is expected to increase further.

The volume of apartment transactions in Gyeonggi had sharply dropped to 2,914 in July last year and remained in the 2,000 range for four consecutive months. It then recovered to 3,061 in November, but this was less than half compared to April last year, which had the highest volume at 6,642 transactions.

The partial recovery in transaction volume this year is interpreted as the effect of the narrowing gap between sellers and buyers due to a significant drop in housing prices. According to the Korea Real Estate Board, apartment sale prices in the Gyeonggi region have been declining for 54 consecutive weeks since the fifth week of January last year, with a cumulative decrease of 14.31%. As apartment prices fell compared to last year, transaction volumes increased significantly, especially in areas with high demand.

Looking at the actual status by region, the number of sales transactions surged in major metropolitan areas such as Seongnam, Goyang, and Suwon. In Seongnam, the number of transactions was only 45 in September last year but recorded 181, more than four times, this year. During the same period, Goyang increased by 124 transactions (76.5%) from 162 to 286, and several other areas such as Suwon (201 → 369), Hanam (26 → 111), and Yongin (154 → 268) also showed an increasing trend. In particular, Gwacheon, which had only 3 transactions in July last year, increased more than tenfold to 36 last month.

Additionally, there are forecasts that potential demand will increase as the application of the Special Bogeumjari Loan becomes more active. Song Seung-hyun, CEO of Urban and Economy, said, “The demand is reviving as apartment prices, which had risen significantly, are adjusting,” adding, “Moreover, the effects of the Special Bogeumjari Loan and deregulation are expected to create additional demand.”

However, some analyses suggest that it is still too early to see this as a signal of an upward trend in the housing market. CEO Song added, “It is difficult to assume that an increase in demand will necessarily lead to a price rise,” and said, “It would be more accurate to see that active transactions are likely to occur within the currently formed price range.”