Purchase Dominance Index Hits Highest in 2 Years
Non-Gangnam Areas Like Godeok and Gireum Also See Consecutive Increases
Homeowners' Price Negotiation Power Strengthens Further
"Every weekend, 7 to 8 groups come looking to buy houses. Many customers just leave because there are no more properties to broker" (D Real Estate, Godeok-dong, Gangdong-gu, Seoul)
Seoul apartment buying sentiment is showing a rapid recovery. The Buyer Dominance Index, which indicates the number of buyers, reached its highest level in two years. Analysts say that as buyers sharply increase, homeowners' price negotiation power has grown. With buying sentiment revived, some areas are seeing housing prices approach previous peaks, and older listings are being sold off, signaling a shift in the market atmosphere.
More Buyers
According to KB Real Estate on the 3rd, Seoul's Buyer Dominance Index was recorded at 47.1 last month, up 15 points from the previous month (32.1). This is the highest since May 2022 (59.7). The Buyer Dominance Index means that if it exceeds 100, buyers outnumber sellers, and if below 100, sellers outnumber buyers. Although it has not reached the baseline, buying demand is rapidly recovering. Seoul's Buyer Dominance Index hovered around the 20-30 range from the end of last year until May.
This trend is also reflected in statistics from the Korea Real Estate Board. As of May, Seoul's Apartment Supply-Demand Index was 93.9, up 3.4 points from the previous month (90.5). This is the highest in two years and six months since November 2021 (98.6). This index means that the closer to 0, the more apartment supply there is, and the closer to 200, the more apartment demand there is.
Prices Also Rose
Supported by buying demand, rising transactions are continuing. In Godeok-dong, Gangdong-gu, 'Godeok Gracium' saw an 84㎡ unit (4th floor) traded on the 21st for 1.8 billion KRW, approaching the previous highest price (1.89 billion KRW). Another 59㎡ unit (11th floor) in the same apartment sold on the 7th for 1.4475 billion KRW, about 94.6% of the previous highest price (1.53 billion KRW). In Gil-eum-dong, Seongbuk-gu, an 84㎡ unit (17th floor) in 'Lotte Castle Clacia' was traded on the 9th at the same previous highest price of 1.43 billion KRW.
The industry explains that a seller-favored market is gradually forming. A representative from H Real Estate Agency in Dangsan-dong, Yeongdeungpo-gu said, "Properties that hadn't sold for 2-3 years are now all being traded recently, and since prices are expected to rise further, many homeowners are hurriedly withdrawing their listings." An industry insider added, "Because buyers willing to pay higher prices are appearing, sellers sometimes cancel deals after paying double compensation (twice the deposit), and there are cases where buyers' accounts are blocked to prevent payment of the middle installment," explaining, "It is clear that buying demand has noticeably increased."
Meanwhile, according to the Seoul Real Estate Information Plaza, the volume of apartment transactions in Seoul in May (based on contract dates) totaled 4,935 cases reported by the 29th of last month. This is the highest in three years since May 2021 (5,045 cases), showing transaction volumes comparable to a real estate market boom.
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