Collusion Attempts Continue in Apartment Owners' Group Chats
"Please do not list jeonse prices below O billion won. At least O billion won must be received for the value of our apartment to increase."
Recently, owners who attempted to collude on house prices using KakaoTalk open chat rooms were sent to the prosecution on charges of violating the Licensed Real Estate Agents Act. As Seoul City announced it will continue its intensive investigation, tension is expected to rise among owners, but even at this moment, attempts at collusion continue in numerous group chat rooms.
Apartment complex viewed from Namsan, Jung-gu, Seoul. (This photo is not directly related to the article.) Photo by Yonhap News
Seoul City stated it will take strict measures against such collusion acts and warned of strong responses including immediate administrative sanctions and investigation requests if illegal activities occur. In particular, group chat rooms containing messages like "Let's not sell below OO billion won" cause price distortion and can harm consumers, thus are considered a serious problem.
On the 2nd, industry insiders also mentioned that moves to raise not only house prices but also jeonse prices are openly taking place. Attempts to collude on jeonse prices are especially active in group chat rooms of newly built apartments about to be occupied. Some owners believe that raising jeonse prices will lead to more favorable appraisals.
Posts such as "We are contacting real estate agents to take down low-priced listings" have also appeared in the group chats. They argue that jeonse prices must be raised to increase the appraisal value of the property.
Seoul City plans to crack down on this and strengthen inspections to establish order in the real estate market. It explained that caution is needed to avoid involvement in price collusion or unfair trading practices during real estate transactions, and reporting is necessary if such acts are witnessed.
Seoul City stated, "We will respond strongly with a zero-tolerance policy against illegal acts that threaten housing stability," and added, "We will strive to increase transparency in the real estate market and create a safe trading environment."
Earlier, ahead of the peak spring moving season, Seoul City conducted focused inspections on illegal real estate activities such as price collusion and false or exaggerated advertisements. Priority was given to areas with high jeonse price ratios like newly built villas at risk of 'empty jeonse' and real estate agencies near large apartment complexes about to be occupied.
The main inspection items include ▲ unlicensed or unregistered illegal brokerage ▲ false listings and price collusion disrupting real estate transaction order ▲ violations of internet listing and advertising regulations ▲ violations in preparing contracts and property confirmation/explanation documents ▲ excessive brokerage fees.
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