Around Jamsil Also "Up 200 Million"... Expert Says "Increase Until Second Half" [Unusual House Prices]

The Real Estate Spark Ignited by "Osso-gong"
Seoul's Housing Price Surge Spreads Amid Secret Deals and Policy Blind Spots

The upward trend in housing prices in Seoul is becoming serious. Real estate agencies in Jamsil, Songpa-gu, Seoul, are actively engaging in 'secret operations' to evade crackdowns by the city and government, who are trying to find the culprits behind the rising housing prices. Despite many real estate agencies being closed, housing prices in this area continue to rise day by day.

The heat of the housing price surge that started here has spread to surrounding areas such as Gangdong, Seongdong, and Gwangjin, causing prices there to jump as well. The lifting of Seoul's land transaction permit zones acted as a catalyst. The combined effects of lowered loan interest rates and moving season demand have increased the rate of rise. Demand from provincial areas has also poured in, pushing prices up further.

In real estate communities, the term 'Osso-gong' (a ball shot by Seoul Mayor Oh Se-hoon) has even emerged. While the market is about to overflow, Seoul city's perspective on this is out of touch with reality, which only strengthens this viewpoint. The city stated that after the lifting, 'average housing prices actually fell' (on the 28th of last month) or that 'the rate of increase is minimal' (on the 9th of this month).

It was only on the 16th that they reported housing prices in Jamsil-dong, Songpa-gu, and Samsung, Daechi, and Cheongdam-dong in Gangnam-gu rose by an average of 3.7%. Mayor Oh also said on the 10th of this month, nearly a month after the land transaction permit zone system was lifted, "If the housing price increase becomes excessively abnormal, we may reconsider regulations." However, even if re-designated, it will be difficult to rein in the already unleashed surge in housing prices. It is judged that the mayor's statement came from a sophisticated calculation considering the early presidential election.

Experts, who had diagnosed that the real estate market was stagnant and political uncertainty had become too great, are revising their forecasts as they observe this situation. They are giving weight to the view that a rising market may come in the second half of this year. Given the increased possibility of an early presidential election, it will be difficult to strongly enforce loan regulations, which is analyzed to act as a spark to lift the market.