(Maekyung DB)

Seoul apartment buying sentiment rises for 7th week in a row after the presidential election

(Maekyung DB)

Seoul apartment buying sentiment has been on the rise for the seventh week in a row since March. According to the Korea Real Estate Agency on the 22nd, the Seoul apartment sales and demand index in the third week of April was 91.4, up 0.4 points (p) from 91.0 a week ago. This is the highest figure in three months since January 10 (92.0) of this year.

The sales supply and demand index is a numerical value between 0 and 200, with the ratio of supply and demand analyzed by the Real Estate Agency by analyzing the survey of member brokerage firms and the number of items for sale on the Internet. With 100 as the baseline, the closer to 0, the greater the supply, and the closer to 200, the greater the demand. Therefore, an index below the baseline of 100 means that there are more sellers than buyers of apartments. Seoul is divided into five regions: the Gangbuk area (the downtown area, the northeast area, the northwest area) and the Gangnam area (the southwest area, the southeast area).

Of the Gangnam area, the southeast area (Gangnam, Seocho, Songpa, Gangdong-gu) fell from 96.5 last week to 96.1 this week, but recorded the highest figure among the five major areas in Seoul. In the other four regions, the indices rose at the same time. In the southwestern region (Yangcheon, Gangseo, Guro, Yeongdeungpo, Dongjak, and Gwanak-gu), where there are many apartments for reconstruction, such as Mok-dong and Yeouido-dong, the number rose from 91.0 in Jeonju to 91.5 this week. Downtown areas, such as Yongsan and Jongno-gu, where development expectations have grown due to the relocation of the presidential office, rose from 89.1 in Jeonju to 91.3 this week, recovering the 90-point mark. The northeast region (Seongdong, Gwangjin, Nowon, Dobong, Gangbuk-gu) and the northwestern region (Eunpyeong, Mapo, Seodaemun-gu) also rose to 88.7 and 89.1, respectively.

Gyeonggi-do’s sales and supply index also recorded 92.5, higher than Jeonju’s (92.3), as apartment prices in new cities such as Bundang and Ilsan, which had high expectations for reconstruction, showed a strong trend. The province also recorded an improvement of 96.2 from last week (96.0). The national sales and supply index is on an upward trend at 94.4.

The steady rise in buying sentiment seems to be attributable to an increase in apartment sales on expectations of the new government’s easing of real estate regulations. According to the Seoul Real Estate Information Plaza, the total number of apartment sales in Seoul in January this year was 1,087, and in February, it recorded 810, a further decline. In fact, at the end of February, the Seoul apartment sales and demand index fell to 86.8. However, in March, when the 20th presidential election was held, the number of apartment sales in Seoul recorded 1,325, an increase of about 22 percentage points from January. It is also a figure that has increased by more than 60 percentage points compared to February.

[고혜영 인턴기자]

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