Apartment listings in Gyeonggi Province, which had been considered an alternative area for 'homeownership,' are piling up. Amid fears of economic recession, loan regulations, and political turmoil, the real estate market is rapidly cooling, leading to a backlog of apartment listings in the Gyeonggi area.
As of the 27th, data from the real estate big data company Asil and KB Real Estate show that the number of apartment listings in Gyeonggi Province stands at 167,971. This figure marks a 1.7% increase compared to the average number of apartment listings in December of the previous year.
During the same period, Yangpyeong County saw the largest increase in listings in Gyeonggi Province, with a 6.3% rise this year. Other areas with high increases include ▲Osan City (5.5%) ▲Suwon City Gwonseon District (4.9%) ▲Gwangmyeong City (4.3%) ▲Bucheon City Sosa District (4.1%) ▲Seongnam City Sujeong District (4.0%).
The number of apartment listings in Gyeonggi Province has been steadily increasing since September of last year. After recording an average of 147,270 listings in August of last year, Gyeonggi Province saw an increase to 151,632 listings in September. This continued with 158,751 listings in October, 164,304 in November, and 165,148 in December.
As a result, the proportion of apartment listings in Gyeonggi Province within the nationwide total has expanded from 27.5% in September of last year to 28.2% as of today.
The Gyeonggi area has been regarded as an alternative to high home prices in Seoul, where apartment transactions were relatively active. However, with loan regulations, fears of economic recession, and recent political turmoil, the real estate market has frozen, leading to a pileup of apartment listings in the Gyeonggi area.
KB Real Estate noted that 'Seoul's trend of owning one good property has increased price pressure, leading genuine buyers to select the Gyeonggi area as an alternative,' adding, 'Amid the recent price adjustment process, the Gyeonggi apartment listings that had previously concentrated have become stagnant.'
Apartment transactions in the Gyeonggi area are also declining. The number of transactions exceeded 10,000 from August to October of last year, but by November, it had fallen to 8,843.
The backlog of apartment listings in the Gyeonggi area is likely to continue for some time. According to the Korea Real Estate Board, the apartment sales supply and demand index for the Gyeonggi area stood at 95.5 in December of last year, showing a downward trend since September of the previous year. The index was 98.1 in September of last year, followed by declines to 97.1 in October and 96.3 in November for three consecutive months.
The sales supply and demand index means that there are more people wanting to sell homes than those wanting to buy, suggesting a period of stagnation in the Gyeonggi real estate market.