The representative of a real estate agency in Hangdang-dong, Seongdong District, said, "There were many inquiries from people wanting to buy before prices continued to rise for a while, but after the implementation of loan regulations, they noticeably decreased."
The real estate office in a Seongdong District apartment complex, visited on the afternoon of the 30th, appeared quiet with no visitors or phone inquiries. A representative explained that purchase inquiries have drastically decreased, and more people are asking whether their intention to list rental properties falls under the rental loan regulation policies.
The representative of a real estate agency in Mapo District also noted, "Here, we only handle small complexes, so there is even less inventory. Transactions will likely still occur in larger complexes like Mapo Raemian Prugio (3,885 units)." He added, "The recent price increase combined with the issue of additional designation of land transaction permission zones has led to many inquiries. We will need to observe the situation further after the loan regulations, but given the recent popularity, it seems unlikely that prices will drop for a while."
Apartment prices in the so-called "Han River Belt" encompassing Mapo and Seongdong districts recorded the highest price increase rate in history. At one point, the market became overheated, with sellers withdrawing listings due to prices rising day by day.
However, on the 27th, as part of measures to strengthen household debt management, it was announced that ▲ multi-homeowner purchase purpose housing loans would be restricted ▲ the maturity of loans in the metropolitan area and regulated areas would be shortened to within 30 years ▲ the loan limit for housing purchase loans would be capped at 600 million won ▲ a requirement to move in within six months would be imposed for loans executed in the metropolitan area and regulated areas, leading to predictions that the overheating trend would stabilize. With the maximum housing loan limit capped at 600 million won, only those with cash will be able to enter the Han River Belt.
According to the Korea Real Estate Board (REB) weekly apartment price trends, as of the 23rd, the sales price of apartments in Seoul rose by 0.43% compared to the previous week, marking a 21-week consecutive rise. In particular, Seongdong District saw a surge of 0.99%, recording the highest increase rate among the 25 districts in Seoul. Mapo District increased by 0.98%, making it the second-highest increase. It showed a larger increase compared to Songpa District (0.88%) and Gangnam District (0.84%), which had been on the rise recently.
Corresponding to the rising price index, actual transaction prices also surged. 'Seoul Forest Riverview Xi' in Seongdong District was traded at 2.2 billion won on the 1st, which is an increase of 350 million won compared to last June's transaction price of 1.85 billion won. The 84㎡ unit of 'e-Pyeonhan Sesang Oksoo Park Hills' was traded from 1.895 billion won in January to 2.52 billion won on the 18th of this month, signifying an increase of 625 million won in five months. In Mapo District, the 84㎡ unit of Mapo Raemian Prugio also saw a rise of 300 million won, trading at 2.25 billion won on the 28th of last month, compared to 1.95 billion won in January.
There are analyses suggesting that demand has arisen as redevelopment projects are taking place along the Han River, and the area is expected to be additionally designated as land transaction permission zones. In February and March, as the land transaction permission system was lifted and expanded, Gangnam's three districts (Gangnam, Seocho, Songpa) and Yongsan District were bound by the permission system, leading to price surges and decreases in inventory, as well as increased purchase inquiries in nearby areas like Seongdong and Mapo districts.
However, responses indicate that inquiries have noticeably decreased since the announcement of regulations. The representative of a real estate agency in Hangdang-dong, Seongdong District, said, "Many were withdrawing listings due to the rising prices. Recently, very few listings have come out," adding, "There seems to be no intention to lower prices even after the announcement of loan regulations. It will likely be difficult to transact for a while."
A representative from a real estate agency in Ahyeon-dong, Mapo District, said, "Still, there were occasionally inquiries about purchases, but since the announcement of loan regulations, they have sharply decreased. Not a single inquiry came in today," and noted, "Since inventory isn't increasing and transactions are not occurring, it seems a stagnation period will continue for a while."
Among residents, there are simultaneous feelings of anticipation regarding rising house prices and concerns about market stagnation caused by loan regulations. Mr. Jang (65), met at an apartment complex in Mapo District, said, "I never intended to sell my house and plan to keep living here, but the recent price rise was frightening," and added, "I've frequently been asked by friends about how it would be to sell for real demand."
He continued, "However, it seems some residents are worried about prices potentially dropping due to the implementation of loan regulations," and added, "They are looking to see if any listings come in at lower prices."
Experts say that this may be a temporary stagnation, and the situation in the second half of the year will need to be watched. Professor Go Jun-seok, head of the Yonsei University Sangnam Business School, stated, "The effects of the loan regulations may show up, but they will likely be short-lived. In particular, first-time home buyers tend to become withdrawn when loan regulations are enforced," and he indicated, "After observing market movements and additional regulatory measures in the second half of the year, buyers might decide to proceed. }}