Following the government's household debt policy announcement on June 27, transaction volume for apartment sales in Seoul sharply decreased in July, resulting in a significant reduction in the increase of sales prices.
According to Real Estate R114 on the 25th, the national average apartment sale price in the fourth week of July rose by 0.03% compared to the previous week. The increase has slowed down from 0.32% last week. In Seoul, there was a 0.13% increase, reflecting a substantial decrease from the previous week's increase of 0.49%.
In the Gyeonggi-Incheon area, prices decreased by 0.01% compared to last week, changing to a downward trend. The metropolitan area rose by 0.06% due to the influence of Seoul. The five major cities fell by 0.04%, while other regions dropped by 0.13%. Among the 17 cities and provinces nationwide, only Seoul saw an increase, with two places remaining stable and 14 areas declining, indicating that the majority faced a drop.
Regionally, increases were seen in Seoul (0.13%), Gyeonggi (0.00%), and Ulsan (0.00%), but declines were prominent in Sejong (-0.37%), Jeollanam-do (-0.17%), and Gangwon (-0.17%).
The national average rent price for apartments rose by 0.01%, maintaining the previous week's increase. In Seoul, the price increased by 0.03%, expanding the increase from last week (0.01%), while the metropolitan area and the Gyeonggi-Incheon region also rose by 0.02% and 0.01%, respectively. In contrast, the five major cities saw a decline of 0.02%, and other regions dropped by 0.03%. Among the 17 cities and provinces, there were four areas with increases, one stable, and 12 with declines, showing a majority of falling areas.
Real Estate R114 noted, "Due to the household debt policy announcement on June 27, transaction volume for apartment sales in Seoul has remained around 2,000 cases as of now. Considering the 30-day reporting period, a sharp decline is anticipated compared to last month's 12,000 cases. The demand contraction appears significant across the metropolitan area, as this trend is commonly observed in high-priced areas such as the Gangnam three districts (Gangnam, Seocho, and Songpa) and in mid to low-priced areas like Nowon, Dobong, and Gangbuk."
He added, "As transaction volume decreases, the price increases for apartments in Seoul also show a tendency to slow down each week, indicating that the government's household loan regulation policy is having a major impact on the sales market. However, in the rental market, which stands in contrast to the sales market, there is also a noticeable trend of rising prices centered on Seoul due to the balloon effect. Considering the high conversion rate from monthly rent to lease (5-6% annually) relative to bank loan interest rates, the housing cost burden for low-income households needing accommodation between lease and rent is expected to increase."