Due to the impact of the Oct. 15 measures, buying sentiment for apartments in Seoul turned downward for the first time in nine weeks.
According to the weekly apartment supply-demand trends by the Korea Real Estate Board (KREB) on the 2nd, Seoul's apartment sales supply-demand index for the fourth week of this month (as of Oct. 27) came to 103.2, down 2.2 points (p) from the previous week (105.4). This is the first decline in the figure since the fourth week of August (99.1).
The sales supply-demand index quantifies the balance between demand and supply. A reading above 100 means there are more people seeking to buy apartments in the real estate market than to sell. Buying power still outweighs selling, but the upward trend has, for now, been checked.
Buying sentiment fell more sharply in the Gangbuk area (central, northeastern, and northwestern zones) than in the Gangnam area (southwestern and southeastern zones). By region, the Gangbuk area's sales supply-demand index (101.6) fell 3.2 points (p) from the previous week (104.8) over the same period. The Gangnam area slipped 1.3 p from 106.0 to 104.7.
Within the Gangbuk area, the central zone (Jongno District, Jung District, Yongsan District) dropped 5.7 p from 115.0 to 109.3. The northwestern zone, which includes Mapo District, fell 2.8 p from 107.7 to 104.9. The northeastern zone, which includes Seongdong and Gwangjin districts—the core of the Han River belt—and Nowon, Dobong, and Gangbuk districts, became a supply-advantaged region, as the sales supply-demand index declined from 101.8 to 99.0.
The real estate industry interprets that the Gangnam area is relatively less affected by the Oct. 15 measures, as it had already long been designated as a land transaction permit zone.