It turned out that dwellings sales sentiment cooled nationwide, including in Seoul, last month. This came as the government moved toward additional real estate restrictions, such as releasing plans to end the grace period for heavier capital gains taxes on owners of multiple homes.
According to the real estate market consumer sentiment survey results released by the Korea Research Institute for Human Settlements (KRIHS) on the 17th, the nationwide dwellings sales market consumer sentiment index in Feb. this year fell 9.8 points from the previous month to 112.3, shifting to a flat phase.
The real estate market consumer sentiment index is surveyed in the last week of every month, targeting brokerages in operation and general households across 152 cities, counties and districts nationwide. An index above 100 means more respondents said prices rose or transactions increased. Below 95 is classified as a downward phase; 95 or more but less than 115 as a flat phase; and 115 or more as an upward phase.
Seoul stayed in an upward phase at 121.3, but fell 16.9 points, the largest drop in the country. This is the lowest since July last year (117.3), right after the June 27 loan restrictions.
Seoul's dwellings sales consumer sentiment rose to 137.5 in Oct. last year, then fell to 128.3 in Nov. last year after the Oct. 15 measures designated all of Seoul as a regulated area. It then rose for two straight months to 130.9 in Dec. and 138.2 in Jan., but plunged this time.
The Seoul metropolitan area dwellings sales market consumer sentiment index (114.4) fell 13.1 points from the previous month, shifting to a flat phase. Seoul (121.3) fell 16.9 points, Gyeonggi (112.6) fell 11.5 points, and Incheon (104.2) fell 10.7 points.
Non-capital regions (109.6) fell 5.8 points, also shifting from an upward to a flat phase. North Gyeongsang (102.9) and South Chungcheong (98.4) saw relatively large declines of 14.1 points and 13.4 points, respectively.
This is seen as a result of the government signaling a policy stance of strengthening regulations on the real estate market, such as releasing on the 12th of last month that it will end, on May 9, the scheduled sunset date, the grace measure for heavier capital gains taxes on owners of multiple homes.
Kwon Geon-woo, a senior researcher at the Korea Research Institute for Human Settlements (KRIHS), said, "From late Jan., the president and the government hinted at stronger regulations on the real estate market, and that was reflected in the Feb. statistics."
Meanwhile, the nationwide dwellings jeonse market consumer sentiment index fell 0.9 points from the previous month to 109.8, maintaining a flat phase. The nationwide dwellings market consumer sentiment index combining sales and jeonse fell 5.3 points over the same period to 111.1, shifting to a flat phase.
The nationwide land market consumer sentiment index fell 1.5 points over this period to 82.5, continuing a downward phase. The real estate market consumer sentiment index combining dwellings and land nationwide dropped 5.0 points from the previous month to 108.2.