The real estate buying sentiment in Seoul is reviving amid hopes of a 'bull market.' The buying dominance index in the Seoul area recorded its highest level in nearly four years since October 2021, a period of rapid real estate price increases. As the buying sentiment in some areas, such as Gangnam's three districts and Yongsan District, recovers rapidly, the buying dominance index is also rising sharply.
The buying dominance index is a measure of the proportion of buyers to sellers in the dwellings market. When this index exceeds 100, it means there are more buyers, and the opposite indicates that there are more sellers.
According to KB Real Estate on the 18th, as of the 9th of this month, the buying dominance index in the Seoul area was 82.98, the highest level recorded in 3 years and 8 months since October 2021 (86.1). Specifically, the responses indicating 'many buyers' were 23.21, 'similar' was 36.55, and 'many sellers' was 40.24.
In particular, the buying dominance index is rising rapidly in the Gangnam area. The buying dominance index in the 11 districts of Gangnam was 91.71. Just a week ago, on the 2nd of this month, this area’s buying dominance index was 79.32. Since the uncertainty has decreased after the presidential election, it appears that demand to secure 'one solid dwelling' has increased.
As the buying sentiment recovers, housing prices are also rising rapidly, particularly in the Gangnam area. The apartment sales price index in the 11 districts of Gangnam was 101.59 as of the 9th of this month, up 0.52 from the previous week (101.07).
A representative from a certified real estate agency in Gangnam noted, 'There is simply no inventory, and sometimes the asking price increases until the seller reduces their account.'
Although not as much as Gangnam, buying sentiment is also recovering in the Gangbuk area. The buying dominance index in the 14 districts of Gangbuk was recorded at 73.18. While this is lower than the Gangnam area, considering that the buying dominance index was only 66.45 last week, it seems that the real estate atmosphere has changed within a week.
This recovery of real estate buying sentiment is spreading from Seoul to the greater metropolitan area. The buying dominance index in the greater metropolitan area recovered to 50.03 from 44.69 last week.
However, in the local real estate market, the polarization due to the increase in demand for 'one solid dwelling' is intensifying, and buying demand is still not high. The nationwide buying dominance index is only 38.61, and the increase in the index compared to last week is limited to 3.34.
In Daegu, the buying dominance index was 14.32, the lowest buying sentiment in the country. Following Daegu, Busan was at 14.48, followed by Gwangju (19.38), Chungnam (21.06), Daejeon (23.31), Gyeongbuk (23.69), Jeonnam (25.96), Gyeongnam (30.25), Incheon (30.79), Chungbuk (39.65), Gangwon (39.83), Jeju (41.91), Ulsan (42.28), and Jeonbuk (57.11).
In particular, in Sejong, the buying dominance index soared above 130 before the presidential election due to expectations of the transfer of the administrative capital, but after the election, it plummeted to 50.94.