After the government's June 27 household debt measure announcement, the fluctuation rate of apartment prices in Seoul has shown significant changes. Seoul's apartment sales prices decreased last week but transitioned back to an increase this week.
According to Real Estate R114 on the 11th, nationwide apartment sales prices increased by 0.29% in the second week of July compared to the previous week. The rate of increase significantly rose from last week’s 0.02%. Seoul saw an increase of 0.53%, marking a transition from the previous week's -0.02%. Real Estate R114 noted that the weekly fluctuation rate in Seoul is swinging greatly due to the shockwave from the June 27 household debt measures.
Gyeonggi and Incheon rose by 0.17%, while the metropolitan area increased by 0.37%. The five major cities showed a slight increase of 0.04%, and other regions displayed minimal growth at 0.02%. Among the 17 cities and provinces nationwide, 10 areas saw an increase, and 7 experienced a decline, indicating a stronger presence of rising regions.
By major regions, Seoul (0.53%), Sejong (0.23%), and Gyeonggi (0.21%) reported increases, while Chungnam (-0.10%), Gyeongbuk (-0.06%), and Jeonnam (-0.06%) experienced decreases.
The nationwide apartment rental prices rose by 0.06%, maintaining the previous week’s rate of increase. Seoul saw an increase of 0.10%, the metropolitan area rose by 0.07%, Gyeonggi and Incheon increased by 0.04%, the five major cities went up by 0.03%, and other regions rose by 0.01%, showing an upward trend in the main areas. Among the 17 cities and provinces, 12 saw increases, 1 remained unchanged, and 4 experienced declines, with rising areas dominating.
Real Estate R114 stated, "The strong loan regulations from the June 27 measures were immediately implemented (on the 28th of last month), leading to significant aftershocks. In particular, major redevelopment and reconstruction maintenance projects in Seoul, which have not yet received administrative disposal approvals, are facing a reduction or prohibition of move-in loans for multi-homeowners, resulting in related petitions exceeding 10,000 signatures."
It added, "Since maintenance projects are a key part of the supply measures that the government will soon announce, it seems necessary to reassess some aspects for the goal of invigorating supply in urban areas. Additionally, individuals who conducted preliminary contracts before the June 27 measures are at risk of losing their deposits (ranging from hundreds of thousands to millions of won) even though the law recognizes these contracts. Moreover, upcoming business sites that will be announced face limited balance loan amounts, which may dampen the willingness of construction companies to expand supply in the second half of this year."
It added, "In particular, due to loan regulations, many people who have given up on acquiring their own homes are moving into the rental market, leading to an expected instability in rental prices in key areas, suggesting that some aspects of the June 27 measures need to reach a compromise with the real market."