Seoul has seen a higher number of apartment units for sale on the market than market needs for two consecutive weeks since loan restrictions and higher interest rates came into play. South Korean Prime Minister Kim Boo-kyum said that home buyers are gaining the upper hand over those who intend to sell their houses, adding that he is concerned about any sharp drop in housing prices.
According to the Korea Real Estate Board on Friday, sales supply index remained lower than the standard value of 100 for two consecutive weeks - the 4th week of November (as of Monday) with 98.6 vs. the previous week at 99.6. A lower sales supply index than the threshold of 100 translates into houses for sale on the market outnumbering those who want to buy a home.
The sales supply index of apartment units in Seoul recorded 99.6 last week, lower than 100 for the first time in seven months, to drop further by 1 point this week. A real estate agent in Gangdong District, eastern Seoul, surnamed Kim said, “Since this month, I have received only a small number of calls from home buyers who look for an apartment unit,” adding that those who put their properties on the market have no intention of lowering the prices, which drives the two groups on the opposite of the market into a tug-of-war.
Sales supply index dropped from 99.5 of last week to 98.2 in southeast districts of Seoul (Gangnam, Seocho, Songpa and Gangdong) while going from 99.7 to 98.2 in southwest areas (Yangcheon, Gangseo, Guro, Yeongdeungpo, Dongjak and Gwanak). Only the central part of the capital city (Yongsan, Jongno and Junggu) exceeded the threshold of 100 to record 100.7