Index signals Seoul real estate market gaining vitality

A view of apartment complexes in Seoul on Tuesday (Yonhap)

SEJONG – Recent indices point to a possible revitalization of the real estate market later this year, with rising expectations for deregulations, which had been promised by President-elect Yoon Suk-yeol.

A major housing index showed on Friday that the gap between the number of people who want to buy homes and those who want to sell homes has narrowed somewhat. But potential sellers still outnumbered potential buyers.

According to the Korea Real Estate Board, Seoul’s apartment exchange index came in at 87.5 this week, up 0.5 points from 87 the previous week. The index recorded positive growth for the second consecutive week.

Although the index below 100 means that there are more home sellers than home buyers, the change in the index in Seoul’s Gangnam district suggests that more households pinned their hopes on deregulations involving a feasible reconstruction and redevelopment of the next Yoon administration.

The so-called Gangnam District — made up of Seocho-gu, Gangnam-gu, Songpa-gu and Gangdong-gu — recorded the strongest growth among the five major capital regions: by 0.8 points to 85.7 last week to 86.5 this week. .

The northeastern region – Gwangjin-gu, Seongdong-gu, Nowon-gu, Dobong-gu and Gangbuk-gu – saw the index jump 0.6 points to 86.5.

The index topped the 90 mark in the southwest region — Gangseo-gu, Yangcheon-gu, Guro-gu, Yeongdeungpo-gu, Dongjak-gu and Gwanak-gu — from 89.7 to 90, 1.

Increases were also seen in downtown Jongno-gu, Jung-gu and Yongsan-gu at 85.9 and in the northwest area of ​​Eunpyeong-gu, Seodaemun-gu and Mapo-gu at 86, 8.

Gyeonggi Province, which surrounds Seoul, saw the index rise 0.1 points to 91.2, as hopes grow for the reconstruction of high-density residential towns such as Goyang City’s Ilsan, Jungdong from Bucheon City and Bundang from Seongnam City.

The nationwide home exchange index also rose by 0.1 points to 92.8: while increases were seen in areas such as Busan, Ulsan, North Jeolla Province, South Jeolla Province and South Gyeongsang Province, a drop was reported in Incheon from 92.9 to 91.8.

By Kim Yon-se ([email protected])

Penny D. Jackson