MK News – Prices of 2T11 apartments fall the most in 5 years

Domestic apartment prices in the second quarter of this year decreased by a maximum of five years. On the other hand, the value of the apartments in Seoul has only increased for me, and it has become a "pure" effect. According to the Bank of Korea (BOK) on the 15th, the value of national apartments in the second quarter fell 0.3% from the end of the previous quarter. This is the largest decline since the first quarter of 2013 (-0.7%). Quarterly prices have been declining for only two years.
The decline in national apartment prices was led by the province. The price of local apartments excluding the metropolitan area decreased by 0.9% in the second quarter. The decline was the largest since the first quarter of 2004, when relevant statistics began to be written. (-2.3%) and Ulsan (-2.5%), while Chungnam, Chungnam and Gyeongbuk provinces fell by more than 1%.

In contrast, Seoul apartment prices rose for the fourth year in a row, up 0.8% in the second quarter. The increase in apartment prices in Seoul was 3.6% in the first quarter of this year, but the preference for a single house persisted because of the tax and housing policy. In addition to rebuilt apartments centered on Gangnam, there is a rising trend in various areas of Seoul, including Kangbuk. Apartment prices in Seoul increased by more than 1% between the second quarter of last year and the first quarter of this year.

The Bank of Korea expects home selling prices to remain relatively stable in the second half of this year in the Economic Outlook Report. This is an badysis that the housing market will not show the same boom as in the past due to the increase in the number of residents and rising interest rates.

The BOK predicts that house prices will continue to stabilize next year. This is because the volume of tenants exceeds the long-term average.

On the other hand, apartment rents in Korea declined 1.1% qoq in the second quarter. This is the largest since the financial crisis in the first quarter of 2009 (-1.5%). Seoul's rental price fell 1.0 percent, marking the biggest drop in six years. It was -1.3% in the second quarter of 2012.

In the province, rents for apartments were the lowest in 14 years. The decrease is 1.1% compared to the end of the previous quarter, identical to that of the third quarter of 2004.

By region, Sejong (-3.2%), Ulsan (-3.1%) fell by more than 3%, Gyeongnam Province by -1.9% and Chungnam -1.8%.

The Bank of Korea predicts that prices will be stable due to the increase in chartering demand next year. Real estate prices are expected to rise sharply and the relocation of the reconstruction is planned for a large number.

In the first half of this year, the charter index was 113, the lowest since 2004 (100). The lower the supply and demand index, the better the housing supply.

[윤원섭 기자]
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