Seoul Apartments: More Buyers Than Sellers… Sales Supply Index Surpasses 100 for First Time in 7 Weeks

Popular areas like Seongdong, Gwangjin, and Mapo districts show strength, exceeding the benchmark again.

Seoul's apartment buyer sentiment has once again surpassed the benchmark of 100. This is due to an increase in prospective buyers amid a general shortage of available properties.

According to data from the Korea Land & Housing Institute, this week's Seoul apartment sales supply index recorded 100.2, breaking the benchmark of 100 for the first time in seven weeks since the third week of July (100.1).

A sales supply index higher than the benchmark of 100 signifies that there are more buyers than sellers in the market.

 View of Seoul apartments from Namsan [Yonhap News Archive Photo]

The Seoul apartment sales supply index, which recorded 104.2 in the fourth week of June (June 23), began to decline after the June 27 loan regulations, falling below the benchmark (99.3) in the fourth week of July (July 21).

However, this week, the index surpassed the benchmark again as price increases accelerated in popular areas such as Gangnam (0.09%→0.15%), Seocho and Yongsan districts (0.13%→0.14%), and Jung district (0.11%→0.16%), as well as in non-regulated areas along the Han River belt like Seongdong (0.20%→0.27%), Gwangjin (0.14%→0.20%), and Mapo districts (0.12%→0.17%).

This week's Seoul apartment prices rose by 0.09%, higher than the previous week's (0.08%), marking an expansion in the rate of increase for the first time in five weeks, according to the Korea Land & Housing Institute.

Regionally, the supply indices for all five sectors increased compared to last week. The Central district, which includes Jongno, Jung, and Yongsan districts, recorded the highest supply index at 104.3, followed by the Southwest region, including Yangcheon, Yeongdeungpo, and Dongjak districts, at 102.7.

The Southeast region, comprising the Gangnam 3 districts and Gangdong district, recorded 102.0, and the Northwest region, including Mapo, Seodaemun, and Eunpyeong districts, recorded 101.4.

The Northeast region remained below 100 for the only one of the five major regions, at 99.5. Despite an increase in new record-high sales of apartments along the Han River in Seongdong and Gwangjin districts, the recovery in buyer sentiment for mid- to low-priced apartments in areas like Nowon, Dobong, and Gangbuk districts was relatively slower.

A real estate agent in Ahyeon-dong, Mapo-gu, stated, "After the June 27 measures, the sales market was quiet for a while, but inquiries and transactions have been increasing since August. For units under 85㎡, we've even seen transactions at new record highs, so prices are likely to remain strong for the time being."