According to the Korea Appraisal Board, Seoul’s weekly apartment supply-demand index stood at 73.2 as of Feb. 11, the lowest since March 11, 2013, when the index hit a record-low of 71.8.
The index, referring to the ratio of apartments available for transactions, is measured on a scale of zero to 200. While 100 indicates neutral status, a figure closer to zero means a declining market in which supply exceeds demand.
Seoul’s index had climbed to 116.3 in early September last year, amid soaring demand for apartments, but it saw a downturn upon the government’s announcement of Sept. 13 real estate regulations last year.
“In the wake of the Sept. 13 measures, prospective consumers withdrew their purchasing plans, while house owners put their estates up for urgent sale due to reinforced loan and tax restrictions,” said an official of the KAB.
The lowered market sentiment has led to an actual fall in apartment transactions so far this year. According to the Seoul Metropolitan Government’s real estate information center, the trade volume of apartments in the capital city reached 1,877 in January, the lowest monthly figure since 2013.
By Bae Hyun-jung (email@example.com)