Gangnam apartment declined for 28 weeks …

Gangnam apartment declined for 28 weeks … 8 · 2 countermeasure effect appears

The prices of apartments in Gangnam-gu and Seocho-gu, Seoul, designated speculative areas for August 2 real estate measures, fell for the first time since the beginning of this year. The price of apartments in Gangnam-gu has fallen by only 27 weeks on a weekly basis. In the real estate and financial industry, when the effects of the August 2 real estate measures become more visible, it is forecasted that the rise in apartment prices, which are designated speculative districts or speculative superheated districts, may slow down or fall all at once.

According to the housing market trend surveyed by Kookmin Bank on April 14, the average rate of increase in apartment sale price in Seoul was 0.05%. Compared to Jul. 31, which was 0.37% higher than Jeonju, and Aug. 7, which was 0.08% higher than Jul.

In Seoul, the increase in the selling price has slowed down overall, and attention has been focused on the change in the selling price of apartments in Seocho-gu and Gangnam-gu. In Seocho-gu and Gangnam-gu, respectively, the selling price was 0.01% lower than a week ago.

Apartment prices in Gangnam-gu compared to Jeonju fell only by 27 weeks after a 0.02% decline in the January 30th survey. Gangnam-gu has continued to increase since May 29, when apartment prices climbed 0.17%. It was up 0.38%, 0.27%, 0.23% and 0.22% throughout June. On Aug. 7, immediately after the announcement of the 8.2 real estate measures, the survey showed a 0.06% increase from the previous week. The uptrend was somewhat smaller and fell on the 14th survey. The drop in the selling price is not large, but it is a remarkable change considering the previous increase.

Seocho-gu also fell 0.01% after 27 weeks since January 30 (-0.01%).

In Gangbuk area, only the apartment of Nowong-gu designated as the speculative area fell down. On January 4, 2016, Nowon-gu turned downward after a one-year and eight-month period after selling prices fell 0.02% from the previous quarter. On June 12, one week before the announcement of June 19 measures, the selling price rose 0.58% from Jeonju. Even after the measures were announced, the rate of increase was 0.45% for two consecutive weeks, but the rise started to slow down from August 7.

In addition, in Seoul’s Seodaemun-gu, Seongdong-gu and Jongno-gu, it was trading at the same price level as Jeonju without any change in the rise. 
The price of the apartment in Sejong City, designated as speculative area, was traded at the same price for two consecutive weeks after the announcement of the August 2 real estate policy. Sejong City apartments were traded at a price 0.44% higher than that of Jeonju on June 5 prior to the measures taken before the June 19 measures, but after a slight downturn, the price increase rate on July 31 was 0.58%.

Meanwhile, the government plans to limit the rate of collateral recognition and total debt repayment to 40 percent of the base rate when lending to speculative areas and housing in speculative superheat districts as collateral.
Enter: 2017.08.21 14:00