Housing market in S. Korea freezes with Seoul's apartment sales hitting 31-month low
Updated: 2021-12-03 17:03:36 KST
A real-estate agent in Seoul's Eungam-dong says he hasn't seen a potential buyer in days.
In the neighborhood he operates in, there are plenty of people wanting to sell, but only one home was sold in October.
The realtor says, the market is literally freezing up.
"I'm almost at the stage of giving up. Some real-estate agents are considering shutting down their businesses and some already have."
Last month, some 8,1-hundred-50 houses were sold in the whole country, including both high and low rise apartment units.
That's a drop of 15 percent from a month earlier, and 23 percent from the previous year.
The decrease is most apparent in high rise apartment unit sales.
According to a government website, the total apartment sales in October dropped down to 23-hundred units, the lowest since March 2019.
At the same time, the price hikes are slowing down.
The size of price increases of apartment units in Seoul has been getting smaller for the past six weeks.
And the nationwide rate of price increases has returned to around where it was a year ago.
Experts say that, the government's recent crackdown on rising household debt, and the recent interest rate hike, have further discouraged buyers.
"The increase of the key interest rate and the property tax discouraged buyers while the price of apartment units had already been rising for too long."
Analysts say that people are waiting to see what the next administration does, and that housing prices are bound to fall, although it will take some time before the market gains stability.
Kim Sung-min, Arirang News.