Demand for homes in greater Seoul hits record high

입력 2021. 1. 25. 17:15 수정 2021. 1. 25. 17:23
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Apartment complexes in Seoul. (Yonhap)

Despite the South Korean government’s relentless efforts to curb soaring apartment prices, there seems to be no sign of demand letting up in Seoul and its surrounding cities, according to the Korea Appraisal Board on Monday.

The state-run property appraisal agency’s recent report showed the home-buying sentiment stood at 117.2, a record high since the relevant data started compilation in July 2012.

The index, based on a survey of the organization’s member realtors and analysis of property listings available online, shows the balance between supply and demand in the real estate sector. On a scale of 0 to 200, supply exceeds demand when the index is close to zero, and vice versa when the indicator nears 200. The index hitting 100 means that supply and demand reach equilibrium.

Gyeonggi Province and Incheon, in particular, saw their respective home-buying sentiment rise to 123.1 and 112.8 as home buyers began eyeing areas near and around Seoul due to toughened property regulations on the nation’s capital.

“Because of rising property prices and long-term, or jeonse, rents in Seoul, demand in the surrounding cities has been skyrocketing, turning the property market in the areas into a seller’s market,” a KAB official said.

The strong demand in the greater Seoul area has been spilling over into other metropolitan cities. The index in Busan, Daejeon, and Daegu, came in at 115.1, 116.5 and 120.4, respectively. With the rising demand for homes, the supply-demand index for the entire nation stood at 114.7, the highest on record.

By Kim Young-won (wone0102@heraldcorp.com)

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