Ha-soo Kim, Gounee Yang

Global Economic News

THE actual transaction prices of apartments in Seoul fell for the first time in a year and a half last month, as housing demand in the city hit a new low due to soaring housing prices and tightening loan regulations.

According to the Korea Real Estate Board, the fluctuation rate of apartment housing index in Seoul was -0.46 percent (provisional figure) in October, turning down to the negative from 1.52 percent in September.

If the rate in October is confirmed to be “negative,” it will turn to the negative for the first time in a year and a half since -0.86 percent in April last year. The fluctuation rate of the Seoul apartment’s actual transaction price index was 2.03 percent in July, 1.84 percent in August, and 1.52 percent in September, showing a clear trend of decline for the past three consecutive months.

An official from the Korea Real Estate Board said: “Seoul’s rate has decreased for three consecutive months in the third quarter. And in October, only half of the transactions have been reported, but it is likely to be negative. Based on statistics, it is true that the market is changing little by little.”

The actual transaction of apartment index is considered a relatively accurate data because it only reflects the actually reported transactions. The index calculates all actual transaction prices reported to the local government on a contract date.