Seoul’s recent decision to lift certain land transaction approval zones has caused a ripple effect in the property market, driving a slight increase in apartment (APT) prices across the country. This change has particularly impacted the greater Seoul area, with Seoul itself experiencing a 0.04% increase in apartment prices, while the surrounding regions saw a modest uptick of 0.02%. Nationally, APT prices rose by 0.01% during the second week of February, with notable growth in areas like Chungbuk, Chungnam, and Jeonbuk.
The lifting of the approval zones—some of which had been in place since 2020—has stirred optimism in the market. Areas affected by this change, such as Seoul’s Jamsil and Gangnam districts, have experienced heightened demand, especially as previously restricted properties in these locations are now available for sale without residency restrictions. This has led to an increase in transactions, with buyers eager to secure properties before prices rise further.
However, despite the increased demand, the influx of listings as homeowners look to sell has created some tension. Although buyers are keen to make moves, many are hesitant to accept contracts for properties whose prices have surged by several hundred million won, causing a bit of a market slowdown in terms of actual contract closures.
In the rental market, most regions have seen minimal changes, with national APT rental prices remaining flat across the board. Only Incheon and Busan saw slight increases of 0.01%.
Overall, while the lifting of land restrictions in Seoul has given the property market a slight boost, the future of the market remains uncertain as both demand and supply continue to fluctuate.
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