Index signals Seoul property market gaining vitality

SEJONG -- Recent indices are signaling a possible vitalization of the real estate market later this year, with expectations growing over deregulations, which had been pledged by President-elect Yoon Suk-yeol.

A major property index showed Friday that the gap between the number of people, who want to purchase homes and those, who want to sell homes has somewhat narrowed. But the potential sellers still outnumbered potential buyers.

According to the Korea Real Estate Board, the index for trading of apartments in Seoul came to 87.5 this week, up 0.5 point from 87 a week earlier. The index recorded postive growth for the second consecutive week.

Though the index reading below 100 means home sellers outnumber home buyers, the index change in Seoul’s Gangnam district is hinting that more households were pinning hopes on deregulations involving feasible reconstruction and redevelopment of the coming Yoon administration.

The so-called Gangnam district -- composed of Seocho-gu, Gangnam-gu, Songpa-gu and Gangdong-gu -- recorded the highest growth among five major regions in the capital: by 0.8 point from 85.7 last week to 86.5 this week.

The northeastern region -- Gwangjin-gu, Seongdong-gu, Nowon-gu, Dobong-gu and Gangbuk-gu -- saw the index climb by 0.6 point to 86.5.

The index surpassed the 90 mark in the southwestern region -- Gangseo-gu, Yangcheon-gu, Guro-gu, Yeongdeungpo-gu, Dongjak-gu and Gwanak-gu -- from 89.7 to 90.1.

Increases were also seen in the downtown area of Jongno-gu, Jung-gu and Yongsan-gu to 85.9 and the northwestern area of Eunpyeong-gu, Seodaemun-gu and Mapo-gu to 86.8.

Gyeonggi Province, which surrounds Seoul, saw the index inch up 0.1 point to 91.2, while hopes are growing over reconstruction in high-density residential towns such as Goyang City’s Ilsan, Bucheon City’s Jungdong and Seongnam City’s Bundang.

The index for trading of homes nationwide also inched up 0.1 point to 92.8: while increases were seen in regions such as Busan, Ulsan, North Jeolla Province, South Jeolla Province and South Gyeongsang Province, a fall was reported in Incheon from 92.9 to 91.8.

By Kim Yon-se (kys@heraldcorp.com)