Do not go gentle into that good night, old age should burn and rave at close of day; Rage, rage against the dying of the light, though wise men at their end know dark is right, because their words had forked no lightning they, do not go gentle into that good night.
Have Seoul home prices hit rock bottom?
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By Jhoo Dong-chan
By Jhoo Dong-chan
The Seoul real estate market, particularly the apartment market, has continued on a downward spiral over the past several months but some market observers say that it is bottoming out as the real estate confidence index slightly recovered for the first time in five months.
A few apartments were also traded at higher prices than anticipated, raising expectations that home prices have finally hit rock bottom.
Market experts say, however, the recovery is likely temporary since it is now moving season and the downtrend will probably continue for a while.
According to the Korea Appraisal Board, Seoul home prices have been down for 23 consecutive weeks. The average Seoul apartment price was down 0.06 percent on April 15 from the previous week.
Home prices in the four Gangnam districts ― Gangnam-, Seocho-, Songpa- and Gangdong-gu were down 0.08 percent on the day, recovering a bit from its previous week's decline of 0.1 percent.
In the meantime, a high-rise Yongsan-gu apartment sold at a record high price in March. The apartment, located at the Yongsan City Park Complex near Hangangro 3-ga, was sold at 2.93 billion won ($2.54 million) last month, up 430 million won from its previous high of 2.5 billion won when it was sold in September.
The price of the Dongbu Cetreville apartment in Seocho-gu, which reached its peak at 1.47 billion won last year, also sold for a record high of 1.9 billion won last month.
Optimists claimed Seoul home prices have finally bottomed out, but experts said they're exaggerating the situation based on a few transactions in the Gangnam district.
“Those who really need a place to stay in the metropolitan area are still staying in the rent market,” said NH NongHyup Bank mortgage loan division manager Roh Joon.
“They still believe Seoul apartment prices are too high. I don't think they will come out to buy apartments unless the government eases its regulations on housing loans.”
The government has introduced a series of real estate measures aimed at curbing household borrowing, apartment prices and speculation especially in Seoul.
“The government is likely to continue its hawkish stance throughout the entire term,” said a domestic brokerage real estate researcher, asking not to be named.
“They also plan to supply new apartments in the metropolitan area. Seoul home prices are, thus, likely to continue slowing down throughout the year.
The government plans to supply new apartment buildings able to hold up to 50,000 households in Seoul by the end of the year to stabilize home prices.