"The real estate market is considered a bear market."
The number of people who stopped investing is increasing.
As the apartment transaction cliff continues, the number of 'away investments' that purchase real estate in other regions is also decreasing.The photo shows a panoramic view of an apartment in Chuncheon, Gangwon Province.[Photo source = Yonhap News Agency]
According to the Korea Real Estate Agency's apartment sales transaction status by buyer's residence on the 14th, 25.5% of the 21,836 transactions were made by residents of other cities and provinces in July this year.This is the lowest figure in a year and eight months since November 2020.It has also been on the decline for three consecutive months since April (30.6%).Even if the scope is expanded to the entire house, including apartments, the proportion of foreign purchases in July is 28.3%, which is also the lowest since November 2020.
The absolute volume of transactions itself declined even more.In May, the number of apartment transactions for outsiders decreased from 19,911 to 5,576, which is half the number in July.Analysts say that if it was a time when the price increase at the beginning of this year, when the apartment transaction cliff began, the number of people who withdrew from investment has increased significantly, judging that it was a clear decline in recent years.
In September last year, which was evaluated as the peak of the surge in apartment prices, the proportion of foreign purchases reached 33.8% and the volume of transactions reached 18,651.In nine months, the share of purchases decreased by 8.3 percentage points, and trading volume fell to less than a third.
On the other hand, the proportion of residents in other regions buying apartments in Seoul remains similar.In July, 21.1% of residents in other regions invested in the expedition to Seoul, but in April, May, and June, 21.4%, 21.8%, and 19.6%, respectively.
As Seoul is evaluated as a top market, it is analyzed that it reflects expectations that the decline will not be significant even during the recession.However, considering that there is a higher demand for entry than other regions in Seoul, it seems that the actual purchase for residential purposes also accounted for a considerable number.
Experts predicted that the market slump would be prolonged considering additional interest rate hikes.Park Hap-soo, an adjunct professor at Konkuk University's Graduate School of Real Estate, said, "The proportion of foreign purchases is an indicator of investment demand, but interest rate hikes are ongoing and uncertain," adding, "We will have to go at least the first half of next year."
Ko Jong-wan, head of the Korea Asset Management Institute, said, "The decline in foreign buying is expected to continue for a while because it is very difficult to determine when the low point is."
[Reporter Lee Seokhee]
[Maeil Economy & mk.co.kr]
