Real Estate Weekly:Seoul transactions solid in July

Seoul reconstruction prices down since June, but other types solid:According to real estate portal r114, prices for reconstructed apartments in Seoul rose0.22% last week, down steadily since jumping 0.61% during the first week of June. Weattribute the slowdown to a government regulation limiting group-loan guarantees thatwent into effect on Jul 1, which apparently hit sentiment in city’s affluent southerndistricts, where numerous high-value apartments (ie, priced at KRW900m and up) wereoffered for presale. All other apartment prices in the city stayed solid for the week.。

    Seoul apartment transactions solid, despite group-loan regulations: r114also reported that Seoul’s apartment transaction volume rose 11.8% m-m (and 1.8% y-y)to 11,974 units in June, with government data showing that 10,456 apartments in the citychanged hands over Jul 1-22. This shows growth of 14.1% y-y and 154% on the five-yearaverage figure for Junes if adjusted for the full month, showing little impact from thegroup-loan regulations (even if it slowed growth in reconstruction prices), with someapparently viewing the measure as a buying opportunity.