Seoul real estate sentiment hits one-year high amid rising listings

Real estate consumer sentiment in Seoul has reached its highest level in a year, driven by a shift from rental demand to home ownership. According to the July survey by the Korea Research Institute for Human Settlements, the housing market index for Seoul hit 139.9, reflecting strong expectations for rising sales prices.

While sales sentiment has surged, rental (jeonse) sentiment has declined. Analysts suggest that fatigue from prolonged high rental costs is prompting actual users to transition into the purchase market. In Seoul, rental sentiment dropped by 2.0 points, even as rental prices in certain districts have seen significant increases.

Simultaneously, apartment listings in high-value areas such as Gangnam and Yongsan have increased by over 10% in the last two weeks. This surge in supply is attributed to anticipated increases in holding taxes following government tax reform announcements. In Gangnam-gu, listings rose by 10.5%, while Yongsan-gu saw an 11.1% increase. Despite the rise in sales listings, rental availability in some areas, such as Songpa-gu, has decreased, indicating a complex shift in market dynamics.