As intense loan regulations and pressure to raise interest rates intensify, small and low-priced apartments are leading the market.
According to the statistics of the Korea Real Estate Agency, out of 7,917 apartment sales in Seoul between January and May of this year, the proportion of sales of less than 40 square meters was counted at 22.0% (1,741 cases).
This is the first time this year that the proportion of apartment sales in this area has exceeded 20%.
This is the highest level from January to May since 2006 when the Real Estate Agency started collecting related statistics, and it is a figure that has risen by nearly 10 percentage points (p) compared to last year (12.6%).
This year, one-fifth of apartment sales in Seoul are small apartments of 40 square meters or less.
Jungnang-gu (43.0%) had the highest share of sales of apartments under 40 square meters in 25 districts of Seoul, followed by Jongno-gu (37.1%), Jung-gu (36.4%), Yeongdeungpo-gu (33.7%), Gwanak-gu (29.4%), and Gangdong-gu (29.4%). 28.7%) and so on.
If the scope is expanded to less than 60 m² for apartments, which is the standard for small-sized apartments, the proportion of sales until May of this year is 51.5%, which is the second highest level since 2007 (55.0%).
As strong loan regulations and interest rate hikes continue, transactions appear to have been focused on small, low-cost apartments with relatively low financial burdens.
The share of low-priced apartments under 600 million won, which can receive a low-interest home mortgage loan, also reached the highest level.
According to the real transaction price disclosure system of the Ministry of Land, Infrastructure and Transport, 857 cases of apartment sales in Seoul were registered last month, of which 394 cases (45.9%) were transactions of less than 600 million won.
Small apartments are leading the market not only in the sales market but also in the subscription market.
As a result of analysis of the Korea Real Estate Agency subscription home data by Real Today, a real estate research company, the first-order competition rate for small apartments under 60 square meters for exclusive use was 27.3 to 1 in the first half of this year (January to June), compared to the first half of last year (9.6 to 1). It was three times higher.
A Real Today representative said, "Recently, there is an atmosphere of interest in small apartments as there is an investment demand due to the expectation of the benefits of the rental business."
(Photo = Yonhap News)