Is it a matter of deposit when you might lose billions? People cutting losses everywhere

[Financial News] After the 6·27 real estate measures, which limited the mortgage loan limit to 600 million won in the capital region, the proportion of canceled contracts for high-priced apartments exceeding 1 billion won surged by 8%p. This is evidence of weakened market buying sentiment.
On the 17th, real estate brokerage firm ZipToss analyzed the status of apartment sales cancellations in the capital region contracted until June 27. The analysis showed that the proportion of canceled contracts for apartments exceeding 1 billion won was 35.0% after the measures were announced, significantly higher than before the measures (26.9%). This indicates that even existing contract holders, who are not directly affected by loan regulations, are abandoning contracts due to concerns about future house price declines.
The shock of this measure was concentrated in the high-priced apartment market. The proportion of apartments under 500 million won among canceled contracts decreased from 32.2% before the announcement to 25.1%, while the proportion of apartments exceeding 1 billion won noticeably surged.
Because high-priced apartments involve large investment amounts, the potential loss is significant if prices fall in the future. Buyers are perceived to be feeling the psychological burden of having "caught the top" and are willing to forfeit their deposits.
In Seoul, an unusual situation occurred where regions at both extremes of the market were simultaneously affected.
In Seocho-gu, where high-priced apartments are concentrated, the proportion of canceled contracts increased about 2.3 times from 2.5% before the measures to 5.7%, and in Gangnam-gu, it increased from 5.1% to 6.5%. Concerns about asset value decline led to contract cancellations.
Simultaneously, Nowon-gu, which had many "all-in" purchases, also saw a significant increase in the proportion of canceled contracts from 5.3% to 7.3%, and similar trends were observed in Gangbuk-gu and Dobong-gu. This is analyzed to be due to buyers with insufficient capital rushing to cancel contracts due to fears of future house price declines and interest burden.
This analysis was conducted by comparing the proportion of specific price ranges and regions in the number of cancellations at each point in time, considering the data collection time lag due to the reporting deadline (30 days).
Lee Jae-yoon, CEO of ZipToss, analyzed, "This measure has thrown a strong signal to the market that 'house prices will be adjusted,' prompting asset defense psychology among high-priced apartment buyers and loss minimization psychology among 'all-in' buyers, leading to the same action of contract cancellation."


ming@fnnews.com Jeon Min-kyung Reporter