"Only those who can buy, do"... High-priced transactions halved after 6·27, prices rise only in Seoul

[Financial News] Since the government announced the '6·27 measures' containing strong loan regulations, the proportion of high-priced transactions over 1 billion won in the metropolitan area has been halved. However, the house prices in places where transactions were concluded have risen, leading to observations that the market is being reorganized into one where 'only those who can buy, do'.
According to the real estate brokerage firm Jiptos on the 17th, the proportion of apartments exceeding 1 billion won, which accounted for 23.9% of all apartment transactions in the metropolitan area before the announcement of the 6·27 measures, dropped to 12.1% after the measures.
However, the transaction prices of high-priced apartments showed an upward trend. The average sale price of apartments exceeding 1 billion won in the metropolitan area rose by 2.8%, recording a significantly higher increase than apartments below 500 million won (0.9%) and those between 500 million and 1 billion won (0.9%).
However, the rate of increase in house prices in Seoul and Gyeonggi-do within the metropolitan area showed different patterns. While apartments exceeding 1 billion won in Seoul surged by 3.6%, Gyeonggi-do only saw a 0.5% increase, and Incheon actually plummeted by 6.1%, showing stark regional differences within the metropolitan area.
Seoul's house price increase was driven by old apartments over 30 years old. Complexes over 30 years old surged by 7.3% after the measures, greatly surpassing the increase rate of new constructions (3.8%).
In fact, a series of record prices continue in the Apgujeong area of Gangnam-gu, Seoul, where a large-scale reconstruction project is underway. According to the Ministry of Land, Infrastructure and Transport's real transaction disclosure system, a 110㎡ 'Hanyang 7th' (Apgujeong 6th district) apartment in Apgujeong-dong, Gangnam-gu, Seoul, was sold for 5.3 billion won on the 1st. The previous transaction was 3.9 billion won on December 6 last year. It rose by 1.4 billion won in 7 months.
A 163㎡ 'Hyundai 8th' apartment in Apgujeong 4th district also set a new record at 8.3 billion won on the 8th. It recorded a '7.5 billion won record price' on the 19th of last month, but soared by 800 million won in just 3 weeks. A 63㎡ 'Hanyang 1st' apartment in Apgujeong 5th district was traded for 5.3 billion won on the 3rd, setting a new high. The previous transaction was on the 19th of last month, at 5.18 billion won.
Jiptos CEO Lee Jae-yoon analyzed, "While the buying trend for most apartments has weakened due to loan regulations, the demand with financial power is losing its place and is only flocking to certain investment destinations like reconstruction, maximizing the polarization phenomenon."
Meanwhile, Jiptos compared the average sale price change rate of the same complex and same size for 2,377 apartment complexes in the metropolitan area that had at least one brokerage transaction during the two periods △May 1~June 27 and △June 28~present, before the 6·27 measures.


ming@fnnews.com Jeon Min-kyung Reporter