"I Can’t Even Cut 10 Million Won"...Why Some Listings Are Still Holding Out

[The Financial News] "I came by thinking prices had fallen...."
The number of apartment listings in Seoul has jumped by more than 20% in just one month, yet many sellers are still holding firm on their asking prices. Aside from a handful of urgent sales, there has been little price adjustment. In particular, asking prices remain high for listings from single-homeowners who are looking to trade up to better locations.
According to real estate platform Asil on the 3rd, an 84-square-meter unit at Byeoksan Apartment Complex in Geumho-dong, Seongdong District, changed hands last month for 1.7 billion won. However, current asking prices for similar listings range from 1.88 billion to 2.1 billion won. That is a difference of up to 400 million won for units in the same complex with the same floor area. An 84-square-meter unit at Seoul Forest Riverview Xi recently sold for 2.62 billion won, but current asking prices go up to 3 billion won. For buyers who expected lower prices based on recent transaction data, the gap can feel substantial.
These price differences within the same complex are seen as the result of listings from both multi-homeowners and single-homeowners coming onto the market at the same time. Multi-homeowners, who are under pressure to sell quickly, are cutting prices. By contrast, single-homeowners aiming to move to higher-end areas are listing their homes at the highest prices they think the market might bear.
A staff member at a real estate agency in Gangnam District said, "Some properties owned by multi-homeowners are being discounted by hundreds of millions of won, but even trimming 10 million won from a single-homeowner listing is not easy." The person added, "Because they want to secure as much capital as possible from the sale, they see no reason to rush into price cuts." The agent also noted, "Many potential buyers are standing on the sidelines, waiting for further adjustments, so deals are closing more slowly and selectively than people might expect."
As of this day, there were 71,025 apartment sale listings in Seoul, up 22.7% from 57,850 a month earlier. All 25 districts of Seoul saw an increase in listings. Seongdong District recorded the sharpest rise at 50.5%, while even Dobong District, which had the smallest increase, was up 5.5%. As more properties come onto the market in prime areas such as Gangnam, Seocho District, and Songpa District, the phase of rising listings is spreading across the entire city.
en1302@fnnews.com Jang In-seo Reporter