In the first quarter of this year, the sale price of apartments in Seoul showed that the price is higher, the higher the price. More than 1,000 households, which ran the boom period, were hit by a fall, and the price of the housing market grew. In particular, many of the more than 1,000 households in Seoul have been reconstructed apartments, and the decline in investment demand seems to have led to a fall in house prices.
Real Estate 114 (vvv.r114.com) analyzed the change in the sale price of an apartment in Seoul by size in the first quarter of 2019, and the largest apartment with more than 1,000 households recorded the largest drop from -0.95%. There was less than 500-1,000 households (-0,30%) and less than 300-500 households (-0,09%). On the other hand, small complexes with less than 300 households increased by 0.17%. While large apartment prices, where prices have risen due to the boom period prosperity, adjusted for the recession period, small flats with fewer transactions are less affected by the economy.
In particular, in the case of apartments with more than 1,000 houses divided by the autonomous prefecture in Seoul, a downward trend is observed in areas where house prices have increased significantly last year. Sales prices fell in line with Gangnam-gu (-2.22%), Songpa-gu (-2.09%), Iangcheon-gu (-1.63%) and Gangdong-gu (-1.26%). The state of the purchasing builder has been reduced due to lending regulations and the economic crisis, suggesting that apartments in four counties of Gangnam and Iangcheon-gu, which are in the phase of reconstruction, have led to a fall in house prices.
Residential complex has a constant demand thanks to an excellent residential environment, such as various facilities and amenities in the community. In particular, Seoul is a popular place for large-scale flats, and is also popular with investors due to its rare value. That is why the price level is so high that when it comes to a large apartment with more than 1,000 households, a positive qualification of the "economies of scale" comes in. However, it seems that the fall in prices is significant in the recession period when there was a fall in purchases. This is because the number of real estate is higher than the number of people living and the price is reduced. Therefore, if the recession is prolonged, the price of a large account will become more pronounced than the price of a small and medium complex. In particular, it is estimated that the fall in the price of apartments in which construction is active and investment in the gap, which have a low priority among the large ones, will be great.