New disclosures aim to reduce market confusion caused by extended reporting periods and information gaps
Seoul Metropolitan Government announced on the 18th that it will disclose real transaction-based housing market information monthly starting this month to address the information gap in the real estate market.
The city stated, “Previously, it took up to 30 days from the signing of a sales contract to the reporting of the actual transaction, but due to the October 15 measures, the process of obtaining land transaction permits before contract signing has been added, extending the reporting period to up to 50 days. This has led to an information gap and a sharp decline in transaction volume, causing a ‘distortion effect’ that has intensified market confusion.”
According to information disclosed by Seoul Metropolitan Government, 9,935 applications for land transaction permits for Seoul apartments were received between October and December of last year, of which 7,777 cases (78.3%) were processed. By month, the prices of land transaction permit applications from October 20 to November rose by 1.49% compared to the actual transaction prices in October, and the prices of applications in December increased by 1.58% compared to the previous month, showing an expanding upward trend.
The city plans to extract and compile the Korea Real Estate Board’s ‘Apartment Actual Transaction Price Index,’ a nationally approved statistic, focusing on Seoul apartments, and provide it as monthly press releases. The actual transaction price index is calculated based on reported transaction prices, reflecting the market’s actual trends more accurately than indices based on surveyor evaluations or asking prices. It is particularly effective in quickly reflecting contract changes during price fluctuations, resulting in high relatability.
Market analysis data based on actual transaction prices will also be provided. In November of last year, the actual transaction prices of Seoul apartments rose by 1.28% compared to the previous month and increased by 12.95% compared to the same month of the previous year. The downtown area (Jongno, Jung, and Yongsan districts) and the southeastern area (Seocho, Gangnam, Songpa, and Gangdong districts) led the upward trend, rising by 3.46% and 1.82%, respectively.
In November, jeonse (lump-sum deposit) prices for apartments in all five living zones in Seoul increased, rising by 0.94% overall. The southwestern zone recorded the highest increase at 1.09% compared to the previous month.
Additionally, the city plans to analyze market trends by living zone, size, and building age based on actual transaction prices and disclose them on the ‘Seoul Housing Information Plaza’ at the end of each month.
Choi Jin-seok, the Seoul Metropolitan Government’s Housing Director, said, “We will continue to provide accurate market information based on actual transactions to alleviate excessive anxiety or vague expectations in the real estate market and help citizens make rational decisions.”
