[Anchor]

Even as apartment transactions in Seoul decline, housing prices have continued to rise for the 82nd consecutive week. While strengthened loan regulations have lowered overall purchasing power, demand remains concentrated around relatively affordable mid-to-low-priced apartments.

Reporter Lee Seong-hoon has the story.

[Reporter]

This is an apartment complex in Sanggye-dong, Nowon-gu, Seoul.

It is a large complex with around 2,800 households, and local agents report that transactions have noticeably decreased recently.

[Kim Kyung-sook / Real Estate Agent in Nowon-gu, Seoul: Transactions surged when the grace period for heavy capital gains taxes was set to end. Now, there are not many properties left at those increased prices.]

Total apartment transactions in Seoul rose to about 8,900 in May, driven by the overlapping end of the capital gains tax grace period, before dropping to the 5,000 range in June and July. Last month, based on current reported figures, transactions fell to about 2,600.

Although trading activity has significantly shrunk, apartment prices in Seoul have continued to rise for 82 weeks in a row.

Last week, Seoul apartment prices rose by 0.22%, with outer districts such as Seongbuk-gu, Jungnang-gu, and Nowon-gu showing large gains.

This contrasts with Gangnam-gu and Seocho-gu, where prices have been falling for four consecutive weeks.

Looking at the proportion of transactions by price range, the share of homes priced at 900 million won or less increased from 47% in January of this year to 54% last month, while the share of transactions exceeding 1.5 billion won decreased from 21% to 19%produ.

Because demand for mid-to-low-priced apartments remains and properties are scarce, transactions are taking place even at higher prices.

Amid instability in the lease market caused by a shortage of jeonse (lump-sum housing deposit lease) properties, demand to switch to homeownership is also flowing into mid-to-low-priced apartments.

[Ham Young-jin / Head of Woori Bank Real Estate Research Lab: Although interest rates are rising and loans are being regulated, housing demand cannot be said to be lower than in the past. Because the lease market is unstable, prices do not easily fall despite low transaction volumes, and a situation where they trend upward can occur.]

The finalized details of the tax code revision submitted to the National Assembly, as well as whether and when additional interest rate hikes will occur, are expected to be major variables for future transaction trends.

(Video Editing: Choi Hye-ran, VJ: Jeong Han-wook)