Ocean View Attention Gangneung Housing Market ‘Fall Without Wings’

‘Real estate hot place’ Gangneung’s housing market is repeatedly falling without wings. Home sales volume in October was the lowest in 9 years and 9 months. There are also quick sales with lower asking prices.

Looking at the real estate transaction status of the Korea Real Estate Agency, the total number of housing sales including apartments in October was 161. This is the second lowest figure in the last 10 years, after January 2013 (129 cases).

Total housing sales in October more than doubled compared to the same month last year (377 cases). Looking at the cumulative volume (January-October), this year was 2810 cases, a sharp decrease of 1770 cases from the same period last year (4580 cases).

Housing sales maintained an average of 330 units until the first half of this year, but plummeted from July. There were 372 cases in June, 245 cases in July, 226 cases in August, 186 cases in September, and 161 cases in October.

Along with this, a total of 103 apartments were sold in October among housing units. Looking at the statistics for the last 10 years, it is the lowest since January 2013 (90 cases).

It is analyzed that the increase in interest rates in the banking sector, the increase in supply, and the wait-and-see attitude due to expectations of falling housing prices led to a decrease in transaction volume.

Due to the sharp decline in transaction volume, apartments for sale in the price range of one to two years ago, which are lower than the market price, are also appearing in the market across Gangneung one after another. The local real estate industry said, “Gangneung has become popular as an investment ‘hot place’ such as ‘second house’, and apartment prices have jumped in the past year or so. The downturn is expected to continue for some time,” he said.

Wooyeol Kim [email protected]

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