Interest rates increase the number of landlords who sell back within a year
1 in 10 people 1 year, 1 in 4 3 years imprisonment
“As the cost of holding increases, the choice of disposal will increase”
The rate of disposal of real estate in Ulsan in the short term is increasing. As house prices have weakened in the aftermath of the recent interest rate hike and the interest burden on loans has increased, more and more homeowners are buying apartments and officetels and selling them back within a year.
According to the court registration information plaza and the real estate platform company Jikbang on the 18th, the percentage of sellers who have owned the Ulsan collective building for less than a year was 9% in the second quarter of this year (April to June).
An aggregation building refers to an apartment, a row house, a multi-family house, an officetel, etc. that can be the subject of separate ownership because structurally separated parts of a building can be used independently.
Of the 3,418 total sellers, the number of sellers who sold within one year was 308.
In Ulsan, the proportion of sellers who own a collective building for less than a year increased by 3.7%p from 5.3% (169 out of 3,193 people) in the first quarter of this year. About 1 in 10 people bought real estate and sold it within one year, which is the very shortest period.
It is analyzed that the number of cases of buying a house with borrowed money and then selling it back within one year because they could not afford the high interest due to the aftermath of an interest rate hike has increased.
The ratio of those who sold within three years also increased from 19.5% in the first quarter of this year to 25.6% in the second quarter of this year. One in four sellers sold the property within three years.
Nationwide, the proportion of sellers with a holding period of less than a year increased from 8.49% in the first quarter of this year to 9.92% in the second quarter. The rate of sales within three years was 26.13% in the second quarter of this year, showing an increase since the third quarter of last year.
Ham Young-jin, head of Big Data Lab, said, “The rise in short-term holders’ selling ratio is a large part of the burden of loans. The pressure must have increased.”
“If macroeconomic issues such as inflation and economic slowdown are combined with additional interest rate hikes, it is difficult for the real estate transaction market to regain vitality for the time being,” said Ham. The number of sellers who do so will continue to increase,” he predicted.
Meanwhile, in the first half of this year (January to June), the number of buyers who purchased a collective building for the first time in Ulsan was 3,052, down 33.1% (1,509) from the first half of last year (4,561).
In the first half of this year, the number of first-time buyers of collective buildings was 168,713 nationwide. This is the lowest interest rate in 10 years since 2012 (161,744 people) as of the first half of the year, and the second lowest since 2010 when statistics related to interest were collected.
2012, when the number of first-time buyers of collective buildings in history was the lowest, was a time when the house poor crisis was in full swing. House poor refers to a household that owns a house but suffers from the burden of repayment of principal and interest due to a loan.
As house prices turned weak and the interest burden increased due to the effect of the key interest rate rise five times since August last year, some are raising concerns that the 2012 house poor situation will be repeated for the first time in 10 years.
Reporter Kim Ji-eun
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