[Real Estate] Is Seoul on the eve of a real estate storm?

*This content was translated by AI.

Before a tsunami rushes in, the beach temporarily experiences a receding tide.

Seoul apartment transaction prices recorded a -0.03% change compared to the previous period, a different trend from the previously stable upward movement. This is particularly significant given that the data emerged after the Democratic Party failed to retake Seoul in the local elections.

The guiding principle of the Lee Jae-myung administration can be summarized in nine words: "real estate stability, stock market stimulation." However, with Oh Se-hoon elected as Seoul Mayor, it is predicted that the Lee Jae-myung administration's policy direction will collapse. South Korea's capital market has seen continuous battles between the real estate faction and the securities faction. Since the 21st century, the securities faction has been soundly defeated by the real estate faction. Since last year, the securities faction has gained momentum thanks to the Lee Jae-myung administration's stock market stimulation policies. However, with the confirmation of Oh Se-hoon, the mayor who is evaluated as "pro-real estate," securing his fifth term, it is observed that he has become a major variable.

According to data from Real Estate 114, national apartment transaction prices for the first week of June rose by 0.09%. While Seoul temporarily fell (-0.03%), Gyeonggi and Incheon regions rose by 0.18%, resulting in a 0.06% fluctuation rate for the entire Seoul Capital Area. In non-capital areas, the five major metropolitan cities recorded 0.18%, and other local areas recorded 0.14%. Based on the 17th provinces and cities nationwide, 13 areas saw increases and 4 saw decreases, with rising areas prevailing.

By region, notable increases were seen in Sejong (0.39%), Jeollanam-do (0.34%), Daejeon (0.27%), Gyeonggi (0.21%), and Daegu (0.20%).

National apartment rental prices for the first week of June rose by 0.09%. Seoul rose 0.13%, Gyeonggi and Incheon 0.08%, and the Seoul Capital Area 0.10%. The five major metropolitan cities and other local areas rose by 0.02% and 0.10%, respectively. Similar to transaction prices, based on the 17th provinces and cities nationwide, 13 areas saw increases and 4 saw decreases, with an upward trend being prominent.

A real estate industry expert who spoke with this newspaper by phone stated, "Real estate is expected to show an upward trend in the future. With Oh Se-hoon elected as Seoul Mayor in the the 3rd local elections, a supply plan of 310,000 units led by redevelopment and reconstruction is expected to gain momentum." He also added, "Construction companies that postponed sales launch dates ahead of the the 3rd local elections will begin to flood the market with inventory immediately after the local elections conclude. In particular, the fact that most stocks in the Jeonju stock market fell, excluding some high-quality stocks, needs to be closely watched."

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*This content was translated by AI.