Real Estate Prices Rise In spite of Tougher Curbs
28 June, 2020
Apartment prices in Gyeonggi Province and the port city of Incheon west of Seoul increased sharply following the government announced even more regulations to curb speculation on June 17.
Apartment prices continued to go up in areas which were either newly subject to tougher curbs on housing loans or face them soon, aswell as in parts which were not included.
Proponents of the government's measures to tame apartment prices said the brand new regulations will require time showing their effect, but critics said they experience simply backfired as prospective home buyers became nervous and bought fast.
Apartment prices in the Seoul metropolitan area rose 0.28 percent during the last week, the Korea Appraisal Board stated on Thursday. The federal government has so far released tougher regulations over 20 times, but paradoxically real estate prices soared whenever it does.
Apartment prices found in Seoul edged up 0.06 percent, that was similar to the prior week (up 0.07 percent). However in Gyeonggi Province they rose 0.39 percent and in Incheon 0.34 percent.
The average increase in the united states was 0.22 percent, the biggest-ever weekly rate of growth since May 2012.
The KAB said, "Apartment prices rose in some areas of the capital, but buyers' sentiment sharply contracted after the latest regulations." Basically, the impact of the new regulations offers yet to come to be fully reflected in the figures.
Shim Gyo-eon at Konkuk University also said, "Soaring demand ahead of the new regulations was probably reflected in the most recent figures. The surge in the capital region will ease relatively after they begin to take effect."
But property analyst Lee Sang-woo said, "There is ample liquidity available in the market, but following the tougher measures were announced, possible home buyers are beginning to wonder if this might be their previous chance to get an apartment, so we will have prices continue steadily to rise."
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