Nowon-gu Real estate Market Stalls as New Lending Rules Curb Investment
Seoul, South Korea – A sharp decline in homebuying sentiment is gripping the Nowon-gu district of Seoul following the implementation of the October 15th real estate measures, leaving even licensed real estate agents facing dwindling activity. The restrictions, designed to cool the market, are particularly impacting areas reliant on loan financing, with transaction volumes plummeting and asking prices meeting resistance.
Recent data from the Ministry of Land,Infrastructure and transport illustrates the shift. A 59㎡ unit in Sanggye Jugong Complex 6, Sanggye-dong, Nowon-gu, sold for 675 million won on November 22nd – a 50 million won increase from a transaction on October 27th. However, after sellers raised asking prices to 750 million won for the same unit type, purchase inquiries reportedly ceased.
The slowdown extends beyond individual units. Sanggye Jugong Complex 7 in Sanggye-dong recorded only one transaction in November, a important drop from peak activity last September. On-site reports indicate a nearly 20% decrease in transactions since the end of last month.
Industry analysts suggest the October 15th measures spurred demand for “smart houses” – smaller, more affordable units – while simultaneously slowing transactions in areas like Nowon-gu, which historically attracted buyers seeking larger apartments and redevelopment potential. Increased uncertainty surrounding future loan regulations is further complicating matters.
“There is also a possibility of polarization between Nodogang and Geumgwan-gu,” notes Ham Young-jin, head of Woori Bank’s Real Estate Research Lab. He observes that despite abundant market liquidity, concerns are rising about a potential decrease in move-ins next year, coupled with anticipated increases in jeonse (deposit-based lease) prices. “The trend of preference for ‘smart one-house’ is not going away easily.It is highly likely that this trend will continue for the time being.”
Ham cautions that goverment policies, housing supply, and broader economic fluctuations will continue to influence the market’s trajectory. He adds, “Depending on the rate of change in rental prices next year, it will be different whether demand will flow into Nodogang and Geumgwan-gu or whether the trend of polarization will continue.”
