At the same time transactions have been cut off due to weak investment sentiment for real estate, the price of apartments in Seoul has been with the rise as another negative factor has been seen as a hike in official prices and the Seoul Metropolitan Government's announcement with a plan to renovate cities and buildings.
In particular, the city's urban and architectural innovation plan includes expanding public involvement in personalized maintenance projects, raising concerns that future projects will be put with hold. Due to this reason, prices seem to be further aligned, mainly focusing on reconstruction complexes in the early stages of the particular project.
According to Real Estate 114 on Monday, the rate for change in apartment prices in Seoul last week was -0. '08 percent, widening the decline from a week earlier. The figure is usually attributed to a 0. 22 percent drop in apartments to wind up being rebuilt in Seoul per week, raising the drop.
Recently, the Seoul Metropolitan Government announced an urban and architectural innovation plan that telephone calls for active involvement in all business processes of private readjustment, together with reconstruction, which has led to a continued fall in apartment selling prices for reconstruction in Seoul.
The city government's plan to renovate metropolitan areas and buildings announced on Wednesday calls for the city government to be able to first present key issues such as floor numbers and design previously the private sector draws an outline for reconstruction and redevelopment. The idea will also establish a pre-public planning stage before the establishment associated with the civilian maintenance plan, with the city planning committee of Seoul presenting "comprehensive guidelines" for each apartment complex.
The check here Seoul Metropolitan Govt said through the innovation plan that it will move away right from "hitting-gap apartments" and apply diverse and creative designs to the area environment, but some believe that the city government could violate the autonomy of the private sector as the city intervened from the particular start read here of the project. Moreover, the prospects for reconstruction are unstable go here as the city's excessive intervention and guidelines continue to point visit out and about that business feasibility will be undermined.
"In the click here face of often the unfavorable market, the price of the first rose apartment in Sincheon-dong, an initial reconstruction complex, has already fallen by 45 million achieved to 100 million won, " said Kim Eun-jin, head of the exact real estate 114.
Analysts say that with the planned price of apartments announced, there will be a lot of concerns for multiple homeowners who are at the crossroads of holding and selling homes, or for those who own multiple houses for investment purposes.
"The impact of the market will be eased a bit as the particular price for the planned public announcement of the joint house is definitely set to be similar to last year's increase rate, " they said. "There is a possibility that housing disposal will increase seeing that jeonse prices fall and the burden of holding taxes increases. inches Pressure to lower housing prices is expected to increase, mainly during areas where demand for gap investment has been concentrated and wheresoever the company is struggling due to oversupply of housing products, very well he predicted.
Yang Ji-young, director of R