Overall, apartment prices on the island either held steady or retreated a bit last year, but it really depends on the specific neighborhood you’re looking at. Prices continued to rise in some communities. Joseph Kim reports. Report
Apartment complexes in (노형) Nohyeong and (연동) Yeondong have more than 5,000 units.
A number of mansions there priced between 500 and 700 million won are awaiting new owners.
[slug] Fewer apartment sales
Over the last few years, apartment transactions have been at a blustery pace.
But transactions have been rare since last year.
Recording Yang In-shik / Real estate agent Apartment prices had risen by 100 million won over two to three years. There were only a limited number of apartment sales last year and early this year. Prices for many have dropped. <씽크:양인식/공인중개사> "2,3년 사이에 1억 정도 오르다보니 작년과 올해는 거래량이나 가격에서 일부 단지는 그래도 유지돼 있고 대다수 단지는 가격이 내린 편입니다."
The number of apartment units bought and sold is decreasing. About 5,000 apartment units changed hands in 2015 and 3,000 units last year.
Apartment prices soared 14 percent three years ago.
But the price growth rate has plunged in those 3 years and reached 0.4 percent last year.
Only Jeju and (부산) Busan showed a drop of the apartment price growth rate in the nation last year.
The growth rate of market prices of apartments had exceeded the inflation rate for 5 years until 2016.
The market price dropped last year for the first time in 5 years, if the inflation rate is considered.
[slug] Apartment market prices slide 1%
Specialists say that the decrease in investment by non-islanders, the rise in the mortgage interest rate and oversupply in some areas have contributed to the slowing apartment price growth.
Recording Jeon Yong-gi / Representative, Korea Appraisal Board Drop in earnings from leasing a unit and tightened regulations on loans have led to lower investments in housing. The apartment market has been restructured by the needs of end users. These factors have slowed price growth. <씽크:전용기/한국감정원 제주지사 부장> "전월세 전환에 따른 임대수익 감소, 대출 규제 강화로 투자 수요가 감소하고 실수요자 위주로 시장이 재편되면서 공동주택 가격 상승폭이 둔화됐습니다."
However, as the population is growing every year on the island and apartments are in short supply overall, the prices are not expected to drop significantly any time soon.
[Reporter] Joseph Kim [Camera] Moon Ho-seong
The neighborhood of the Jeju Global Education City is still much in demand and the apartment prices are growing there.
Price trend of apartment units is different by region on the island.
