Seoul Housing Supply Tightens Sharply

1. What’s Happening
   Apartment listings in Seoul have fallen significantly since October, with supply dropping faster than normal for this time of year. Smaller apartments, preferred by many buyers, are disappearing most quickly. Despite reduced supply, some properties continue to sell at high prices. These movements suggest supply and demand are becoming unbalanced again after recent policy measures.

2. What It Means
   A tight supply reduces downward pressure on prices, meaning the risk of price declines in the short term is lower than expected. Sellers appear to hold homes rather than list them, signaling confidence in future prices and potentially squeezing buyers, especially first-time and young households. For the economy, this can influence consumer confidence and household spending patterns, as housing wealth remains a significant component of Korean household portfolios.

3. Watch Points

• Listing Trends into Spring: If supply continues to lag into the normally active spring market, price pressure may rise further.

• Mortgage Demand: Changes in borrowing patterns among first-time buyers could indicate shifting affordability or confidence.

• Policy Responses: New government or central bank actions affecting supply, credit, or tax incentives will shape market direction.

Source
AsiaEconomy. (2025, December 12). “매물이 없다”…대책 약발 떨어지자 꿈틀대는 매수 시장. Retrieved from https://view.asiae.co.kr/article/2025121210020166480 아시아경제