Investment Daily

Apartment price index slows on seasonality and Nov 3 measures: Accordingto the Korea Appraisal Board, the nation’s apartment price index rose 0.038% w-w lastweek. Growth lost momentum for a fourth straight week (after peaking at 0.083% w-w inthe third week of October) due to seasonality and the market’s wait-and-see approachfollowing the Nov 3 announcement of real estate measures. Reconstruction apartmentsfelt the brunt of the new regulations, their price declines widening to 0.15% w-w. Pricesfell more sharply of those in areas directly affected by the Nov 3 measures (eg, they fell0.64% w-w in Seoul’s Songpa district).

    Housing transactions up 2.2% y-y and 18.5% m-m in October: According to theMinistry of Land, Infrastructure and Transport, nationwide housing transaction volumein October rose 2.2% y-y and 18.5% m-m to 108,601 units. The y-y growth was slow on anabsence of base effect—the figure was somewhat higher in August-September thanks to alow base—while the m-m number spiked due to fewer business days because of theChuseok holidays. Transaction volume for the month was solid, beating marketexpectations amid collective loan guarantee regulations. That said, given effects of theNov 3 measures and seasonally low demand, transactions may weaken slightly inNovember.