Daily Reports
The global real estate market is presenting conflicting signals. In France, while notaries report a consistent and accelerating decrease in property prices for the first quarter, slight rate cuts and the return of some buyers have prompted a modest uptick in certain areas. However, experts like Henry Buzy-Cazaux, president of the Institute of Real Estate Services Management, caution against premature optimism, emphasizing that these signs are not indicative of a broader recovery.
Particularly affected are high-end properties, where owners are reluctant to adjust their prices to current market conditions. Julien Haussy, the founder of Espaces Atypicals, notes that only the most pragmatic sellers or those in urgent need are making significant price reductions of up to 20%.
Contrasting this trend, the real estate market in South Korea is experiencing a surge, especially in Seoul and its surrounding regions. According to data released by the Korea Real Estate Board, nationwide apartment sales prices saw a 0.1% increase in the first week of June, mirroring the rise from the previous week. Seoul specifically saw a 0.09% increase, with areas like Seongdong-gu and Jongno-gu showing notable price hikes.
Gyeonggi Province, adjacent to Seoul, marked its first price increase in 27 weeks, driven by anticipation of new town reconstructions and the selection of leading districts for development. Despite this, other local areas in South Korea are still facing a downturn, with notable declines in the five major metropolitan cities and Sejong.
A concerning aspect driving Seoul's market is the persistent rise in rental prices, now climbing for 55 consecutive weeks. This upward trend is fueled by a supply-demand mismatch, exacerbated by a shortage of new constructions and high-demand areas near transportation hubs and large complexes.
These contrasting real estate scenarios highlight the nuanced and fragmented nature of the global property market, with regions experiencing vastly different trends based on local economic conditions and market demands.
- In France, market experts suggest that further adjustments in property prices are necessary for a more stable recovery. The reluctance of high-end property owners to lower prices continues to pose challenges for sustained market improvement.
- South Korea's real estate market is buoyed by expectations of redevelopment projects and new urban developments, which are driving buyer interest and sales in specific districts. The rise in rental prices, particularly in Seoul, underscores the need for increased housing supply to meet growing demand.
