Real estate agencies in Seoul and neighboring cities decrease

The number of real estate agencies in Seoul and adjacent areas has decreased 6.8 percent since President Lee Myung-bak took office in February 2008, due to the sluggish real estate market, Budongsan Serve, a real estate information provider, reported Dec. 3.

Analysts said that people are unwilling to buy homes amid a prolonged property market slump.

A recent survey conducted by the Korea Housing Institute said it was difficult to anticipate any recovery in home prices mainly due to increased household debts.

The number of real estate agencies in Seoul and neighboring cities totaled 51,642 in the third quarter of this year, a decrease from 55,406 in 2008.

On the other hand, the number of real estate agencies in provincial areas soared 17.3 percent from 27,198 to 31,911 during the same period, the report said.

Analysts attributed the increase to projects to develop "corporate" towns and "innovative" cities across the country, and an administrative town in Sejong City, South Chungcheong Province.

The real estate market in Seoul and its vicinity has already been saturated, they added.

Park Sae-jin swatchsjp@ajunews.com