Korea Real Estate Board December Housing Price Trends Announced
Nationwide Sales Up 5.36%, Jeonse Up 4.61% Last Year
Highest Increase Rates in 9 and 5 Years Respectively
Monthly Rent Also Records Largest Rise Since 2015 Statistics Collection
[Asia Economy Reporter Moon Jiwon] In December last year, nationwide housing sale and jeonse prices rose at the largest rate in over nine years. The monthly rent increase rate recorded the highest level since statistics began in July 2015.
Despite the government's successive ultra-strong regulations, the 'triple rise' of sale, jeonse, and monthly rent prices continued. Not only in Seoul and the metropolitan area but also in provincial regions, the rise in housing prices was significant, raising concerns that housing instability is spreading nationwide.
Nationwide Sale Prices Show Highest Increase in 9 Years and 8 Months
According to the nationwide housing price trend for December last year announced by the Korea Real Estate Board on the 5th, nationwide housing sale prices rose by 0.90%, marking the highest increase in 9 years and 8 months since April 2011 when it recorded 1.14%. The cumulative increase rate last year was 5.36%, also the highest in 9 years.
Compared to the previous month, the increase rates expanded in ▲Seoul (0.17%→0.26%) ▲Metropolitan area (0.49%→0.66%) ▲Provinces (0.58%→1.12%).
In the metropolitan area, abundant liquidity due to ultra-low interest rates and the expected decrease in apartment supply this year seem to have driven sale prices up. Gyeonggi-do surged by 0.99%, mainly in areas with transportation and redevelopment project benefits, while Seoul also showed a clear upward trend centered on the Gangnam area, where buying demand has recently begun to recover. In the provinces, major metropolitan cities such as Ulsan (2.54%) and Busan (2.12%) saw significant increases.
Jeonse and Monthly Rent Prices Also Jump... Rental Market Instability Continues
Jeonse and monthly rent prices also continued their upward trend. Nationwide housing jeonse prices rose by 0.97%, the highest increase in 9 years and 3 months since September 2011 (1.33%). The cumulative jeonse price increase last year was 4.61%, the largest in 5 years since 2015 (4.85%).
The market instability triggered by the implementation of the two rental laws?Jeonse and Monthly Rent Cap and the Right to Request Lease Renewal?at the end of July last year shows little sign of calming down.
Not only in high-priced housing concentrated areas such as Seocho (1.10%), Songpa (0.95%), and Gangnam (0.93%) districts in Seoul but also simultaneously in Gyeonggi-do (1.00%), Incheon (1.23%), and Ulsan (2.74%), jeonse prices are rising. In Sejong City, prices surged by 6.15% in December alone, with a cumulative increase of 47.41% over the year.
Nationwide monthly rent prices also recorded the highest increase rate of 0.32% since statistics began in July 2015. Although the cumulative increase rate was negative every year from 2016 to 2019, it turned to an increase of 1.09% due to rising monthly rent demand amid the jeonse shortage.
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