Seoul Apartment Sale and Jeonse Prices Rise for 34 Consecutive Weeks... Rate of Increase Slows Down

Real Estate 114, January Third Week Seoul Metropolitan Area Apartment Price Trends
Expectations for Redevelopment Projects... Rising Trend Centered on Reconstruction Complexes

[Asia Economy Reporter Kim Hyemin] Seoul apartment sale and jeonse prices have risen for the 34th consecutive week. However, the rate of increase has slowed, leading to an analysis that the price surge is taking a breather due to the winter off-season. On the other hand, redevelopment complexes recorded the highest rate of increase in five months, indicating growing expectations for maintenance projects.

According to Real Estate 114 on the 22nd, as of the third week of January, Seoul apartment sale prices rose by 0.12% compared to the previous week. However, the rate of increase narrowed compared to last week (0.14%). Specifically, general apartments rose by 0.11% compared to the previous week, showing a reduced increase, while redevelopment complexes saw a 0.15% price increase during the same period. This is the highest increase since the end of August last year (0.18%).

In Seoul, the upward trend continued mainly in areas with a concentration of mid- to low-priced apartments, with notable price increases in Gangnam redevelopment apartments. By region, the rates were ▲Dobong 0.24% ▲Gangdong 0.2% ▲Dongdaemun 0.18% ▲Dongjak 0.18% ▲Guro 0.17% ▲Nowon 0.17% ▲Eunpyeong 0.15% ▲Gangnam 0.14% ▲Gangseo 0.14%, in that order.

In new towns, apartment sale prices in Ilsan rose by as much as 0.51% compared to the previous week. Real Estate 114 explained, "With ongoing transportation benefits such as GTX, Ilsan has maintained the highest weekly fluctuation rate among new towns since early December last year." In Gyeonggi and Incheon, the order was ▲Goyang 0.3% ▲Pyeongtaek 0.25% ▲Yongin 0.23% ▲Paju 0.21%.

The jeonse market in Seoul rose by 0.19% compared to the previous week. However, the rate of increase slowed compared to last week (0.21%). Real Estate 114 stated, "As demand decreased, 15 out of 25 districts saw a reduced rate of increase compared to the previous week." By region, the rates were ▲Guro 0.38% ▲Gangnam 0.33% ▲Songpa 0.28% ▲Nowon 0.2% ▲Seodaemun 0.2% ▲Gangdong 0.19% ▲Dobong 0.19%, in that order.

Jeonse prices in new towns rose by 0.13% compared to the previous week. Ilsan was the highest at 0.21%, followed by Pyeongchon 0.19%, Dongtan 0.17%, and Bundang 0.15%. In Gyeonggi and Incheon, Paju recorded the highest increase at 0.26%.

Senior Researcher Yeo Kyung-hee analyzed, "This week, the Seoul apartment market's upward trend has somewhat slowed, but it is too early to conclude a trend reversal. With the government announcing public redevelopment candidate sites and expectations for redevelopment regulation easing growing as a pledge in the by-election, there is a possibility that abundant market liquidity will flow mainly into maintenance project promotion areas."

Senior Researcher Yeo added, "As jeonse prices rise sharply, there is also a possibility that tenants will increase their moves to switch to buying. Overall, with a shortage of listings and spring moving season demand along with subscription waiting demand remaining in the jeonse market, price increases are expected to continue."