Korea Real Estate Board February Third Week Housing Price Trends
Sales Growth Rate Slows in Seoul, Capital Area, and Provinces
Jeonse Market Also Shows Reduced Increase and Slight Pause
Jeonse Price Growth Rate in Gangnam 3 Districts Halved Compared to Previous Week
[Asia Economy Reporter Moon Jiwon] The increase in apartment sale prices nationwide, including Seoul and the metropolitan area, has all narrowed compared to the previous week. This is interpreted as a result of a cautious stance centered on Seoul following the announcement of the 2·4 housing supply plan.
The apartment jeonse (long-term lease) market is also showing signs of a gradual slowdown in price increases. In the Gangnam 3 districts (Gangnam, Seocho, Songpa), the jeonse price increase rate has shrunk to about half compared to the previous week. Although the upward trend continued in Gyeonggi Province and other regions, the accumulation of listings has reduced the rate of increase.
According to the nationwide housing price trend survey for the third week of February released by the Korea Real Estate Board on the 18th, the nationwide apartment sale price rose by 0.25%, narrowing from 0.27% the previous week. The nationwide apartment sale price increase rate rose to 0.29% in the fourth week of January but has been decreasing for two consecutive weeks.
In Seoul, apartment sale prices rose by 0.08% this week, slightly down from 0.09% the previous week. The Korea Real Estate Board explained, "Following the announcement of the 2·4 plan, there has been a decrease in purchase inquiries and a cautious stance. Additionally, the Lunar New Year holiday and other factors have weakened buying demand, leading to a reduced rate of increase."
In Seoul, Mapo-gu (0.11%), which benefits from a complex shopping mall, saw significant increases mainly in Sangam-dong. Dobong-gu (0.10%) and Nowon-gu (0.09%) also experienced relatively strong buying demand, mainly in older and reconstruction complexes.
The Gangnam area saw reduced buying demand due to the 2·4 plan and the Lunar New Year holiday. Songpa-gu rose by 0.10% this week, down from 0.14% the previous week. Gangnam-gu (0.09%), Seocho-gu (0.08%), and Gangdong-gu (0.06%) also saw a narrowing of the increase. However, in some reconstruction complexes, sale prices rose due to development expectations.
Yangcheon-gu (0.09%) also rose mainly in Mok-dong and Sinjeong-dong, where redevelopment projects are anticipated, and Gwanak-gu (0.06%) increased mainly in Bongcheon-dong.
Gyeonggi Province (0.46%→0.42%) and Incheon (0.37%→0.34%) also saw a narrowing of apartment sale price increases.
In Gyeonggi Province, while the overall increase narrowed, upward trends were relatively strong in Uiwang-si (1.05%), Ansan-si (0.83%), Dongducheon-si (0.82%), and Uijeongbu-si (0.81%).
In Incheon, apartment sale prices rose in Yeonsu-gu (0.66%), where redevelopment expectations exist, and Seo-gu (0.40%), where living conditions are expected to improve, but the rate of increase slowed.
In the provinces (0.22%→0.20%), the overall rate of increase also narrowed. The five major metropolitan cities (0.29%→0.27%), eight provinces (0.16%→0.13%), and Sejong (0.17%→0.16%) all saw a slowdown in buying demand.
In Sejong, due to high listing prices causing fatigue and sluggish transactions, prices rose mainly in the relatively low-priced mid-range areas of Jochiwon-eup within the region.
The rapid rise in apartment jeonse prices last year is also showing signs of a gradual slowdown.
Nationwide apartment jeonse prices rose by 0.19% this week, down from 0.22% the previous week. The metropolitan area (0.22%→0.18%), Seoul (0.10%→0.08%), and provinces (0.21%→0.20%) all saw a reduction in the rate of increase.
In Seoul, the upward trend continued mainly in areas with good school districts and subway access or where relocation demand due to redevelopment projects exists, but the rate of increase narrowed due to the Lunar New Year holiday, seasonal off-season, fatigue from rapid price rises, and an increase in move-in volumes.
The Gangnam 4 districts saw the jeonse price increase rate drop to about half compared to the previous week. Songpa-gu (0.14%→0.07%), Gangdong-gu (0.07%→0.05%), Gangnam-gu (0.10%→0.05%), and Seocho-gu (0.11%→0.05%) all saw a narrowing of the increase.
In Gyeonggi Province (0.27%→0.23%), jeonse prices rose in Namyangju-si (0.57%), Dongducheon-si (0.50%), and Yangju-si (0.37%), while Hanam-si (-0.16%) continued to decline due to an accumulation of listings mainly in new buildings in Hagam and Pungsan-dong.
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