Seoul Housing Prices Rise Below 1% for First Time in 6 Months... "Slowing Increase"

[Asia Economy Reporter Jo Gang-wook] The rate of increase in Seoul's housing prices has slowed, falling below 1% for the first time in six months.

According to the monthly KB Housing Market Trends released by KB Real Estate on the 28th, as of the 15th, the November housing (including apartments, row houses, multi-family houses, and detached houses) sales prices in Seoul rose by 0.73%, a decrease in the rate of increase compared to the previous month (1.10%).

Seoul's housing prices had maintained a monthly increase rate above 1% for five consecutive months from June to last month, but this month it dropped below 1%.

KB Real Estate explained, "The sales price outlook index for Seoul in November showed 94, below the baseline (100), significantly lower than the 113 expectation for an increase last month," adding, "The expectation for a decline has grown stronger than that for an increase."

The price outlook index is quantified based on a survey of 4,000 real estate agencies nationwide regarding the expected rise or fall of housing prices in their respective areas. A value above 100 indicates a higher expectation of price increases, while below 100 suggests a greater expectation of price decreases.

However, in Seoul, districts such as Seocho-gu (1.25%), Gangnam-gu (1.24%), Nowon-gu (1.18%), and Gangseo-gu (1.06%) still maintained a monthly housing price increase rate above 1%.

The overall housing price increase rate in the metropolitan area, including Seoul, Gyeonggi, and Incheon, recorded 1.11% this month, showing a slowdown compared to last month (1.27%). Gyeonggi (1.28%) was similar to the previous month (1.27%), while Incheon (1.54%) saw a reduced rate compared to last month (1.78%). In Gyeonggi, areas such as Ilsanseo-gu (2.21%), Ansan Sangnok-gu (2.01%), and Icheon (2.00%) showed high monthly increases above 2%.

Nationwide, housing sales prices rose by 1.10% compared to the previous month. This is 0.05 percentage points higher than last month’s nationwide housing price increase rate (1.05%). The five major metropolitan cities (0.98%) saw an increased rate compared to the previous month, and other regions (1.25%) also rose due to increases in Gangwon (2.06%), Chungnam (1.65%), and Chungbuk (1.60%).

The average nationwide jeonse (long-term lease) price rose by 0.73% this month, 0.11 percentage points higher than last month (0.62%).

Jeonse prices in Seoul and Gyeonggi increased from 0.64% to 0.65% and from 0.70% to 0.74%, respectively, but Incheon’s rate decreased from 0.98% to 0.80%. Overall, the metropolitan area recorded a similar rate to last month (0.72%), at 0.71%.