"Will Housing Prices Stabilize?"... 80% of Apartment Transactions Last Month Fell Below Peak Prices

Analysis of Real Estate Data by Rep. Kim Hoe-jae's Office
Multiple Complexes Experiencing Billion-Won Scale Price Drops

[Image source=Yonhap News]

[Asia Economy Reporter Kim Jin-ho] Last month, 8 out of 10 apartment transactions nationwide were recorded at prices lower than their previous highest prices. Analysts suggest that the downward trend in housing prices has become clear, supported by the government's comprehensive regulations, as numerous complexes nationwide have seen price drops of several hundred million won.

According to data on 'Nationwide Apartment Transaction Status' received by Kim Hoe-jae, a member of the National Assembly Land, Infrastructure and Transport Committee from the Democratic Party of Korea, from the Korea Real Estate Board, among 22,729 apartment transactions conducted in December last year (based on the reporting date of January 18), 79.5% (10,868 cases) were transactions at prices lower than the previous highest price.

This is an increase of 3.6 percentage points compared to November last year (75.9%). In the metropolitan area, this ratio exceeded half significantly at 67.6%.

By region, Gyeonggi Province recorded 72.0%, Incheon 62.8%, and Seoul 54.3%. Notably, in Seoul, the proportion of transactions at lower prices in December last year exceeded half for the first time among monthly transactions last year.

According to the Ministry of Land, Infrastructure and Transport's actual transaction information, apartments with price drops in the hundreds of millions of won can be easily confirmed. For example, Acro River Park in Banpo-dong, Seocho-gu, Seoul, known as a high-priced apartment along the Han River, was traded at 3.98 billion won in December last year, down 520 million won from the previous highest price of 4.5 billion won (November 15).

In Hanam-si, Gyeonggi Province, Misagangbyeon Hoban Summit with an exclusive area of 99.55㎡ was traded at a record high of 1.57 billion won in May last year, but was traded at 1.2 billion won in December last year, dropping 370 million won in half a year. In Namdong-gu, Incheon, Nonhyeon Shinil Happy Tree with an exclusive area of 134.8㎡ was sold for 500 million won in December last year, down 225 million won from the highest price of 725 million won in September last year.