Apartment Price Slowdown Ahead of Seollal Holiday... "No Transactions Even with Lowered Asking Prices"

[Asia Economy Reporter Kim Hyemin] Despite the real estate pledges of the ruling and opposition presidential candidates, buying sentiment remains cold. The apartment transaction market is showing a sluggish appearance, and ahead of the Lunar New Year holiday, the rise in Seoul apartment prices has narrowed.

According to Real Estate R114 on the 29th, the apartment sale price in Seoul in the last week of January rose by 0.01% compared to the previous week. General apartments increased by 0.01%, and reconstruction apartments rose by 0.03%.

In Seoul, as the transaction stagnation continues, more than half of the 25 autonomous districts, 15 areas, remained flat or declined. By region, ▲Geumcheon (0.08%) ▲Jungnang (0.07%) ▲Gangnam (0.06%) ▲Jongno (0.05%) ▲Gwangjin (0.02%) rose. On the other hand, Seodaemun fell by -0.03%.

New towns turned to decline again this week. By region, ▲Dongtan (-0.04%) ▲Gwanggyo (-0.02%) ▲Pyeongchon (-0.02%) ▲Bundang (-0.02%) declined. Gyeonggi and Incheon recorded a flat 0%, showing the lowest volatility in about 30 months. By region, ▲Paju (0.04%) ▲Namyangju (0.03%) ▲Guri (0.02%) ▲Gimpo (0.02%) rose, while ▲Incheon (-0.04%) ▲Suwon (-0.03%) fell. Incheon, where supply burden has increased this year, saw prices drop by 10 to 20 million KRW in Bugae-dong Jugong Complex 6 and Samsan-dong Jugong Mirae Town Complex 3.

The jeonse (long-term lease) market showed a slowdown in prices as demand movement was not significant during the winter off-season. Seoul recorded flat prices compared to the previous week. ▲Dobong (0.11%) ▲Dongdaemun (0.1%) ▲Nowon (0.06%) ▲Geumcheon (0.05%) rose, while ▲Jungnang (-0.22%) ▲Seongbuk (-0.15%) ▲Seodaemun (-0.04%) fell.

New towns declined by 0.01% compared to the previous week, and Gyeonggi and Incheon recorded flat prices at 0%.

Lim Byungcheol, Senior Researcher at Real Estate R114, diagnosed, "Although development pledges such as easing maintenance project regulations and expanding transportation are pouring out, from the beginning of the year, loan regulations, additional interest rate hikes, and increasing uncertainty ahead of the presidential election have deepened the cautious stance between sellers and buyers."

Senior Researcher Lim added, "The metropolitan area apartment sales market is expected to continue the market's wait-and-see attitude and severe transaction stagnation for the time being until a clear real estate policy direction emerges beyond the Lunar New Year holiday."