Seoul Apartment Prices Fall for 7 Consecutive Weeks... Gangnam New Apartments Stand Alone in Strength

The number of autonomous districts in Seoul where the average apartment sale price exceeds 50 million KRW per 3.3㎡ has more than doubled in one year. As of November last year, only Gangnam-gu, Seocho-gu, and Songpa-gu among the 25 autonomous districts in Seoul had average apartment sale prices exceeding 50 million KRW per 3.3㎡, but last month, Yongsan-gu, Seongdong-gu, Mapo-gu, and Gwangjin-gu were added, making a total of seven districts. The photo shows the view of Seoul apartments from 63 Square. Photo by Kim Hyunmin kimhyun81@

[Asia Economy Reporter Kim Min-young] This week, apartment prices in Seoul fell for the seventh consecutive week, but newly built apartments in Gangnam-gu showed a strong performance alone. Apartment prices in provincial areas turned downward for the first time in 1 year and 11 months.

According to the weekly apartment price trend report by the Korea Real Estate Board (as of the 7th) on the 13th, the nationwide sales price fell by 0.02% compared to the previous week. The decline in sales prices widened compared to last week (-0.01%).

Seoul apartment sales prices fell for seven consecutive weeks as a wait-and-see stance continued ahead of the presidential election. Seoul apartment sales prices dropped by 0.02% compared to the previous week. The decline was smaller than last week’s (-0.03%). The decline was greater in the 14 districts north of the Han River (-0.04%) than in the 11 Gangnam districts (-0.01%).

The Korea Real Estate Board stated, "Due to domestic and international economic uncertainties, weakened buying demand and transaction activities, and falling jeonse prices, the market remains buyer-favored with continued transaction contraction. Price adjustments continued mainly in complexes that surged last year or have accumulated listings, maintaining an overall downward trend."

However, looking at the apartment sales price index by building age, in the Gangnam area of Seoul, apartments built within the last 5 years saw a 0.01% increase compared to the previous week, marking a shift to an upward trend. Regionally, apartment prices in the southwestern area, including Yangcheon-gu, for apartments aged over 5 years but less than 10 years, rose by 0.01% compared to the previous week, turning upward. In the southeastern area, which includes the three Gangnam districts of Gangnam, Seocho, and Songpa, apartments built within 5 years saw a 0.04% increase compared to the previous week, also shifting to an upward trend. While price adjustments are occurring mainly in older apartments in Gangnam without positive factors, newly built and redevelopment-expected complexes continue to show strong apartment prices.

Meanwhile, the decline widened in Gyeonggi and Incheon. Gyeonggi (-0.02% → -0.04%) led the decline with increased drops in Siheung-si (-0.28%), Hwaseong-si (-0.15%), and Anyang Dongan-gu (-0.12%). Incheon, which had shifted from a decline to stable last week (0.00% → -0.02%), returned to a downward trend within a week as listings accumulated and asking prices fell.