Seoul Apartment Prices Continue to Decline... 'Gangnam 3 Districts' Shift to Stable Trend

Apartment complex in Seoul area (Photo by Yonhap News)

[Asia Economy Reporter Ryu Taemin] Apartment prices in Seoul continued their downward trend. However, after the Gangnam 3 districts (Gangnam, Seocho, Songpa) shifted to a stable trend, the rate of decline has decreased in autonomous districts such as Seodaemun and Jongno, which had previously shown high rates of decline. The jeonse prices in Seoul and the metropolitan area are showing a similar rate of decline as the previous week.

According to the weekly apartment price trend for the second week of March announced by the Korea Real Estate Board on the 17th, as of the 14th, apartment sale prices in Seoul fell by 0.02%. This continued the downward trend from the previous week (-0.02%).

In Seoul, 21 out of 25 autonomous districts recorded declines, excluding Seocho-gu. The rate of decline decreased in Seodaemun-gu (-0.07% → -0.04%), Jongno-gu (-0.07% → -0.04%), and Seongbuk-gu (-0.07% → -0.04%), which had shown high rates of decline the previous week. The Gangnam 3 districts, which had been experiencing significant negative growth, all returned to a stable trend. Gangnam-gu and Songpa-gu shifted from a 0.01% decline last week to 0.00% this week, while Seocho-gu maintained a stable 0.00% for three consecutive weeks.

Incheon (-0.02% → -0.04%) saw an increase in the rate of decline. Bupyeong-gu (-0.03%) continued to experience inventory accumulation, Namdong-gu (-0.03%) saw a drop in asking prices, and Michuhol-gu (-0.01%) experienced a continued decline mainly due to price adjustments in large complexes.

Gyeonggi-do (-0.04% → -0.04%) maintained its rate of decline. Icheon-si (0.27%) and Anseong-si (0.14%) showed high growth rates. On the other hand, areas such as Siheung (-0.16%), Anyang Dongan-gu (-0.03%), and Hwaseong (-0.18%) continued to decline due to weakened buyer sentiment and reduced transaction activity.

Sejong saw a 0.19% decline in apartment prices last week, a decrease in the rate of decline compared to the previous week (-0.24%).

A real estate agency in a sparsely populated apartment complex in Seoul./Photo by Hyunmin Kim kimhyun81@

The apartment jeonse market maintained its rate of decline last week in the metropolitan area (-0.04%) and Seoul (-0.03%). Due to high jeonse prices and loan interest burdens, new jeonse demand decreased, and the trend of switching to half-jeonse continued, leading to a decrease in jeonse inquiries and inventory accumulation, sustaining the downward trend.

South of the Han River, Gangnam-gu (-0.03%) declined mainly in reconstruction and older complexes in Gaepo and Daechi-dong, while Songpa-gu (-0.03%) declined mainly in older complexes in Bangi and Pungnap-dong. Seocho-gu (-0.01%) continued to decline as high-priced properties in Jamwon and Banpo-dong accumulated in inventory.

In other metropolitan areas, Incheon recorded -0.10%, an increased rate of decline compared to the previous week (-0.09%). Seo-gu (-0.28%) declined mainly in new towns such as Cheongna and Gajeong-dong, Yeonsu-gu (-0.20%) declined mainly in peripheral complexes in Songdo-dong and Dongchun-dong, and Jung-gu (-0.21%) declined mainly in large complexes in Unnam and Unseo-dong.

Gyeonggi-do maintained its rate of decline at -0.04%, the same as the previous week (-0.04%). Icheon-si (0.29%) rose mainly in Jungpo-dong and Bubal-eup, which have good proximity to workplaces. Anyang Dongan-gu (-0.30%) experienced inventory accumulation mainly in Bisan and Hogye-dong, Hanam-si (-0.19%) saw a decline in asking prices due to inventory accumulation in major complexes in Hagam and Gami-dong, and Siheung-si (-0.19%) declined mainly in high-priced complexes in Baegot and Jukyul-dong.