Gangnam and 1st Generation New Towns Also Stall... Nationwide Housing Price Decline Areas Increase from 79 to 85 Locations

Seoul Apartment Prices Fall for 2 Consecutive Weeks... Inventory Accumulation
Gangnam-gu Apartment Prices Halt Rise After 12 Weeks
1st Generation New Towns Show Reduced Price Increase

As concerns over interest rate hikes and falling housing prices grow, the real estate market remains cautious, with apartment prices in Seoul declining for the second consecutive week. The upward trend in Gangnam and the first-generation new towns, which had continued due to expectations of deregulation, has slowed down.

According to the 'Weekly Apartment Price Trends for the First Week of June' released by the Korea Real Estate Agency on the 9th, apartment prices in Seoul fell by 0.01% for the second week in a row following last week. Apartment prices in Gangnam-gu also remained flat, halting their rise for the first time in 12 weeks since the first week of February.

Gangnam-gu (0.00%) showed a flat trend due to an inventory backlog and cautious market sentiment. Songpa-gu fell by 0.01% compared to last week, marking a decline for three consecutive weeks, while Gangdong-gu (0.00%) has maintained a flat trend for a month. In the Gangnam area, only Seocho-gu, which is not designated as a land transaction permission zone, saw a 0.03% increase, driven mainly by major complexes such as Bangbae-dong, expanding from last week's 0.01% rise.

Yongsan-gu, which had shown a sharp rise due to the positive effect of the presidential office relocation, rose by 0.02% this week, continuing a slowdown in the rate of increase for the second consecutive week following last week's 0.03%. Jongno-gu shifted from flat last week to a 0.01% decline this week.

Apartment Sale Price Index Change Rate by Province

In the northern part of Seoul, apartment prices in Nowon-gu fell by 0.03%, the same as last week, while Gangbuk-gu and Dobong-gu, which had each declined by 0.02% last week, turned flat this week.

Apartment prices in Gyeonggi and Incheon regions fell by 0.02% and 0.05%, respectively, unchanged from last week.

In areas with first-generation new towns, such as Bundang-gu in Seongnam-si (0.03%), Goyang-si (0.04%), and Gunpo-si (0.01%), the upward trend continued due to reconstruction expectations, but the rate of increase slowed compared to last week (0.05%, 0.06%, and 0.05%, respectively).

In the provinces, Sejong-si, an oversupplied area, fell by 0.10%, narrowing the decline from last week's 0.13%, but the downward trend has continued for more than 10 months since late July last year (-0.09%). Daegu-si dropped by 0.16% this week, marking the largest decline among metropolitan cities nationwide.

Among the 176 publicly announced cities, counties, and districts nationwide, the number of areas with rising prices decreased from 78 last week to 72, flat areas remained at 19, and declining areas increased from 79 to 85.

The jeonse (long-term lease) market generally remained stable, with Seoul apartment jeonse prices holding steady, ending a three-week decline. Jeonse prices in Gangnam-gu rose by 0.04% for the second consecutive week, and Seocho-gu's increase expanded from 0.01% last week to 0.02% this week.

The Korea Real Estate Agency analyzed, "While some complexes with school districts or relocation demand due to redevelopment projects saw price increases, other areas experienced declines due to interest rate burdens and seasonal off-season effects, leading to a mixed trend and an overall flat market in Seoul."