Seoul Apartment Prices Fall for 5th Week... Greater Decline in Capital Area and Nationwide

Apartment prices in Seoul have declined for five consecutive weeks, with the downward trend intensifying nationwide, including the metropolitan area.

According to the "Weekly Apartment Price Trends for the 4th Week of June" released by the Korea Real Estate Board on June 30, apartment prices in Seoul fell by 0.03% following last week.

Although some ultra-high-end complexes such as Seocho-gu (0.02%) have seen transaction reports, the accumulation of listings and growing concerns over additional interest rate hikes have sustained the weak trend for five consecutive weeks.

By district, apartment prices in Nowon-gu and Gangbuk-gu, where urgent sales have recently increased, saw the decline widen from -0.05% last week to -0.07% this week, indicating a steep downward trend in the northern Seoul area.

Dongjak-gu shifted from stable prices for two consecutive weeks to a 0.01% decline this week. Gangnam-gu remained stable for four consecutive weeks, and Yongsan-gu also showed no change for two consecutive weeks.

The Real Estate Board analyzed, "Although intermittent transactions occurred mainly in some ultra-high-end areas, overall, concerns over additional interest rate hikes and inventory buildup have led to a wait-and-see stance, dampening transaction sentiment and sustaining the downward trend across Seoul."

According to the real estate big data platform Asil, the number of apartment listings in Seoul reached about 65,000 at the end of June, a 14.8% increase since the temporary exclusion of capital gains tax surcharges implemented on June 10. However, the number of reported transactions decreased from 1,752 in April to 1,733 as of May 29.

The downward trend continues across the entire metropolitan area. Apartment prices in Gyeonggi Province fell further from -0.04% last week to -0.05%, and Incheon’s decline widened from -0.06% to -0.08%.

In Seongnam’s Bundang-gu, apartment prices rose by 0.02% due to reconstruction expectations in the first-generation new town, but the increase slowed compared to 0.03% last week. Jungwon-gu, an old downtown area, fell by 0.06%, deepening the decline from -0.04% last week, resulting in Seongnam city overall halting its rise and turning stable this week.

Yongin and Suwon cities dropped by 0.13% and 0.12%, respectively, with the decline widening from last week’s -0.06% and -0.10%. Goyang, home to Ilsan New Town, remained stable.

Incheon’s decline has widened due to last year’s fatigue from price increases and the impact of new housing supply.

With the widening declines in Gyeonggi and Incheon, the overall apartment price change rate in the metropolitan area also fell by 0.05%, a larger drop than last week’s -0.04%.

Nationwide apartment prices also saw a larger decline, falling from -0.03% last week to -0.04% this week.

Meanwhile, Seoul’s apartment jeonse (long-term lease) prices have fallen by 0.01% for three consecutive weeks. Incheon’s jeonse prices dropped by 0.16%, a 0.07 percentage point (p) larger decline than last week’s -0.09%.