Korea Real Estate Board August 2nd Week Apartment Price Trends
Seoul -0.07%→ -0.08%
Capital Region -0.09%→ -0.10%
As the real estate market transaction freeze prolongs, the nationwide apartment sale and jeonse prices are also declining more sharply. Seoul apartment prices have recorded a decline for 11 consecutive weeks, marking the first time in 3 years and 7 months since January 2019 that a decline has lasted over 11 weeks.
According to the 'Weekly Apartment Price Trend for the 2nd Week of August' released by the Korea Real Estate Board on the 11th, Seoul apartment prices fell by 0.08%, with the rate of decline expanding compared to last week (-0.07%).
The 14 districts in Gangnam recorded -0.12%, with the decline rate increasing from the previous week (-0.11%). Nowon-gu (-0.20%) saw price adjustments mainly in Sanggye, Junggye, and Wolgye-dong, Dobong-gu (-0.18%) in Chang-dong, Seongbuk-gu (-0.16%) in Jangwi-dong, and Jongno-gu (-0.15%) in Gyobuk, Changsin, and Sungin-dong, all experiencing expanded price declines. Yongsan-gu halted its three-week decline and maintained stability for two weeks, reflecting the positive impact of the re-promotion of the Yongsan International Business District.
The 11 districts in Gangnam continued to decline by 0.03% following last week. The southeastern area, including Gangnam, Seocho, Songpa, and Gangdong-gu, fell by 0.03%, with the decline rate increasing from last week (-0.02%). Gangnam-gu recorded -0.02%, maintaining its decline rate, while Songpa-gu's decline expanded from -0.05% last week to -0.06%. Seocho-gu alone remained stable at 0.00%.
The Korea Real Estate Board explained, "Price reductions in listed properties are appearing one after another by region," adding, "Due to market concerns that housing prices will continue to decline for the time being and the impact of the summer vacation season, buyer inquiries are sluggish and transaction volumes are decreasing, which is expanding the rate of decline."
In Incheon, apartment price changes recorded -0.15% this week following last week's -0.11%. Amid prolonged cautious sentiment due to interest rate hikes and other factors, Michuhol-gu (-0.22%) saw declines mainly in Juan and Sungui-dong, Yeonsu-gu (-0.20%) in Yeonsu-dong and other old downtown areas, and Gyeyang-gu (-0.18%) in Hyoseong and Jakjeon-dong, expanding the overall decline in Incheon.
Gyeonggi Province recorded -0.10% this week, down from -0.09% last week. Osan-si (-0.24%) experienced intermittent quick sale transactions mainly in Nueup and Busan-dong, Suwon Yeongtong-gu (-0.24%) declined due to new housing supply, and Uiwang-si (-0.22%) fell influenced by fatigue from last year's rapid price surge, expanding the overall decline in Gyeonggi.
Accordingly, the entire Seoul metropolitan area apartment sale prices recorded -0.10% this week, expanding from last week's -0.09% decline.
Among the 176 publicly announced cities, counties, and districts nationwide, the number of areas with price increases slightly rose from 28 to 29 compared to last week, stable areas decreased from 16 to 9, and declining areas increased from 132 to 138.
Jeonse prices are also continuing their downward trend, similar to sale prices.
Seoul apartment jeonse prices fell by 0.03% this week, maintaining the same rate of decline as last week. Incheon’s decline expanded from -0.11% to -0.18%, and Gyeonggi’s from -0.08% to -0.10%. Consequently, the metropolitan area’s jeonse prices recorded a larger decline of -0.09% this week, up from -0.07% last week.
Among the 176 publicly announced cities, counties, and districts, the number of areas with price increases remained the same at 40, stable areas decreased from 18 to 14, and declining areas increased from 118 to 122 compared to last week.
The Korea Real Estate Board analyzed, "Inquiries about switching to semi-jeonse or monthly rent are increasing due to the burden of jeonse loan interest, and as transactions are mainly renewal contracts, new jeonse listings are gradually accumulating, leading to continued downward adjustments in jeonse prices."
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