Prolonged Transaction Freeze in the Capital Region... Continued Price Weakness

Real Estate R114, Trends in the Metropolitan Area Real Estate Market

[Asia Economy Reporter Kim Hyemin] The volume of housing sales transactions in the Seoul metropolitan area remains at historically low levels. With buyer sentiment frozen solid and showing little sign of revival, the price weakness trend continues.

According to Real Estate R114 on the 10th, this week’s apartment sale prices in Seoul fell by 0.06% compared to the previous week, maintaining a similar trend as last week. Reconstruction apartments dropped by 0.11%, while general apartments decreased by 0.05%.

Seoul saw declines across all areas due to cautious buyers. By region, the drops were ▲Dobong (-0.24%) ▲Gangseo (-0.16%) ▲Gangdong (-0.15%) ▲Yongsan (-0.15%) ▲Songpa (-0.12%) ▲Guro (-0.07%) ▲Nowon (-0.07%) in order.

New towns fell by 0.04% compared to the previous week. ▲Paju Unjeong (-0.23%) ▲Pyeongchon (-0.11%) ▲Dongtan (-0.06%) ▲Ilsan (-0.05%) ▲Bundang (-0.03%) ▲Gimpo Hangang (-0.03%) ▲Jungdong (-0.02%) and others declined.

Gyeonggi and Incheon fell by 0.05%. By region, ▲Bucheon (-0.17%) ▲Gunpo (-0.15%) ▲Suwon (-0.11%) ▲Yongin (-0.11%) ▲Hwaseong (-0.08%) ▲Gimpo (-0.06%) and others decreased.

The jeonse (long-term lease) market is seeing a buildup of jeonse listings as rental demand shifts toward monthly rent markets. In Seoul, the seasonal off-peak period has made it harder to absorb jeonse listings, resulting in a 0.08% decline compared to the previous week. By region, ▲Gangseo (-0.27%) ▲Geumcheon (-0.18%) ▲Seodaemun (-0.15%) ▲Seocho (-0.15%) ▲Yangcheon (-0.11%) ▲Gwangjin (-0.10%) ▲Yeongdeungpo (-0.10%) ▲Gangnam (-0.09%) ▲Guro (-0.09%) declined.

New towns and Gyeonggi·Incheon fell by 0.10% and 0.07%, respectively.

Yoon Jihae, Chief Researcher at Real Estate R114, said, "Although the government has introduced various measures such as lifting regulation zones, easing loan restrictions, and relaxing reconstruction safety inspection regulations to prevent a hard landing in the real estate market, it is expected to be difficult for these to have an immediate impact on price trends."