Seoul Apartment Prices Fall for 30 Consecutive Weeks... Record Largest Drop Again

A red light is on at a traffic signal near an apartment in downtown Seoul. (Photo by Asia Economy DB)

[Asia Economy Reporter Ryu Taemin] The historic largest consecutive decline in Seoul apartment sale and jeonse prices continues. Negative outlooks on the housing market are expected to persist next year, leading to continued cautiousness among buyers.

According to the 'Weekly Apartment Price Trend for the 3rd Week of December' released by the Korea Real Estate Board on the 22nd, Seoul apartment prices fell 0.72% compared to last week (-0.65%). This marks 30 consecutive weeks of decline and breaks the record for the largest consecutive drop for 7 weeks since the Real Estate Board began price surveys in May 2012.

By region, the decline was most notable in the 'Nodogang' (Nowon, Dobong, Gangbuk districts) area. Apartment prices in Nowon-gu fell 1.34%, mainly in small-sized units in Sanggye and Gongneung-dong, marking the largest drop in Seoul. Dobong-gu followed with a 1.26% decline, centered on large complexes in Banghak and Chang-dong, and Gangbuk-gu saw a 0.96% drop, mainly in large complexes in Mia and Beon-dong.

In the Gangnam area, Songpa-gu experienced the largest decline at 0.75%. Gangdong-gu fell 0.64%, followed by Gangnam-gu (-0.44%) and Seocho-gu (-0.27%). The entire southeastern region fell by 0.53%.

The Real Estate Board analyzed, “As the year-end and winter off-season approaches, concerns over further declines have caused a sharp drop in purchase inquiries. Only urgent sale properties due to sellers’ circumstances are sporadically traded, and the rate of decline has widened compared to last week.”

The Seoul metropolitan area (-0.91%) and provinces (-0.55%), which had hoped for a turnaround due to deregulation benefits, continue to see expanding declines. Apartment prices in Gyeonggi Province fell 0.96% this week, and Incheon dropped 1.12%, both showing larger declines than last week.

Similarly, Sejong City, which was deregulated, saw its decline widen significantly from -1.22% last week to -1.52% this week, continuing the historic largest drop.

The jeonse market also remains in a slump.

Jeonse prices nationwide (-0.90%), in the metropolitan area (-1.21%), and in Seoul (-1.13%) are all experiencing historic largest consecutive declines. Provinces fell 0.61%, the five major metropolitan cities recorded -0.77%, and Sejong City saw a 1.51% drop, with the rate of decline increasing.

In the metropolitan area, Incheon (-1.36%) and Gyeonggi (-1.22%) both exceeded a 1.0% decline, continuing the downward trend. By city and province, Daegu (-1.12%), Ulsan (-0.69%), Daejeon (-0.79%), and Busan (-0.66%) also showed declines.

The Real Estate Board stated, “Despite it being the winter vacation moving season, the backlog of jeonse listings has not been resolved, leading to an expanded decline in transaction prices. Price adjustments continue downward mainly in areas affected by move-in volumes and large complexes, widening the rate of decline compared to last week.”