Seoul Apartment Prices See Widened Decline Again After 6 Weeks

"Gap Between Desired Selling and Buying Prices Remains"
Jeonse Prices Also Fall Sharply Due to Inventory Backlog

[Asia Economy Reporter Noh Kyung-jo] The decline in Seoul apartment prices widened for the first time in six weeks. The gap between sellers' and buyers' desired prices has not narrowed, leading to a wait-and-see stance, with mainly urgent sales driving downward transactions.

According to the weekly apartment price trend announced by the Korea Real Estate Board on the 9th, Seoul apartment prices fell by 0.31% in the first week of February (as of the 6th), a larger drop than the previous week (-0.25%). The downward trend continued for the 37th consecutive week.

The Real Estate Board explained, "Although inquiries and transaction volumes slightly increased due to the easing trend of market interest rates, the decline continues as it has not led to active transactions."

Among the 25 autonomous districts in Seoul, Gangseo-gu (-0.58%) recorded the largest decline for four consecutive weeks despite a smaller drop than the previous week. It was followed by Geumcheon (-0.57%), Gangdong (-0.48%), Gwanak (-0.47%), and Seodaemun (-0.46%). Besides Gangseo-gu, areas where the decline narrowed compared to the previous week included Jongno-gu (-0.23% → -0.22%), Eunpyeong-gu (-0.25% → -0.24%), Yeongdeungpo-gu (-0.37% → -0.35%), and Songpa-gu (-0.19% → -0.18%).

Gyeonggi (-0.75%) and Incheon (-0.51%) also fell further by 0.20 percentage points and 0.12 percentage points respectively compared to the previous week, reflecting expectations of additional price declines.

In Gyeonggi, Hwaseong-si (-1.51%) saw price drops mainly in Dongtan New Town and Banwol·Byeongjeom-dong areas, while Seongnam Bundang-gu (-1.46%) experienced declines primarily in older buildings in Gumi, Jeongja, and Yatap-dong. In Incheon, Bupyeong-gu (-0.69%) saw notable declines in major complexes in Bugae, Sanggok, and Galsan-dong, and Seo-gu (-0.55%) showed a pronounced downward trend in Majon, Wondang, Wanggil, Cheongna, and Seoknam-dong, influenced by new supply.

Among the five major metropolitan cities in the provinces, Daegu (-0.46% → -0.65%) had the largest increase in the rate of decline compared to the previous week, falling by 0.49%. Sejong recorded the largest drop among all cities and provinces, falling by 1.15%.

Nationally, apartment jeonse (long-term lease) prices also fell by 0.76%, a larger drop than the previous week (-0.71%). Particularly, Gyeonggi (-1.16%), which was the only region among 17 cities and provinces to show a decline rate in the 1% range last week, saw the drop widen. Seoul and Incheon fell by 0.95% and 0.87%, respectively. The five major metropolitan cities in the provinces showed a decline of 0.64%.

The Real Estate Board stated, "Due to the impact of move-in volumes, the backlog of listings is worsening, and expectations of further declines remain high," adding, "In a tenant-favored market, transactions with large price drops continue."