Korea Real Estate Board, January Nationwide Housing Price Trend Survey
"Recovery Expectations Driven by Loan Interest Rate Reduction Policy"
[Asia Economy Reporter Noh Kyung-jo] The nationwide housing sale prices, which had recorded the largest decline since statistics began for two consecutive months, reduced their drop in January this year. This is interpreted as being influenced by the market trend of lowering loan interest rates and the government's regulatory easing measures, including the 1·3 real estate policies.
On the 15th, the Korea Real Estate Board announced that according to the nationwide housing price trend survey in January this year, the comprehensive housing sale prices (apartments, row houses, detached houses, etc.) nationwide fell by 1.49% compared to the previous month. Previously, in November and December last year, the rates of change were -1.37% and -1.98%, respectively, marking the largest declines ever recorded, but the decline slowed as market recovery expectations took effect.
By region, the decline narrowed in Seoul (-1.96% → -1.25%), the metropolitan area (-2.60% → -1.86%), and provinces (-1.42% → -1.15%).
Among the 25 autonomous districts in Seoul, only Guro-gu (-1.39% → -1.40%) saw an increase in the decline. The largest drop was recorded in Nowon-gu (-2.06%). Nowon-gu's prices fell mainly in mid- to small-sized older buildings in Junggye, Sanggye, and Gongneung-dong, where transactions were focused on urgent sales. Dobong-gu (-1.79%) saw price drops mainly in Chang, Banghak, and Ssangmun-dong, while Seongbuk-gu (-1.53%) experienced declines mainly in large complexes in Hawolgok and Gireum-dong. In the Gangnam area, Gangseo-gu (-1.66%) saw price decreases mainly in major complexes in Gayang, Magok, and Deungchon-dong, and Yeongdeungpo-gu (-1.56%) experienced declines centered on Dangsan, Mullae, and Yeouido-dong.
Gyeonggi Province (-2.26%) continued to decline mainly in new towns such as Suwon, Hwaseong, and Hanam, and Incheon (-1.92%) maintained a downward trend mainly in apartment-dense areas such as Yeonsu, Jung, and Bupyeong districts, but the rate of decline slowed. In the provinces, the inventory backlog worsened due to the supply volume amid buyers' cautious stance. Daegu (-1.92%) saw declines mainly in Suseong-gu and Dalseong-gun, Daejeon (-1.71%) in Yuseong and Seo-gu, and Gyeongnam (-1.34%) continued to decline in Changwon Seongsan and Masanhwoe-gu.
Last month, the nationwide comprehensive jeonse (long-term lease) prices fell by 2.29%, narrowing the decline by 0.13 percentage points compared to the previous month (-2.42%). Seoul, the metropolitan area, and provinces fell by 2.95%, 3.23%, and 1.40%, respectively. The Real Estate Board explained, "While the decline continues due to prolonged inventory backlog caused by increased supply, some school district and relocation demand occurred, leading to a slowdown in the rate of decline compared to the previous month."
In Seoul, jeonse prices fell mainly in major large complexes. The largest declines were in Yangcheon (-4.23%), Nowon (-4.03%), Gangnam (-3.93%), Seocho (-3.79%), and Seongdong (-3.42%) districts. In the provinces, Daegu (-2.57%) saw declines mainly in Dalseong-gun and Dalseo-gu, Busan (-2.25%) experienced intensified downward adjustments in Gijang-gun, and Daejeon (-2.18%) saw jeonse price drops mainly in Yuseong and Daedeok-gu. Urgent sales transactions such as switching homes are reported to be continuing.
Meanwhile, nationwide monthly rent prices fell by 0.33%, expanding the decline compared to the previous month (-0.28%). The downward trend in jeonse prices also affected monthly rents. The decline widened in Seoul (-0.27% → -0.33%), the metropolitan area (-0.45% → -0.51%), and provinces (-0.13% → -0.16%).
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