Despite the government's deregulation measures, the nationwide housing sale and jeonse prices continue to decline. However, the rate of decline has somewhat decreased this month.
According to the housing price trend survey by KB Kookmin Bank on the 26th, the average nationwide housing price (including apartments, row houses, multi-family houses, and detached houses) as of the 13th of this month fell by 0.79% compared to the previous month (hereafter all comparisons are month-over-month). Based on KB market prices, nationwide housing prices have declined by more than 1.0% for three consecutive months from last November through last month. This month, the rate of decline has somewhat lessened.
The overall housing price in Seoul dropped by 0.67% this month, still showing a downward trend, but the decline narrowed compared to the previous month (-1.19%). Seoul apartments also fell by 1.20%, a smaller drop than last month (-2.09%). Row houses and detached houses also decreased by 0.06% and 0.03%, respectively.
Gyeonggi Province fell by 1.15%, and Incheon by 1.39%, with the total decline in housing prices in the metropolitan area shrinking from -1.68% last month to -1.00% this month. The five major metropolitan cities (Daejeon, Daegu, Ulsan, Busan, Gwangju) fell by 0.70%, and other provinces (Sejong City and eight provinces) dropped by 0.47%.
The 'KB Leading Apartment 50 Index' fell to 89.32 this month from 90.08 last month, breaking below the 90 mark. This index has remained below 100 for six consecutive months since last September. The index quantifies the market capitalization fluctuation rate of the top 50 apartment complexes nationwide, calculated by multiplying the number of households by the sale price.
Nationwide housing jeonse prices also fell by 1.45% this month. Seoul (-1.47%), Incheon (-2.36%), and Gyeonggi (-2.31%) all declined, but the rate of decline narrowed compared to last month, with the metropolitan area’s drop shrinking from -2.81% to -2.01%.
Jeonse prices in provincial areas also fell across the board. The five major metropolitan cities dropped by 1.07%, and other provinces fell by 0.74%, both showing reduced rates of decline.
The sale price and jeonse price outlook indices rose compared to last month, but the outlook for sale prices remains predominantly negative. The nationwide sale price outlook index increased from 67 last month to 76 this month. Seoul rose from 65 to 71, and the metropolitan area including Gyeonggi (67→78) and Incheon (65→79) also saw increases.
The KB Real Estate Price Outlook Index surveys over 6,000 brokerage offices nationwide to gauge the expected rise or fall in local housing prices, quantifying the results on a scale from 0 to 200. A value above 100 indicates a stronger expectation of price increases, while below 100 suggests a dominant expectation of price declines. The nationwide jeonse price outlook index rose from 70 to 77.
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