"Preferred Complexes' Quick Sales Deplete Amid Cautious Market"
Jeonse Prices Also Show Reduced Decline... Inventory Backlog Continues
Seoul apartment prices continued their decline for the 40th consecutive week, but the rate of decrease narrowed for the third straight week. This is interpreted as a result of the depletion of urgent sale properties in highly preferred complexes, despite a cautious stance in the sales market.
View of an apartment complex from Lotte World Tower Seoul Sky in Songpa-gu, Seoul / Photo by Yonhap News
According to the weekly apartment price trend announced by the Korea Real Estate Board on the 2nd, Seoul apartment prices fell by 0.24% in the fourth week of February (as of the 27th), a smaller decline compared to the previous week (-0.26%).
The Real Estate Board explained, "The gap between buyers' and sellers' desired prices has not narrowed, and transactions are mainly focused on urgent sales, so the downward trend continues," but also noted, "A mild price increase was observed mainly in key complexes."
Among the 25 autonomous districts in Seoul, Songpa-gu (-0.02%) showed the smallest decline. This was followed by Seocho-gu (-0.09%), Gangnam-gu (-0.14%), and Jungnang-gu (-0.15%). By region, the southeastern area including the three Gangnam districts (Seocho, Gangnam, Songpa) and Gangdong-gu had the lowest decline rate at 0.11%. Additionally, Seongbuk-gu (-0.17%), Yongsan-gu (-0.19%), Nowon-gu and Dongdaemun-gu (each -0.21%), Seodaemun-gu (-0.23%), and Mapo-gu (-0.22%) experienced declines lower than the Seoul average.
The areas with the largest declines were Geumcheon-gu and Dongjak-gu (each -0.49%). In Geumcheon-gu, prices fell due to an accumulation of listings in large complexes in Siheung and Doksan-dong. In Dongjak-gu, prices dropped mainly in major complexes in Sangdo and Sadang-dong.
Gyeonggi Province (-0.47%) also continued its downward trend with a reduced rate of decline compared to the previous week. In Gunpo-si (-0.98%), older complexes in Sanbon, Geumjeong, and Domagyo-dong experienced price drops. Hanam-si (-0.74%) saw price decreases mainly in the old downtown areas of Misaji-gu, Sinjang, and Deokpung-dong. In Siheung-si (-0.62%), the decline was prominent in Daeya, Neunggok, Janggok, and Jeongwang-dong, where listings continue to accumulate in new housing sites such as Eunhaeng and Janghyeon.
Incheon (-0.36%) maintained the same rate of decline as the previous week. While transactions were mainly declining in large complex-dense areas, Gyeyang-gu (-0.67%) saw price drops in small older complexes in Yongjong, Oryu, Gyesan, and Jakjeon-dong. Michuhol-gu (-0.45%) experienced price decreases centered around Hakik, Juan, and Yonghyeon-dong.
The five major metropolitan cities in the provinces showed a decline rate of 0.41%. These include Busan (-0.45%), Daegu (-0.49%), Gwangju (-0.26%), Daejeon (-0.39%), and Ulsan (-0.37%). Sejong recorded a 0.55% decline, the largest drop among all cities and provinces nationwide.
Apartment jeonse (long-term lease) prices fell by 0.54% nationwide, a narrower decline compared to the previous week (-0.63%). Among the 17 cities and provinces, six areas including Seoul (-0.70%), Gyeonggi (-0.75%), Busan (-0.61%), Daegu (-0.72%), Ulsan (-0.64%), and Sejong (-0.57%) saw jeonse prices fall more than the national average.
The Real Estate Board stated, "Although the decline is narrowing as low-priced properties with large price drops are being sold off and additional price drop contracts are decreasing, the long-term accumulation of listings and the downward trend in jeonse prices continue due to factors such as regional move-in volumes."
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