"Rising Transactions Across Regions"... Nationwide Housing Prices Narrow Decline for 4 Consecutive Months

Recently, as rising transactions occurred mainly in preferred complexes in some areas, the nationwide decline in housing prices narrowed for the fourth consecutive month.

View of downtown apartments from Namsan, Seoul. / Photo by Yonhap News

On the 15th, the Korea Real Estate Board announced that according to the nationwide housing price trend survey in April this year, the comprehensive housing (apartments, multiplex houses, detached houses, etc.) sale price fell by 0.47%, reducing the decline compared to the previous month (-0.78%). Since January's -1.49% change rate, which was a smaller decline than the previous month (-1.98%), the downward trend has been slowing for four consecutive months.

By region, the decline narrowed in Seoul (-0.55% → -0.34%), the metropolitan area (-0.89% → -0.49%), and provinces (-0.69% → -0.45%).

In Seoul, all 25 autonomous districts reduced their decline, with Geumcheon-gu (-0.74%) experiencing the largest drop. This was followed by Dobong-gu and Gangseo-gu (each -0.66%), Guro-gu (-0.64%), and Gwangjin-gu (-0.59%). Generally, prices of older large complexes fell, and some areas were affected by pre-sale and upcoming move-in volumes.

Gyeonggi (-0.63%) continued its downward trend mainly in the outskirts of Danwon-gu in Ansan-si, Ilsanseo-gu in Goyang-si, and Gunpo-si, focusing on older buildings. Incheon (-0.29%) saw a notable decline in Michuhol, Bupyeong, and Dong-gu. Overall buying sentiment remains subdued due to concerns about further declines.

In the provinces, housing prices fell in areas with large supply volumes, but the decline slowed as urgent sale properties were exhausted. Daegu (-0.98%) was affected by price drops in Jung-gu, Dalseo-gu, and Suseong-gu; Ulsan (-0.72%) in Dong-gu and Buk-gu; and Chungnam (-0.37%) in Hongseong-gun and Gyeryong-si.

Last month, the nationwide comprehensive housing jeonse (long-term lease) price fell by 0.63%, narrowing the decline compared to the previous month (-1.13%). Seoul, the metropolitan area, and provinces fell by 0.62%, 0.73%, and 0.53%, respectively. The Real Estate Board stated, "The decline narrowed due to the exhaustion of urgent sale properties and migration demand in areas with favorable living conditions, while in Seoul, the downward trend continued mainly in older buildings in the outskirts or areas affected by move-in volumes."

Nowon-gu (-1.10%) saw a significant drop in jeonse prices mainly in Hagye and Junggye-dong, affected by upcoming move-in volumes. Dobong-gu (-0.98%) experienced declines in Banghak and Chang-dong older buildings, and Seongdong-gu (-0.78%) saw drops in mid-to-low price complexes in Hawangsimni and Haengdang-dong. Gangnam-gu (-0.68%) continued its decline mainly in Irwon, Gaepo, and Apgujeong-dong due to inventory accumulation. The situation was similar in the provinces. Daegu (-1.18%) mainly declined in Jung-gu and Dalseo-gu, Ulsan (-1.10%) in Buk-gu and Dong-gu, and Chungnam (-0.58%) in Hongseong-gun and Gyeryong-si.

The nationwide monthly rent price in April fell by 0.18%. In particular, in the metropolitan area, transaction sentiment was subdued due to economic recession and jeonse price declines, and concerns about non-return of jeonse deposits led to increased inquiries about monthly rent, which reduced the decline. Both Seoul (-0.14%) and the provinces (-0.12%) saw a decrease in the rate of decline.