Reviving Apartment Market in the Seoul Metropolitan Area... Recovery in Both Sales and Jeonse Rentals

The apartment sales and jeonse (long-term lease) market in the Seoul metropolitan area appears to be reviving. In most areas of Seoul and Gyeonggi Province, the recent downward trend has slowed, and the market is on the verge of entering a stable phase.

Apartment complexes in the city viewed from Namsan, Seoul.
Photo by Yonhap News

According to Real Estate R114 on the 4th, the apartment sales price change rate in Seoul remained the same as last week at -0.01%. Reconstruction projects showed stability (0.00%) for three consecutive weeks, while general apartments fell by 0.01%. New towns shifted to stability (0.00%) for the first time in about nine months since last September, and Gyeonggi and Incheon decreased by 0.01%.

In Seoul, the number of areas with price declines decreased from 16 last week to 10. While price recovery is slow mainly in mid-to-low-priced and older complexes, the areas with declines were ▲Guro (-0.02%) ▲Geumcheon (-0.02%) ▲Nowon (-0.02%) ▲Dongjak (-0.02%) ▲Seongbuk (-0.02%) ▲Gangseo (-0.01%) ▲Dongdaemun (-0.01%) ▲Mapo (-0.01%) ▲Yangcheon (-0.01%) ▲Yeongdeungpo (-0.01%).

In new towns, ▲Ilsan (-0.01%) and ▲Sanbon (-0.01%) declined, while other areas remained stable (0.00%). In Gyeonggi and Incheon, prices fell in the order of ▲Uijeongbu (-0.04%) ▲Gunpo (-0.03%) ▲Incheon (-0.02%) ▲Goyang (-0.02%) ▲Yongin (-0.02%) ▲Uiwang (-0.02%) ▲Anseong (-0.02%).

Despite entering the seasonal off-peak period, demand in the jeonse market continued intermittently. Seoul's jeonse prices fell by 0.02% for the third consecutive week, while new towns and Gyeonggi-Incheon each dropped by 0.01%.

In Seoul, prices mainly declined in older complexes. By area, the declines were ▲Dobong (-0.09%) ▲Dongjak (-0.09%) ▲Mapo (-0.07%) ▲Guro (-0.05%) ▲Yangcheon (-0.03%).

In new towns, ▲Pangyo (-0.06%) ▲Pyeongchon (-0.03%) ▲Ilsan (-0.01%) fell. In Gyeonggi and Incheon, prices dropped in the order of ▲Goyang (-0.05%) ▲Anseong (-0.05%) ▲Namyangju (-0.03%) ▲Gunpo (-0.02%) ▲Gimpo (-0.02%) ▲Uijeongbu (-0.02%) ▲Bucheon (-0.01%) ▲Osan (-0.01%). Meanwhile, ▲Siheung (0.01%) saw a slight increase.