Housing prices in the Seoul metropolitan area, including Seoul, turned to an increase for the first time in 1 year and 4 months. The nationwide decline in house prices has narrowed for six consecutive months.
A view of downtown apartments from the observation deck of Lotte World Tower in Songpa-gu, Seoul. / Photo by Yonhap News
On the 17th, the Korea Real Estate Board announced that according to the nationwide housing price trend survey results for June this year, the comprehensive housing (apartments, multi-family houses, detached houses, etc.) sales price fell by 0.05%, reducing the decline compared to the previous month (-0.22%). Since January, when the rate of change was -1.49%, showing a smaller decline than the previous month (-1.98%), the downward trend has been slowing for six consecutive months.
By region, Seoul (-0.11% → 0.05%) and the metropolitan area (-0.18% → 0.03%) turned to an increase, and the provinces (-0.45% → -0.26%) also saw a smaller decline. In Seoul’s case, this is the first rise in a year since it was flat in June last year and fell by 0.09% in July. The metropolitan area last saw an increase of 0.03% in April last year.
In Seoul, Songpa-gu (0.93%), Gangnam-gu (0.45%), Seocho-gu (0.34%), and Gangdong-gu (0.14%) saw larger increases due to additional transactions in major complexes. Mapo-gu (0.16%) and Seongdong-gu (0.06%) also spread the upward trend to neighboring areas. Yongsan-gu (0.09%) rose mainly in Ichon and Dowon-dong.
Gyeonggi (-0.01%) showed increases mainly in new constructions in Hanam-si (1.20%), Gwangmyeong-si (1.01%), and Hwaseong-si (0.93%), while Incheon (0.06%) saw upward trends centered on complexes with good transportation and school districts in Yeonsu-gu (0.46%) and Jung-gu (0.42%). The Real Estate Board explained, "While some areas in the metropolitan region showed mixed trends due to the gap between buyers’ and sellers’ desired prices, overall, prices rose."
Among the five major metropolitan cities in the provinces, Busan (-0.29%), Daegu, and Gwangju (each -0.23%) showed notable declines. Sejong (0.79%) rose for the third consecutive month.
Last month, the nationwide comprehensive housing jeonse (long-term lease) price fell by 0.16%, narrowing the decline compared to the previous month (-0.31%). Seoul, the metropolitan area, and provinces fell by 0.06%, 0.09%, and 0.23%, respectively. The Real Estate Board said, "While the decline narrowed mainly in areas with favorable living conditions, in Seoul, the decline was centered on outskirts and older buildings; in Gyeonggi, it was focused on Yangju and Icheon-si, affected by new housing supply; and in Incheon, Michuhol and Bupyeong-gu continued to see a backlog of listings, causing declines."
In Seoul, the northern area showed mixed trends with Mapo-gu (0.09%) and Seongdong-gu (0.03%) turning to increases, but Dobong-gu (-0.32%) and Nowon-gu (-0.30%) declined. In the southern area, Geumcheon and Gwanak-gu (each -0.22%) showed declines, but overall, there was a 0.01% increase.
Jeonse prices in Gyeonggi and Incheon fell by 0.06% and 0.29%, respectively. In the provinces, areas affected by new housing supply continued to decline, with Daegu (-0.50%) and Ulsan (-0.41%) among those falling.
The nationwide monthly rent price in June fell by 0.09%. In the metropolitan area (-0.10%), fluctuations varied by region, with Seoul (-0.06% → 0.01%) turning to an increase, while Gyeonggi (-0.15%) and Incheon (-0.19%) declined. The provinces (-0.13% → -0.09%) narrowed the decline.
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