October Nationwide Housing Price Increase Narrows... Jeon-Wolse Rent Prices Rise Further

National housing sale prices continued to rise for the fourth consecutive month, although the rate of increase narrowed. In contrast, jeonse prices expanded their gains, rising for the third consecutive month.

Apartment buildings in downtown Seoul / Photo by Yonhap News

On the 15th, the Korea Real Estate Board announced that according to the nationwide housing price trend survey for October this year, the comprehensive housing sale price index (including apartments, row houses, and detached houses) rose by 0.20%, narrowing from the previous month's increase of 0.25%. Nationwide housing prices have been reducing their decline since January this year (-1.49%) and have maintained an upward trend since turning positive in July.

By region, the rate of increase narrowed in Seoul from 0.25% to 0.20%, in the metropolitan area from 0.42% to 0.32%, and in provincial areas from 0.10% to 0.09%. The Real Estate Board explained, "In the metropolitan area, inquiries for highly preferred complexes remain steady, but actual transactions are not easily completed due to the gap between buyers' and sellers' desired prices, resulting in a reduced rate of increase."

Within Seoul's autonomous districts, Seongdong-gu (0.48%) and Dongdaemun-gu and Yeongdeungpo-gu (each 0.45%) showed strength centered on preferred complexes, though the rate of increase slowed. Yongsan-gu (0.39%) experienced intermittent rising transactions in Ichon and Hannam-dong, but buyer inquiries have decreased, and Gangdong-gu (0.39%) is seeing a prolonged cautious stance among buyers in leading complexes driving the rise.

In Gyeonggi Province (0.52%→0.42%) and Incheon (0.19%→0.13%), the rate of increase also decreased compared to the previous month. In Gyeonggi, Hanam-si (1.29%), Dongan-gu in Anyang-si (1.23%), and Yeongtong-gu in Suwon-si (1.03%) saw increases, while Dongducheon-si (-0.27%) and Uijeongbu-si (-0.11%) were weak. In Incheon, Jung-gu (0.63%), home to Yeongjong New City, and Seo-gu (0.44%), which includes Cheongna New City, led the upward trend.

Provincial areas have risen for three consecutive months since turning positive in August, though the rate of increase has decreased. Among the five major metropolitan cities, Busan (-0.13%) saw a widened decline centered on Busanjin-gu (-0.70%) and Haeundae-gu (-0.25%), affected by new housing supply. Sejong also saw its rate of increase narrow from 0.38% in the previous month to 0.10% in October.

On the other hand, last month, the nationwide comprehensive jeonse price rose by 0.36%, expanding from 0.32% in the previous month. Seoul and the metropolitan area each rose by 0.41% and 0.65%, respectively. Provincial areas (0.09%) have risen for two consecutive months since turning positive in September.

In Seoul's northern area, rental inquiries centered on stations and large complexes led to significant increases in Seongdong-gu (1.04%), Dongdaemun-gu (0.65%), and Yongsan-gu (0.51%). In the Gangnam area, Yangcheon-gu rose by 0.61%, and Yeongdeungpo-gu (0.58%) and Songpa-gu (0.52%) also showed strength. Jeonse prices in Gyeonggi and Incheon rose by 0.90% and 0.34%, respectively. Although Daegu (-0.05%) declined mainly in older and mid-priced complexes in Jung-gu and Seo-gu, the overall rate of increase expanded due to rises in Daejeon (0.48%) and Chungbuk (0.26%).

The Real Estate Board stated, "Jeonse prices in the metropolitan area rose as the number of listings decreased mainly in complexes with favorable living conditions due to the autumn moving season and school district demand," adding, "Monthly rental demand is also increasing due to the impact of jeonse fraud and other factors."

In fact, nationwide monthly rent prices rose by 0.14% in October, expanding from 0.09% in the previous month. In the metropolitan area (0.23%), Seoul showed a change from 0.10% to 0.13%, Gyeonggi from 0.24% to 0.31%, and Incheon from 0.08% to 0.17%. Provincial areas (0.01%→0.06%) also saw an expanded rate of increase.