Seoul Apartment Prices Down 0.01% for 2 Consecutive Weeks... Jeonse Prices on the Rise

"Shift from Purchase Demand to Jeonse Demand"
Number of Districts with Rising Jeonse Prices Increases by 11 Compared to Last Week

As demand for apartment purchases in Seoul shifts to the jeonse (long-term lease) market, apartment sale prices have fallen by 0.01% for two consecutive weeks, while jeonse prices have maintained an upward trend.

According to Real Estate R114 on the 13th, the rate of change in Seoul apartment sale prices for the second week of January was -0.02%. This marks a decline for two consecutive weeks following the previous week's -0.02%. General apartments fell by 0.01%, while redevelopment apartments showed no price change. By district, Dobong, Jung, and Jungnang saw the largest declines at 0.05%, followed by Songpa, Yangcheon, and Yeongdeungpo, which fell by 0.02%.

On the other hand, during the same period, Seoul jeonse prices rose by 0.02%. After two weeks of stability at 0.00% until the previous week, prices turned upward. The number of areas with rising jeonse prices increased from 2 last week to 13. Jungnang and Dobong led with a 0.08% increase, followed by Yeongdeungpo (0.07%), Seongbuk (0.06%), Mapo (0.06%), and Nowon (0.04%).

Real Estate R114 explained, “It appears that the increase in jeonse prices is due to more cases of purchase demand shifting to jeonse demand.”

New towns also showed a weak trend with a sale price change rate of -0.01%. Gwanggyo (-0.03%), Bundang (-0.01%), Pyeongchon (-0.01%), and Sanbon (-0.01%) declined in that order. Jeonse prices fell by 0.01%, marking a decline for two consecutive weeks. Gwanggyo (-0.05%), Sanbon (-0.04%), and Pyeongchon (-0.03%) dropped, while Dongtan rose by 0.04%.

In Gyeonggi and Incheon, sale prices remained flat at 0.00%. Osan (-0.04%), Siheung (-0.03%), Suwon (-0.01%), Hanam (-0.01%), and Icheon (-0.01%) declined. Yangju (0.05%), Pyeongtaek (0.05%), Guri (0.02%), and Ansan (0.01%) rose mainly in newly built apartments. Jeonse prices increased by 0.01%. Suwon (0.04%), Incheon (0.04%), Siheung (0.02%), Ansan (0.01%), and Guri (0.01%) rose, while Osan (-0.06%), Pyeongtaek (-0.02%), and Hanam (-0.01%) fell.

Real Estate R114 stated, “With the 'Housing Supply Expansion and Construction Industry Stabilization Plan' announced on the 10th, projects with business feasibility in central Seoul and redevelopment projects in first-generation new towns are expected to accelerate.” However, it added, “Considering the real estate market slowdown, loan limit reductions, and the need for legislative amendments, the effect of short-term supply activation and demand stimulation is expected to be limited.”

Seoul City approved the architectural plan for the reconstruction project of Sanggye Jugong Complex 5 at the 15th Architecture Committee meeting. The photo shows Sanggye Jugong Complex 5 in Nowon-gu, Seoul, on the 31st. Photo by Jinhyung Kang aymsdream@