December Housing Sales Prices Turn Down After 6 Months... Seoul Down 0.07%

December Nationwide Housing Price Trend Survey Results
National Housing Sale Prices Down 0.10%
Jeonse Prices Up 0.12%...Increase Rate Slows

In December last year, the nationwide housing sales price index rate of change turned to a downward trend. After continuing an upward trend since July last year, it shifted to a decline after six months.

2023 December Nationwide Housing Price Trend Survey Results (Data provided by Korea Real Estate Board)

According to the 'Nationwide Housing Price Trend Survey' released by the Korea Real Estate Board on the 15th, housing sales prices in December fell by 0.10%, while jeonse prices rose by 0.12% and monthly rents increased by 0.09%. Apartment sales prices dropped by 0.15%, with jeonse rising 0.21% and monthly rents up 0.14%.

Buying Caution Continues... Decline After Six Months

Looking at sales price trends by region, Seoul fell by 0.07%, the metropolitan area by 0.14%, and other regions by 0.07%. In November, the previous month, sales prices rose by 0.10% in Seoul, 0.06% in the metropolitan area, and 0.02% in other regions, but the buying caution deepened, leading to a shift to decline.

The Korea Real Estate Board explained, "Due to concerns over a slowdown in the real estate market, buying caution is deepening, and price adjustments downward continue mainly through urgent sales transactions. Incheon declined as supply increased and buying caution persisted, and Gyeonggi shifted to a downward trend as transactions focused on low-priced properties."

In Gyeonggi, sales prices are still rising in some areas such as Gwangmyeong and Anyang, but prices fell and turned downward mainly in Anseong, Gwangju, Dongducheon, Hwaseong, and major complexes in Ilsan Dong-gu.

In Seoul, declines were notable in Guro-gu (-0.26%), Nowon-gu (-0.22%), Dobong-gu (-0.14%), Mapo-gu (-0.13%), Dongjak-gu (-0.13%), Seocho-gu (-0.13%), and Seodaemun-gu (-0.07%). Yeongdeungpo-gu (0.07%) maintained mixed trends with rises in the Mullae, Yangpyeong, and Dangsan areas.

Chungbuk (0.17%) rose mainly in newly built complexes in Heungdeok-gu, Cheongju, and major complexes in Jecheon. Busan (-0.29%), Daegu (-0.23%) with many upcoming move-in units, and Jeju (-0.11%) saw significant declines, with an overall shift to decline.

December Nationwide Housing Jeonse Prices Rise 0.12%

December 2023 Nationwide Housing Price Trend Survey Nationwide Jeonse Price Index Trend (Data provided by Korea Real Estate Board)

Nationwide housing jeonse prices rose by 0.12%, but the increase was smaller compared to the previous month (0.27%). The metropolitan area rose 0.23%, Seoul 0.25%, and other regions 0.02%.

Jeonse prices in the metropolitan area continue to rise mainly in major complexes with favorable living conditions. In Seoul (0.25%), increases were centered in Yeongdeungpo, Yongsan, and Jongno-gu, while in Gyeonggi (0.29%), rises were focused in Yeongtong, Suwon, and Ilsan Seo-gu, Goyang. Only Incheon fell by 0.09%, as demand for jeonse in older housing decreased and areas such as Namdong-gu, Bupyeong-gu, and Yeonsu-gu shifted to decline, pulling down the overall metropolitan area increase.

In Seoul, jeonse prices surged ahead of the new school term. The areas with the highest increase rates were Seongdong-gu (0.44%), Yeongdeungpo-gu (0.43%), Nowon-gu (0.41%), Dongdaemun-gu (0.41%), Songpa-gu (0.39%), and Seocho-gu (0.35%).

In non-metropolitan areas, jeonse prices rose in Daejeon (0.51%) and Jeonbuk (0.16%), while Busan (-0.18%) and Gyeongbuk (-0.04%) declined.

The Korea Real Estate Board explained, "In Seoul, due to uncertainty in the sales market, some demand shifted to jeonse, and jeonse prices rose mainly in preferred complexes due to school district relocation demand. In Incheon and Gyeonggi, although some old downtown areas declined, jeonse prices rose mainly in major complexes with favorable living conditions."

Monthly Rent Increase Slowed... Metropolitan Area Up 0.18%

Nationwide monthly rent prices rose by 0.09%, with the increase slowing compared to the previous month. The metropolitan area rose 0.18%, Seoul 0.11%, and other regions 0.02%.

In Seoul, notable increases were seen in Seongdong-gu (0.39%), Yangcheon-gu (0.31%), Yongsan-gu (0.27%), Guro-gu (0.25%), Dongdaemun-gu (0.20%), Nowon-gu (0.20%), and Geumcheon-gu (0.15%).

In other regions, Daejeon (0.28%) and Daegu (-0.15%) had significant changes, with Chungnam (0.10%) rising mainly in Gyeryong and major complexes in Seobuk-gu, Cheonan, and Gangwon (0.09%) rising mainly in Chuncheon and Donghae.

The Korea Real Estate Board explained, "Monthly rent prices in Seoul rose as rental demand continued mainly for small to medium-sized units and large complexes in areas with favorable living conditions. In Incheon and Gyeonggi, monthly rent inquiries increased mainly around station areas with good proximity to workplaces, leading to rises."