National Apartment Prices Fall for 8 Consecutive Weeks... Jeonse Prices Continue to Rise

Sale Prices: Capital Region -0.06%, Seoul -0.04%, Provinces -0.03%
"Buyers remain cautious, transactions mainly for urgent sales"
Jeonse Prices: Capital Region 0.05%, Seoul 0.07%, Provinces -0.01%

Apartment sale prices nationwide have fallen for eight consecutive weeks. Meanwhile, jeonse prices have continued to rise for 26 consecutive weeks.

According to the "Weekly Apartment Price Trends Nationwide" released by the Korea Real Estate Board on the 18th, apartment sale prices nationwide in the third week of January (as of the 15th) fell by 0.04% compared to the previous week. Although the decline narrowed compared to last week (-0.05%), it marks the eighth consecutive week of decline since the last week of November last year.

By region, the Seoul metropolitan area and Seoul each fell by 0.06% and 0.04%, respectively, showing the same rate of decline as the previous week. Among Seoul’s autonomous districts, 14 districts in Gangbuk and 11 districts in Gangnam fell by 0.03% and 0.04%, respectively, while the decline in the four Gangnam districts?Seocho, Gangnam, Songpa, and Gangdong?widened from 0.05% to 0.06%. In particular, Songpa-gu recorded the largest drop among Seoul districts with a decline rate of 0.13%. Incheon’s decline widened from 0.04% to 0.05%, and Gyeonggi Province maintained the same 0.07% decline rate as last week.

In the provinces, the decline narrowed slightly from -0.04% to -0.03%. Most regions, including Sejong (-0.11%), Busan (-0.06%), Gyeongnam (-0.05%), Incheon (-0.05%), Jeju (-0.04%), Jeonnam (-0.04%), and Daegu (-0.04%), experienced declines, while Gangwon (0.03%) and Daejeon (0.02%) saw increases. Notably, Sejong’s decline widened to 0.11% from 0.09% the previous week.

The Real Estate Board explained, "Due to ongoing buyer hesitation amid market uncertainties, transactions are mainly occurring with urgent sale properties, and prices in some complexes have been adjusted downward, continuing the downward trend."

Nationwide apartment jeonse prices rose by 0.02% compared to the previous week, marking 26 consecutive weeks of increase. However, the rate of increase narrowed compared to last week (0.03%).

By region, the Seoul metropolitan area showed the same 0.05% increase as the previous week, while Seoul’s increase narrowed from 0.08% to 0.07%. The provinces shifted from a 0.00% increase to a 0.01% decline.

By city and province, Daejeon (0.11%), Gyeonggi (0.04%), Chungbuk (0.04%), Jeonbuk (0.04%), and Ulsan (0.02%) saw increases, whereas Chungnam (-0.05%), Daegu (-0.05%), Gyeongbuk (-0.04%), Busan (-0.04%), and Jeju (-0.02%) experienced declines.

The Real Estate Board stated, "Due to buyer hesitation in the sales market, prospective buyers are moving into the jeonse market, leading to continued price increases centered on complexes with high residential convenience. However, the rate of increase has somewhat slowed due to heightened price burdens and seasonal effects."