"Only Quick Sales Are Happening"... Apartment Prices Continue to Decline

Jeonse Prices Maintain Upward Trend
Waiting Buyers Shift to Monthly Rent and Jeonse Demand

Apartment viewed from Yongsan-gu, Seoul on the 5th. Photo by Jinhyung Kang aymsdream@

According to the nationwide weekly apartment price trend survey for the third week of February, sale prices fell by 0.05%, while jeonse prices rose by 0.02%. The weekly apartment sale price trend survey results released on the 24th by the Korea Real Estate Board showed that the nationwide weekly apartment sale price decline widened compared to last week (-0.04%).

The decline rates in the metropolitan area (-0.04%→-0.04%), Seoul (-0.03%→-0.03%), and provinces (-0.05%→-0.05%) all remained steady. A Korea Real Estate Board official stated, "There are purchase inquiries mainly for urgent sales, but the gap between sellers' desired prices has not narrowed, so the market remains cautious," adding, "In a market with mixed regional rises and falls, the decline continued due to intermittent urgent sale transactions."

Regarding the 14 districts in Gangbuk, it was explained that "transactions are sluggish, showing mixed trends by complex, maintaining a stable level," and "Seodaemun-gu (-0.08%) declined mainly in major complexes in Namgajwa-dong and Bukahyeon-dong, Dobong-gu (-0.08%) mainly in small to medium-sized complexes in Chang-dong and Banghak-dong, and Gangbuk-gu (-0.07%) mainly in major complexes in Mia-dong and Suyu-dong."

Concerning the 11 districts in Gangnam, it was analyzed that "Songpa-gu (0.01%) turned to an increase amid mixed rises and falls by complex," while "Guro-gu (-0.08%) declined mainly in major complexes in Sindorim-dong and Guro-dong, Gangseo-gu (-0.05%) mainly in Hwagok-dong and Yeomchang-dong, and Seocho-gu (-0.05%) mainly in older complexes in Jamwon-dong and Seocho-dong."

Meanwhile, Seoul apartment transaction volume exceeded 2,000 units last month for the first time in three months. This is attributed to the gradual decrease in mortgage interest rates, depletion of urgent sale properties, and the stimulation of buying sentiment by policy funds such as the newborn special loan. According to the Seoul Real Estate Information Plaza, the number of apartment transactions in Seoul in January (based on contract date) was 2,268 units, marking over 2,000 units for the first time in three months since October last year (2,337 units).

The nationwide weekly apartment jeonse price increase rate was 0.02%, expanding from last week's 0.01%. By region, the metropolitan area (0.05%→0.06%) saw an expanded increase, Seoul (0.05%→0.04%) saw a reduced increase, and provinces (-0.03%→-0.03%) maintained the same decline rate.

A Korea Real Estate Board official stated, "As the cautious trend in the sale market prolongs, sale waiting demand is continuously converting into jeonse demand," adding, "Jeonse price increases continued due to a shortage of supply mainly in preferred complexes such as those in good school districts and newly built large complexes within regions."