National Housing Prices Fall for 3 Consecutive Months, Jeonse Rents Rise for 7 Consecutive Months

Korea Real Estate Board's 'February Nationwide Housing Price Trend Survey'
Clear Rise in Jeonse Prices in the Capital Area
Housing and Jeonse Prices Fall in Provinces

While nationwide housing prices have fallen for three consecutive months, jeonse prices have risen for seven consecutive months, according to a survey. On the 16th, the Korea Real Estate Board's 'February Nationwide Housing Price Trend Survey' reported that last month, nationwide housing (apartments, row houses, detached houses) prices fell by 0.14% compared to January.

The nationwide housing price change rates were -0.10% in December last year, -0.14% in January this year, and -0.14% in February, marking a decline for three consecutive months. Housing prices in the metropolitan area (-0.18% → -0.15%) and Seoul (-0.12% → -0.09%) continued their downward trend for three months in a row.

The Real Estate Board explained, "In a wait-and-see stance without active price adjustments between buyers and sellers, intermittent transactions centered on urgent sales are occurring, leading to ongoing price declines. However, in Seoul, the decline narrowed mainly in the Gangnam area, and in Incheon (-0.10%), the decline also lessened due to expectations from transportation network improvement plans."

In Seoul, Dobong-gu (-0.21%), Seongdong-gu (-0.16%), Gangseo-gu (-0.17%), Gwanak-gu (-0.14%), and Seocho-gu (-0.12%) experienced larger declines compared to other districts. Songpa-gu (0.00%) and Yongsan-gu (0.00%) showed no change.

As the government announced that it will freeze the actualization rate of publicly announced real estate prices at the 2020 level, on the 21st, sale and jeonse prices are posted at an apartment complex in Seoul. Photo by Jinhyung Kang aymsdream@

The decline in housing prices in provincial areas increased from -0.11% in January to -0.14% in February. Sejong fell by 0.95% due to an increase in supply, and Daegu (-0.43%) and Busan (-0.29%) also saw relatively large drops.

Nationwide jeonse prices rose by 0.03% in February compared to the previous month, marking a rise for seven consecutive months since August last year. By type, apartments (0.05%) saw the largest increase. Row houses fell by 0.03%, and detached houses (0.00%) remained unchanged.

In the metropolitan area, the increase expanded from 0.13% in January to 0.14% in February. In contrast, jeonse prices in provincial areas also fell. The decline widened from -0.03% in January to -0.08% in February in provincial areas.

In Seoul, Seongdong-gu recorded the highest increase at 0.69%. Nowon-gu (0.37%), Yeongdeungpo-gu (0.25%), Yongsan-gu (0.23%), Dongdaemun-gu (0.19%), and Dongjak-gu (0.17%) also showed upward trends.

Nationwide monthly rental prices rose by 0.10% compared to the previous month, marking seven consecutive months of increase since August last year.