Seoul Apartment Prices Rise for 11 Consecutive Weeks
52.1% of Q2 Transactions Exceed 900 Million Won
Seoul apartment prices have risen for 11 consecutive weeks. Apartment prices in all 25 autonomous districts of Seoul also increased simultaneously for the first time this year. Since the second quarter of this year, the proportion of apartment transactions exceeding 900 million won, which are not affected by special Bogeumjari loans or newborn special loans, has also surpassed half.
According to the weekly apartment price trend survey by the Korea Real Estate Board (as of the 3rd) on the 6th, Seoul apartment prices rose by 0.09% compared to a week earlier. This marks the 11th consecutive week of increase. The rate of increase also grew by 0.03 percentage points compared to last week (0.06%).
Seoul apartment jeonse prices are also continuing their upward trend. Seoul jeonse prices rose by 0.1% compared to the previous week (0.1%), marking 55 consecutive weeks of increase. This is the third longest period of continuous increase in history. The longest record was 135 weeks from the third week of June 2014 to the second week of January 2017. The second longest was 134 weeks from the first week of July 2019 to the third week of January 2022.
The Korea Real Estate Board explained that the main cause of this rising trend in Seoul’s jeonse prices is the shortage of supply in newly built apartments, areas near subway stations, and large complexes preferred by buyers. Furthermore, it noted that due to this shortage, there is a noticeable trend of rising transactions even in older complexes where price increases had not been significant until now.
As Seoul apartment prices show strength, the proportion of apartment transactions exceeding 900 million won has also surpassed half since the second quarter of this year. According to the Ministry of Land, Infrastructure and Transport’s actual transaction price system on the 6th, among the total 7,450 apartment sales transactions reported in Seoul during the second quarter (April to June) up to the previous day, 3,885 transactions exceeded 900 million won, accounting for 52.1%. Previously, due to the influence of policy loans such as special Bogeumjari loans and newborn special loans, the proportion of transactions below 600 million won surged to 56.3% in the fourth quarter of last year (September to December).
By price range, the proportion of transactions exceeding 900 million won up to 1.5 billion won increased from 30.3% in the first quarter to 33.3% in the second quarter this year. The proportion of transactions exceeding 1.5 billion won also rose from 17.9% to 18.8%. In contrast, the proportion of transactions below 600 million won decreased from 24.4% in the first quarter to 21.1% in the second quarter, and transactions exceeding 600 million won up to 900 million won decreased from 27.4% to 26.7%, respectively.
Experts attribute the increase in transactions exceeding 900 million won, which are not eligible for policy fund support, to the recent stabilization of mortgage loan interest rates at commercial banks at around 3-4% per annum, which has restored overall buyer sentiment.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
