Korea Real Estate Board Weekly Apartment Price Trends for the Second Week of October
Provincial Apartment Sale Prices Declined, but Jeonse Prices Turned Upward
On the 15th, Seongsan Sijeong Apartment in Seongsan-dong, Mapo-gu, Seoul. Seongsan Sijeong Apartment is a complex completed in 1986, consisting of 33 buildings with up to 14 floors and 3,710 households. Photo by Jin-Hyung Kang aymsdream@
Although the buying momentum in the Seoul apartment market has slowed due to loan regulations, some reconstruction and newly built complexes have seen record-high transactions, leading to a slightly larger increase in sale prices. While apartment sale prices in provincial areas have fallen more sharply, jeonse prices have turned upward for the first time in about five months.
According to the 'Weekly Apartment Price Trends for the Second Week of October (as of the 14th)' released by the Korea Real Estate Board on the 17th, Seoul apartment prices rose 0.11% compared to the previous week, marking the 30th consecutive week of increase. A Korea Real Estate Board official explained, "Although overall buying sentiment is subdued and cautious due to fatigue from rapid price increases and the impact of loan regulations, the price rise margin has slightly expanded as record-high transactions occurred in some reconstruction-promoting and newly built complexes."
According to the Ministry of Land, Infrastructure and Transport's actual transaction price system, the Samboo Apartment in Yeouido-dong, Yeongdeungpo-gu, Seoul, which is scheduled to establish a reconstruction association next year, set a new record on the 1st when a 175㎡ unit was traded for 4.35 billion KRW. The Sibeom Apartment in the same neighborhood also recorded a new high on the 7th with a 156㎡ unit sold for 3.52 billion KRW.
The Eunma Apartment in Daechi-dong, Gangnam-gu, also set a record on the 4th when an 84㎡ unit was sold for 2.948 billion KRW. Looking at the rate of increase in Seoul apartment prices by district, Gangnam-gu, mainly driven by reconstruction-promoting complexes in Gaepo and Apgujeong-dong, rose 0.27%, showing the largest increase. It was followed by Yongsan-gu (0.19%), Seocho-gu (0.18%), Mapo-gu (0.18%), Seongdong-gu (0.16%), and Gwangjin-gu (0.15%).
Incheon (0.02%→0.06%) and Gyeonggi (0.04%→0.06%) also saw a somewhat larger increase compared to the previous week. In Gyeonggi Province, Seongnam’s Sujeong-gu (0.20%), Jungwon-gu (0.18%), and Hanam (0.17%) showed significant increases. Conversely, Gwangju (-0.15%) and Ilsanseo-gu, Goyang (-0.09%) experienced declines.
Unlike the metropolitan area, apartment prices in provincial areas fell 0.03%, a larger drop than the previous week (-0.02%). The largest declines were in Daegu (-0.11%), Busan (-0.07%), Jeju (-0.04%), North Gyeongsang (-0.03%), and Gwangju (-0.03%). Meanwhile, Jeonbuk (0.05%) continued its upward trend for the 11th consecutive week, and Ulsan (0.00%) and Chungnam (0.00%) remained flat.
In the jeonse market, the metropolitan area saw an increased rise, and provincial areas also turned to an upward trend. Nationwide jeonse prices rose 0.05% this week. With larger increases in Gyeonggi (0.08%→0.11%) and Incheon (0.20%→0.26%), the metropolitan area's rise expanded from 0.10% to 0.12%. Seoul’s jeonse prices, which have risen for 74 consecutive weeks, increased by 0.10%.
A Korea Real Estate Board official analyzed, "Although the shortage of listings in preferred complexes continues, mixed trends are observed as some complexes experience declining transactions due to fatigue from price increases."
Provincial areas turned to an increase of 0.01% compared to the previous week. This is the first rise in provincial jeonse prices in about five months since the third week of May (0.02%). By city and province, Gyeongnam (0.05%) and Busan (0.04%) rose. North Gyeongsang (0.00%), Jeonnam (0.00%), and Sejong (0.00%) remained flat. Daegu (-0.09%), Jeju (-0.04%), Daejeon (-0.02%), and Chungnam (-0.01%) declined.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
