Seoul Apartment Price Increase Rate Declines for Third Consecutive Week

Real Estate Board Weekly Apartment Price Trends for the First Week of November

Seoul Apartment Sale and Jeonse Price Increase Rates Decline

There is an apartment in downtown Seoul. Yonhap News

The decrease in the rate of increase in Seoul apartment prices, which began as loan regulations were tightened including the Stress Total Debt Service Ratio (DSR) Level 2, continued for the third consecutive week.

According to the Korea Real Estate Board's "Weekly Apartment Price Trends Nationwide for the First Week of November" released on the 7th, Seoul apartment prices showed an increase for 33 consecutive weeks. However, the rate of increase has been declining since the second week of last month. It was 0.11% in the second week of last month and slowed down to 0.07% this week.

An official from the Korea Real Estate Board said, "The increase in supply due to buyers holding back because of loan regulations has reduced the rate of price increase compared to last week."

By district, Gangnam (0.18%) and Seocho (0.14%) maintained the same rate of increase as last week, exceeding the Seoul average. Gwangjin (0.06%→0.08%), Yangcheon (0.05%→0.06%), Gwanak (0.02%→0.05%), and Geumcheon (0.02%→0.04%) saw slight increases in apartment price growth rates compared to the previous week. Meanwhile, Songpa (0.09%→0.06%), Seongdong (0.16%→0.14%), Yongsan (0.13%→0.11%), and Mapo (0.12%→0.09%) experienced a decrease in the rate of increase.

The metropolitan area rose by 0.05%, maintaining the same rate of increase as last week. Incheon (0.01%→0.02%) saw an expanded rate of increase, while Gyeonggi (0.05%→0.04%) saw a reduction.

Provincial areas fell by 0.02%, but the decline was smaller than the previous week (-0.03%). Notably, Sejong (-0.08%) showed a significant decline. This was at the same level as the previous week, reflecting the impact of new apartment move-ins in Sejong, which caused prices to drop mainly in older complexes such as Dodam-dong and Hansol-dong.

On a nationwide basis, the apartment price increase rate remained at 0.01%, the same as the previous week.

The rate of increase in jeonse (long-term lease) prices also narrowed. This week, Seoul apartment jeonse prices rose by 0.06%, down from 0.08% last week. The largest decrease in the rate of decline was in Seongdong (0.23%→0.12%). Jeonse prices fell in Guro (0.02%→ -0.03%) and Songpa (0.00%→ -0.03%).

The metropolitan area's increase rate dropped from 0.09% to 0.07% as the rate of increase in Gyeonggi (0.08%→0.06%) and Incheon (0.16%→0.14%) decreased.

Provincial apartment jeonse prices shifted from flat (0.00%) last week to a 0.01% increase this week. Nationwide, the rate changed from 0.05% to 0.04% during the same period.