Nationwide Apartment Price Increase Pauses After 22 Weeks... Seoul's Rise Also Slows Down

Korea Real Estate Board 'Weekly Apartment Price Trends Nationwide for the Second Week of November'
Nationwide Apartment Jeonse Price Increase Rate at 0.04%

On the 24th, as apartment transactions shrink due to loan regulations and other factors, listings continue to accumulate. A real estate agency in Gangnam, Seoul, has flyers for sale and jeonse listings posted. Photo by Kang Jin-hyung

The nationwide apartment price increase has stopped after 22 weeks. While the sales and jeonse prices of apartments in Seoul maintained an upward trend, the rate of increase slowed. According to the "Weekly Apartment Price Trends Nationwide for the Second Week of November" released by the Korea Real Estate Board on the 14th, apartment sales prices nationwide showed no change compared to the previous week. This marks a flat trend (0.00%) after 22 weeks of continuous increase since the third week of June.

The local real estate market showed a downward trend, and the slowdown in the rise of apartment prices in the metropolitan area is attributed to weakened buying sentiment due to loan regulations. The sales price increase rate of Seoul apartments was 0.06%, down from 0.07% last week. Apartment prices in the metropolitan area rose by 0.03%, a smaller increase compared to 0.05% last week. In local areas, prices fell by 0.03%, deepening the decline from -0.02% last week.

Seoul continued its upward trend for 34 consecutive weeks. After recording 0.11% in the second week of October, the increase rates were 0.09% in the third week of October, 0.08% in the fourth week of October, 0.07% in the first week of November, and 0.06% this week, showing a reduction in the rate of increase for four consecutive weeks. A Korea Real Estate Board official explained, "In the Gangnam area redevelopment complexes, rising transactions continue, confirming demand, but in other areas, transactions are stagnant overall due to weakened buying sentiment caused by loan regulations."

By district, Gangnam-gu (0.19%), Seocho-gu (0.11%), and Yongsan-gu (0.10%) rose above the Seoul average. Guro-gu (0.01%), Gangbuk-gu (0.02%), Gangdong-gu (0.02%), Dongjak-gu (0.02%), and Dongdaemun-gu (0.02%) showed relatively low rates of increase.

In the metropolitan area, Gyeonggi Province's increase rate decreased from 0.04% to 0.02%, and Incheon showed a flat trend (0.00%) for the first time in 29 weeks since the fifth week of April.

Nationwide apartment jeonse prices maintained the 0.04% increase rate from last week. Seoul rose by 0.05%, a smaller increase compared to 0.06% last week. The metropolitan area showed the same increase rate (0.07%) as last week. A Korea Real Estate Board official explained, "In Seoul, rental demand for preferred complexes remains steady, but the rise in market loan interest rates and some price drops in certain complexes have slightly reduced the rate of increase."

Gangnam-gu (0.14%), Nowon-gu (0.13%), and Yeongdeungpo-gu (0.12%) increased. Ahead of the move-in of about 12,000 households to 'Olympic Park Foreon' this month, Gangdong-gu and Songpa-gu fell by 0.05% and 0.07%, respectively. Local areas rose by 0.01%, maintaining the same increase rate as last week.