Korea Real Estate Board Announces 'Weekly Apartment Price Trends Nationwide for Second Week of December'
Incheon Declines, Gyeonggi-do Stable, Seoul's Increase Slows
Nationwide Apartment Prices Fall for 4th Consecutive Week
Due to the impact of loan regulations and other factors, apartment transactions have slowed down, causing listings to continue to accumulate. On the 24th, sales and jeonse (long-term lease) flyers were posted at a real estate agency in Gangnam, Seoul. Photo by Kang Jin-hyung
The real estate market has been shrouded in uncertainty due to the unstable political situation surrounding the emergency martial law and impeachment crisis. With strengthened loan regulations reducing transactions and added political uncertainty, apartment prices in the Seoul metropolitan area have halted their upward trend after seven months. Within the metropolitan area, prices in Incheon fell, while Gyeonggi Province remained flat. Seoul prices are rising but the rate of increase continues to shrink. Nationwide apartment prices have declined for four consecutive weeks, with the drop widening.
Only Certain Complexes in Seoul Maintain Demand
According to the 'Weekly Apartment Price Trends Nationwide for the Second Week of December (as of the 9th)' released by the Korea Real Estate Board on the 12th, apartment prices in the metropolitan area stopped rising and remained flat for the first time in 30 weeks since the third week of May. Compared to the previous week, Gyeonggi Province (0.00%) remained flat, Incheon (-0.04%→-0.05%) saw a larger decline, and Seoul rose by 0.02%, but the increase was 0.02 percentage points less than the previous week.
With tightened loan regulations, demand is maintained only in some preferred complexes in Seoul, while a wait-and-see attitude has deepened around other complexes, creating a quiet atmosphere. Following last week, Gangdong-gu (-0.02%) declined, and Dongjak (-0.01%), Seodaemun (-0.01%), Eunpyeong (-0.01%), and Dongdaemun (-0.01%) also turned to declines. Jungnang and Seongbuk remained flat.
In Gyeonggi Province, areas with new constructions and development prospects saw price increases, but overall the market showed mixed trends. Anyang Manan-gu (0.12%), Suwon Jangan-gu (0.09%), and Gwacheon (0.07%) rose. However, Yongin Cheoin-gu (-0.07%) and Goyang Ilsanseo-gu (-0.05%) experienced relatively large declines.
Nationwide apartment sale prices fell by 0.03% compared to the previous week, with the decline widening from the previous week's -0.02%. This was influenced by a 0.05% drop in regions outside the metropolitan area. Among eight provinces, all except Chungbuk (0.00%) declined: Jeonbuk (-0.08%), Gyeongnam (-0.07%), Gyeongbuk (-0.06%), Jeju (-0.04%), Jeonnam (-0.02%), Chungnam (-0.02%), and Gangwon (-0.01%). Sejong City, which fell 0.09% last week, reduced its decline to 0.05% this week.
Jeonse Price Increase Also Slows
On the 7th, the day of the vote on the impeachment motion against President Yoon Seok-yeol, citizens are urging the impeachment of President Yoon in front of the National Assembly in Yeouido, Seoul. Photo by Kang Jin-hyung
Meanwhile, nationwide apartment jeonse (long-term lease) prices rose by 0.01%, a smaller increase than the previous week's 0.02%. The rise in Seoul (0.02%→0.01%) and the metropolitan area (0.03%→0.02%) slowed, and regions outside the metropolitan area (0.01%→0.00%) stopped rising and turned flat.
In Seoul, the upward trend continues mainly in preferred complexes such as new constructions and school districts. However, in some areas, transaction prices are being adjusted downward due to the impact of new housing supply. Gangnam and Seocho each rose by 0.07%, but Seongdong (-0.07%), Dongdaemun (-0.05%), and Jongno (-0.04%) declined. Gangdong-gu fell by 0.05%, marking its fifth consecutive week of decline.
By city and province, Ulsan (0.05%), Busan (0.04%), Gyeonggi (0.03%), and Gwangju (0.03%) rose; Chungbuk (0.00%) and Daejeon (0.00%) remained flat; Daegu (-0.07%), Jeju (-0.04%), Gyeongbuk (-0.02%), and Chungnam (-0.02%) declined.
Park Won-gap, Senior Real Estate Specialist at KB Kookmin Bank, said, "Until political uncertainty is resolved, the market will continue to show a correction phase with weak prices amid a transaction freeze. However, since we are in a phase of interest rate cuts and concerns about a supply shortage, prices are unlikely to fall significantly."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
