Following Incheon, Gyeonggi-do also declines
Seoul Metropolitan Area Apartment
Sale Prices Turn Down After 8 Months
Jeonse Prices Fall for the First Time in 1.5 Years
According to the KB Real Estate Weekly KB Apartment Market Trend report, last week Seoul apartment sale prices surged by 0.22% in just one week. On the 5th, apartment sale and jeonse prices were posted in the real estate market of Mapo-gu, Seoul. Photo by Kang Jin-hyung aymsdream@
Following Incheon, the apartment market in Gyeonggi Province has also begun to stagnate, leading to a simultaneous decline in both sale and jeonse prices of apartments in the Seoul metropolitan area. The impeachment crisis and loan regulations imposed by commercial banks have created uncertainty that has frozen the housing market.
According to the Korea Real Estate Board on the 26th, nationwide apartment prices fell by 0.03% this week, continuing a decline for six consecutive weeks, similar to last week. With Incheon and Gyeonggi Province showing weakness, the overall apartment prices in the metropolitan area, which were flat last week, dropped by 0.02% this week. This marks the first decline in about eight months since the fourth week of April this year (-0.01%).
Apartment prices in Gyeonggi Province fell by 0.02% compared to last week, marking a downturn for the first time in seven months since the third week of May (-0.01%). The decline was led by Pyeongtaek (-0.08%), Gwangju (-0.12%), Hanam (-0.08%), and Namyangju (-0.06%). Yongin City (-0.01%), which has special demand due to the semiconductor industrial complex development, also recorded a negative change rate for the first time in about six months since the second week of June last year (-0.02%), as apartment prices in Cheoin-gu fell by 0.11%.
Incheon fell by 0.10%, with the decline widening compared to last week (-0.09%). It was the second largest drop among metropolitan cities nationwide, following Daegu (-0.11%).
Apartment prices in Seoul rose by 0.01%, the same as last week. In the northeastern area, sale prices mostly declined or remained flat except for Seongdong-gu (0.02%). Seongbuk-gu, which rose by 0.01% last week, fell by 0.01% this week, marking the first decline in 41 weeks since the second week of March last year (-0.02%). Nowon-gu and Gangbuk-gu, which were flat last week, fell by 0.02% and 0.01% respectively this week, marking their first declines in about seven months since the second week of May last year (-0.01%). Gwangjin-gu, which had risen by 0.04% until last week, turned flat this week.
Apartment prices in the three Gangnam districts?Gangnam (0.03%), Seocho (0.06%), and Songpa-gu (0.04%)?continued a similar upward trend as last week. Gangdong-gu, which had shown a decline for three consecutive weeks due to the move-in of residents to Olympic Park Foreon in Dunchon-dong, stopped its decline this week (0.00%).
The jeonse market also showed signs of disappearance of the usual winter vacation moving season demand, as new contracts decreased. Nationwide and Seoul apartment jeonse prices remained flat for two consecutive weeks. In Seoul, Seongdong-gu fell by 0.06%, continuing a four-week decline, while Songpa-gu and Gangdong-gu (each -0.03%) saw continued jeonse price declines due to the move-in effect of Olympic Park Foreon.
Jeonse prices in Gyeonggi Province turned flat for the first time in a year and a half. This is the first time Gyeonggi Province has stopped rising since the second week of June 2023 (-0.02%). Incheon fell by -0.06%, doubling the decline compared to last week (-0.03%). As a result, the overall jeonse prices in the metropolitan area (-0.01%) also fell for the first time in about one year and six months since the second week of June 2023 (-0.01%).
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