Sejong Soars 1.09% on Policy Boost... Seoul Up 0.38%

Sejong Leads Nationwide Apartment Price Increase
Metropolitan Area Continues Upward Trend, While Regional Disparities Persist

In the second week of May, nationwide apartment sales prices rose by 0.22% compared to the previous week. Among all regions, Sejong recorded the highest increase, with sales prices rising by 1.09%.

According to Real Estate R114, apartment sales prices increased by 0.25% in the Seoul metropolitan area, 0.04% in the five major metropolitan cities, and 0.29% in other provinces.

Seoul and the metropolitan area, where demand and development issues are concentrated, as well as Sejong, which has favorable policy factors, showed a clear upward trend.

Seoul apartment sales prices rose by 0.38% compared to the previous week. The rate of change in Gyeonggi Province and Incheon was 0.09%.

On the other hand, in non-metropolitan areas, there were many regions that either remained firm or experienced a decline.

Out of the 17 cities and provinces nationwide, 14 recorded an increase, while 3 saw a decrease. The regions that declined were Jeonnam (-0.09%), Daejeon (-0.07%), and Jeju (-0.01%).

On a monthly basis, the nationwide rate of change in April was 0.45%, widening from March’s figure of 0.33%.

In the second week of May, nationwide apartment jeonse (long-term lease) prices rose by 0.04%. Although the upward trend has continued since the second half of 2023, the magnitude of the increase is relatively small.

The rate of change in jeonse prices in the metropolitan area was 0.06%. Seoul rose by 0.07%, while Gyeonggi and Incheon increased by 0.04%.

In the five major metropolitan cities, jeonse prices fell by 0.02%, while in other provinces they rose by 0.02%, indicating little movement in areas outside the metropolitan region.

Out of the 17 cities and provinces nationwide, 11 recorded an increase and 6 saw a decrease, with regions experiencing an increase outnumbering those with a decrease.

The regions with relatively larger increases were Jeju (0.21%), Chungnam (0.10%), Gyeongbuk (0.09%), and Seoul (0.07%), in that order.

Meanwhile, the nationwide jeonse price change in April was 0.22%, continuing a steady upward trend.

Yoon Jihae, head of the Research Lab at Real Estate R114, said, "Of the 23,000 apartment units scheduled for presale during the peak spring season in May, 17,000 are concentrated in the metropolitan area. As a result, construction companies are focusing their selective presales in regions with relatively low concerns about unsold inventory. Given that the current polarization is becoming entrenched rather than temporary, it is unlikely that the positive momentum in the metropolitan area will quickly spread to the rest of the country."