Decline Worsens Mainly in Older Apartment Complexes
Monthly Rents Have Steadily Increased Since 2013
Although housing sales prices in the Gwangju area have continued to decline this year, monthly rents have shown a steady upward trend.
According to the "May National Housing Price Trend Survey" released by the Korea Real Estate Board on June 16, comprehensive housing sales prices (including apartments, multiplexes, and detached houses) in Gwangju and South Jeolla Province fell by 0.28% and 0.32%, respectively, compared to the previous month. The downward trend in Gwangju has continued since the end of last year, while in South Jeolla Province, it has persisted since March this year.
In Gwangju, Dong-gu (-0.47%) and Seo-gu (-0.43%) saw the largest declines, mainly in older housing complexes. Nam-gu (-0.18%), Buk-gu (-0.21%), and Gwangsan-gu (-0.24%) also experienced decreases. In South Jeolla Province, Gwangyang (-0.42%), Yeosu (-0.30%), and Suncheon (-0.27%) recorded declines as well.
In contrast, monthly rents for housing in Gwangju have continued a slight upward trend since October 2013. In May, Nam-gu (0.39%), Buk-gu (0.21%), and Seo-gu (0.18%) saw increases in that order. In South Jeolla Province, monthly rents have remained stable since last summer.
During the same period, national housing sales prices fell by 0.02%. While the rate of increase widened in school district areas such as the Seoul metropolitan area, Seoul, and Sejong, the decline in non-metropolitan areas expanded from 0.11% to 0.12%. Monthly rents rose by a national average of 0.05%, and the average for the five major metropolitan cities shifted from stability to an upward trend.
The Korea Real Estate Board analyzed, "While some upward transactions are occurring, mainly in newly built and reconstructed complexes in Seoul and the metropolitan area, in non-metropolitan areas, the downward trend continues due to declining demand for older properties and a growing wait-and-see attitude."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
