Seoul Rises 0.36% Week-on-Week
November Growth Slows Compared to Previous Month
Potential Influx of Buyers Expected After January
Apartment prices in Seoul rose by 0.36% compared to the previous week, marking a slight upward trend for two consecutive weeks. However, the monthly sales price growth rate stood at 0.79% last month, down from 1.61% the previous month, indicating a slowdown due to the impact of the October 15 real estate measures.
According to Real Estate R114 on December 7, apartment sales prices nationwide increased by 0.27% compared to the previous week.
By region, Seoul led the rise in housing prices in the greater metropolitan area with a 0.36% increase. In the third week of last month, apartment prices in Seoul fell by 0.05% compared to the previous week, marking a decline for the first time in 19 weeks, but rebounded in the fourth week. Since then, prices have continued to rise for two consecutive weeks.
In the greater metropolitan area, Gyeonggi Province and Incheon, as well as the metropolitan area as a whole, saw increases of 0.25% and 0.31%, respectively. In non-metropolitan areas, the five major metropolitan cities recorded a 0.16% rise, while other regions saw a 0.10% increase, indicating that most areas experienced a larger week-on-week increase.
By region, prices increased in the following order: Seoul (0.36%), Gyeonggi Province (0.29%), Busan (0.23%), Ulsan (0.21%), and Jeju (0.19%).
However, the impact of the October 15 measures led to a slowdown in the nationwide monthly apartment price increase last month. The nationwide apartment price growth rate last month was 0.56%, down from 0.75% the previous month. In Seoul, prices rose by 1.61% in October, but the growth slowed to 0.79% last month.
Jeonse prices showed an upward trend, especially in the greater metropolitan area. Seoul saw a 0.04% increase, the metropolitan area 0.05%, Gyeonggi Province and Incheon 0.05%, and the five major metropolitan cities 0.03%, all recording slight increases. Other regions remained flat at 0.00%. Among the 17 cities and provinces nationwide, 11 saw increases, 3 remained flat, and 3 saw decreases, indicating that upward momentum prevailed.
Experts noted that while the effects of the October 15 measures continue, attention should be paid to the direction of the market after January next year, when household loan restrictions are expected to be eased.
Yoon Jihae, head of research at Real Estate R114, said, "The effects of the October 15 real estate measures, classified as ultra-strong policies, are clear. However, the impact of such shock policies is usually most pronounced for one to two months (November to December), so from January next year, we expect a high possibility of increased demand from buyers waiting for the reset of the total household loan limit in the banking sector."
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