Seoul Apartment Price Increase Slows for 2 Consecutive Weeks... Effect of 12·16 Measures

(Data from Korea Real Estate Board)

[Asia Economy Reporter Moon Jiwon] The rate of increase in Seoul apartment sale prices has slowed for two consecutive weeks. Analysts suggest that the housing prices, which surged after the government's December 16 real estate measures last year, are entering a stabilization phase.

According to the nationwide weekly apartment price trend survey released by the Korea Real Estate Board on the 2nd, as of December 30 last year, Seoul apartment prices rose by 0.08% compared to the previous week (0.10%), showing a decrease in the rate of increase.

In the Gangnam 4 districts (Gangnam, Seocho, Songpa, Gangdong), the apartment sale price increase rate dropped from 0.10% to 0.07%. Songpa District's increase slowed from 0.15% to 0.07%, Gangnam District from 0.11% to 0.09%, and Seocho District from 0.06% to 0.04%.

In other autonomous districts outside the Gangnam 4, most either saw a reduction or maintenance in the rate of increase, but Yeongdeungpo District experienced an expansion in the rate of increase, mainly in Shin-gil, Mullae, and Yeongdeungpo-dong areas, which have many mid-to-low-priced apartments or development prospects.

In Seoul, it appears that the government's strong regulations have influenced the reduction in the rate of price increases. The Korea Real Estate Board analyzed, "Due to strong regulations such as the December 16 measures, a cautious stance has deepened mainly for high-priced apartments, resulting in a reduced rate of increase for two consecutive weeks."

By province, Sejong (0.99%), Gyeonggi (0.17%), Daegu (0.14%), Daejeon (0.14%), and Ulsan (0.10%) saw increases, while Gangwon (-0.14%), Jeju (-0.03%), Gyeongbuk (-0.03%), Jeonbuk (-0.02%), and Gyeongnam (-0.01%) experienced declines.

Nationwide apartment jeonse (long-term lease) prices also rose by 0.11%, with the rate of increase shrinking compared to last week. The metropolitan area (0.17%→0.15%), Seoul (0.23%→0.19%), and provinces (0.10%→0.07%) all saw reduced rates of increase.

By province, Sejong (1.09%), Seoul (0.19%), Daejeon (0.18%), Ulsan (0.18%), and Gyeonggi (0.14%) increased, Gwangju (0.00%) remained flat, and Gangwon (-0.16%), Gyeongbuk (-0.04%), and Gyeongnam (-0.01%) decreased.

Regarding the reduced rate of increase in Seoul's jeonse prices, the Korea Real Estate Board explained, "Due to winter vacation moving season and new semester school district demand, as well as subscription waiting demand, the upward trend continued mainly in major school districts and well-located areas near subway stations. However, with the New Year's holiday approaching, most areas saw a reduction or maintenance in the rate of increase as a pause."

This content was produced with the assistance of AI translation services.