Seoul Apartment Price Increase Slows for 3 Consecutive Weeks... Jeonse Also 'Taking a Breather'

First Week of New Year Korea Real Estate Board Survey: Seoul 0.07%↑
Stability Continues Since 12·16 Real Estate Measures Announcement
Seoul Jeonse Prices Slow Rise, Taking a Breather
However, Nationwide Apartment Jeonse Prices Increase More

View of nearby apartment complexes from Lotte World Tower in Jamsil, Songpa-gu, Seoul (Photo by Yonhap News)

[Asia Economy Reporter Moon Jiwon] The rate of increase in apartment sale prices in Seoul has slowed for three consecutive weeks. Since the government's real estate measures announced on December 16 last year, the continuous decrease in the rate of increase suggests that housing prices are entering a stabilization phase.

According to the nationwide weekly apartment price trend survey released by the Korea Real Estate Board on the 9th, the apartment sale prices in Seoul in the first week of January this year rose by 0.07%, slightly down from 0.08% the previous week.

The Korea Real Estate Board analyzed, "While some mid-to-low priced apartments, such as small-sized units or those in old outskirts, saw some price increases, the main areas and high-priced apartments that had been leading the upward trend saw a reduction in the rate of increase due to cautiousness caused by loan regulations, tax strengthening measures, and fatigue from price rises."

In the Gangnam 4 districts (Gangnam, Seocho, Songpa, Gangdong), the rate of increase decreased from 0.07% to 0.04%. The slowdown was most significant in Gangnam-gu (0.09%→0.05%), Songpa-gu (0.07%→0.04%), Seocho-gu (0.04%→0.02%), and Gangdong-gu (0.06%→0.05%). The sharp drop in purchase inquiries after the December 16 measures and the appearance of urgent sale properties in some reconstruction complexes seem to have influenced this.

Outside the Gangnam 4 districts, the rate of increase either shrank or remained steady in most Gangnam districts, but Guro-gu (0.11%) saw price increases mainly around the transportation hubs and schools in the relatively low-priced Gaebong and Gocheok-dong areas.

In the 14 northern districts of Seoul (0.07%), most districts saw a reduction in the rate of increase, but Mapo-gu (0.09%) experienced price rises mainly in Seongsan and Yeomni-dong. Gangbuk (0.09%), Seongbuk-gu (0.08%), and Seongdong-gu (0.07%) also had relatively larger increases.

The jeonse (long-term lease) prices of Seoul apartments rose by 0.15%, slowing down from 0.19% the previous week. Due to the winter vacation moving season and waiting demand for subscription, the upward trend continued mainly in major school districts or transportation hub areas with good access to downtown. However, after the New Year's holiday, most areas saw a reduction in the rate of increase as the market took a breather.

Jeonse prices rose in Gangnam-gu (0.41%) mainly in Daechi-dong, Seocho-gu (0.27%) mainly in Banpo, Seocho, and Bangbae-dong, and Songpa-gu (0.19%) mainly in Jamsil, Munjeong, and Garak-dong.

Nationwide, jeonse prices rose by 0.12% compared to the previous week, with the rate of increase expanding. Among major regions, Sejong (0.49%), Daegu (0.21%), Gyeonggi (0.17%), Incheon (0.17%), Ulsan (0.17%), and Daejeon (0.15%) saw increases, while Jeonbuk (-0.04%) and Gyeongnam (-0.01%) experienced declines.

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