Seoul Apartment Prices Keep Falling... Increase in Jeonse Prices Also Slows Down

Last Year's 12·16 Real Estate Measures Continue to Impact
Especially Seocho-gu Returns to Stable Prices After 30 Weeks
Meanwhile, Gyeonggi-do Sees Expanded Apartment Price Increases
Suwon Paldal-gu Prices Rise by 1.02%

(Data from Korea Real Estate Board)

[Asia Economy Reporter Moon Jiwon] Both the apartment sale prices and jeonse prices in Seoul showed a slowdown in the rate of increase as of the 13th compared to the previous week. Analysts suggest that the real estate market is entering a stabilization phase after a boom period, due to the government's continued regulations such as last year's 'December 16 Real Estate Measures.'

According to the 'Weekly Apartment Price Trends Nationwide for the 2nd Week of January 2020' released by the Korea Real Estate Board on the 16th, Seoul apartment sale prices rose by 0.04%, down from 0.07% the previous week, indicating a reduced rate of increase. The rate of increase in Seoul apartment sale prices has slowed for four consecutive weeks since December 16 last year.

The Korea Real Estate Board explained, "Due to the impact of existing regulations including the December 16 measures and fatigue from price increases, most of the leading major complexes turned to a wait-and-see stance, resulting in stable or declining prices. Additionally, the potential for price increases in nearby and mid-to-low priced complexes also diminished, leading to a reduced rate of increase compared to last week."

Among the 11 districts south of the Han River, 10 districts saw a reduction in the rate of price increase. In particular, Seocho-gu shifted to a stable trend for the first time in 30 weeks since the third week of June last year. Gangnam-gu and Songpa-gu both saw prices rise by only 0.01% compared to the previous week.

Yangcheon-gu (0.07%) saw price increases due to the first phase of reconstruction safety inspections passing for Mokdong New Town Complex 6, and Gangseo-gu (0.06%) experienced price rises following news of development on the CJ site in Gayang-dong, but the rate of increase also slowed.

North of the Han River, Mapo-gu (0.09%) saw price increases mainly in station-area complexes such as Gongdeok and Changjeon-dong, and Jongno-gu (0.06%) experienced price rises driven by real demand centered on some small to medium-sized units in Changsin and Muak-dong, but most districts saw a reduction in the rate of increase.

(Data from Korea Real Estate Board)

Seoul apartment jeonse prices also continued to show a slowdown in the rate of increase, rising 0.11% compared to 0.15% the previous week. The Korea Real Estate Board analyzed, "Strong demand remained mainly in major school districts such as Gangnam and Mokdong, and large station-area complexes with good access to downtown, but the rate of increase narrowed due to the end of the winter vacation moving season and growing fatigue from price rises."

In the Gangnam 4 districts (Gangnam, Seocho, Songpa, Gangdong), the shortage of listings persisted mainly in major school districts. Jeonse prices in Gangnam-gu (0.23%) rose centered on Daechi and Irwon-dong, and in Seocho-gu (0.22%) around Banpo and Seocho-dong, but the rate of increase slowed.

Meanwhile, apartment sale prices in Gyeonggi-do rose by 0.18%, with the rate of increase further expanding.

In particular, Suwon Paldal-gu saw a relatively large price increase of 1.02% compared to 0.43% the previous week. The Korea Real Estate Board reported, "In Suwon Paldal-gu, prices rose mainly in areas with transportation benefits and redevelopment projects, and in Suwon Yeongtong-gu (0.91%), prices increased mainly in the old downtown and Gwanggyo New Town."

Additionally, in Yongin Giheung-gu (0.66%), prices rose mainly in older complexes in Gugal and Seocheon-dong; in Yongin Suji-gu (0.59%), prices increased mainly in Sinbong-dong with transportation benefits and Pungdeokcheon-dong with remodeling and development expectations; and in Suwon Jangan-gu (0.56%), prices rose mainly in highly preferred new and semi-new large complexes in Jeongja and Cheoncheon-dong.

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