January Seoul Housing Price Increase Significantly Slows Down... Effect of 12·16 Measures

Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Moon Jiwon] This month, the rate of increase in Seoul housing prices has significantly slowed compared to the previous month. This is interpreted as being largely influenced by the cooling of the housing market following the announcement of the December 16 real estate measures last year.

According to KB Real Estate Live On's 'Monthly Housing Price Trend' on the 29th, Seoul housing prices rose by 0.48% this month, a decrease in the rate of increase compared to the previous month (0.7%).

In Mapo-gu (1.12%), the increase rate exceeded 1%, but in other areas such as Yangcheon-gu (0.95%), Gangnam-gu (0.85%), and Gangseo-gu (0.73%), the increase was below 1%, showing a slowdown in the rate of increase.

Demand in preparation for the winter moving season sharply declined after the December 16 measures, causing both listings and transactions to plummet simultaneously, which appears to have halted the upward trend.

By housing type, apartment prices in Seoul rose by 0.67%, detached houses by 0.37%, and row houses by 0.22%.

On the other hand, major areas in Gyeonggi Province, which are exempt from regulations, saw housing prices rise more compared to the previous month. Gyeonggi Province increased by 0.51%, up from 0.39% the previous month.

Suwon Yeongtong-gu (2.95%), Anyang Manan-gu (2.65%), Ansan Danwon-gu (1.95%), Yongin Suji-gu (1.01%), and Suwon Paldal-gu (0.90%) experienced significant price increases, while Pyeongtaek (-0.13%) and Icheon (-0.03%) were the only areas to decline.

Suwon Yeongtong-gu's price increase is analyzed to be driven by external investment demand due to the relocation of public institutions such as the GTX-C line, the new Gyeonggi Provincial Government building, the Bank of Korea Gyeonggi Headquarters, and the Korea Gas Safety Corporation.

In Suwon Paldal-gu, investor interest surged due to transportation benefits such as GTX, Shinbundang Line extension, Suwon tram, and redevelopment progress around Maegyo Station.

Seoul jeonse (long-term lease) prices rose by 0.29%, maintaining the upward trend from the previous month. This is believed to be due to supply shortages compared to the increasing demand during the school vacation period. Jeonse price increases were high in Gwangjin-gu (0.85%), Yangcheon-gu (0.74%), Gangnam-gu (0.69%), Gangseo-gu (0.65%), and Mapo-gu (0.45%).

In Gyeonggi Province, jeonse prices rose by 0.19%. Areas where sales prices increased, such as Suwon Yeongtong-gu (1.82%), Yongin Suji-gu (1.15%), Seongnam Bundang-gu (0.68%), Gwacheon (0.31%), and Suwon Gwonseon-gu (0.26%), also saw jeonse prices rise, while only Pyeongtaek (-0.41%) showed a decline.

In Seongnam Bundang-gu, the jeonse price increase continues as moving demand persists through January and February despite limited listings. KB Real Estate Live On explained, "Recently, with multi-homeowner transactions blocked, only real demand-driven movements are occurring, so the amount of jeonse supply offered by investors is also relatively low."

Due to the impact of the December 16 measures, the nationwide sales price outlook index also recorded 108, down from 111 last month, indicating a slowdown in the upward trend. This is the first time in 10 months since February last year that the increase in the sales price index has slowed.

Regions with an outlook index above the benchmark of 100 included Ulsan (119), Daejeon (119), Gyeonggi (117), Incheon (113), and Seoul (112). Among metropolitan cities, Gwangju (98) had the lowest outlook index, and among provincial areas, Gangwon (94) had the lowest.

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