House Prices in 11 Districts South of Han River Also Decline... Shift to Downtrend After 33 Weeks

Seoul Apartment Price Increase Slows Further
'Hakgun' Yangcheon-gu Also Stable After 22 Weeks
Jeonse Prices Up 0.05%...Previous Week's Increase Continues

[Image source=Yonhap News]

[Asia Economy Reporter Moon Jiwon] The average apartment prices in 11 districts south of the Han River in Seoul have also turned to a downward trend. While the price decline in the Gangnam 3 districts (Gangnam, Seocho, Songpa) has deepened, the slowdown in the price increase in other areas is interpreted as having an impact. In particular, Yangcheon-gu, which had seen a large price increase, has also entered a flat trend, indicating that the impact of the December 16 real estate measures is growing.

According to the nationwide weekly apartment price trend survey for the first week of February released by the Korea Real Estate Board on the 6th, apartment prices in the 11 Gangnam districts fell by 0.01% compared to the previous week. This is the first time in 33 weeks since the fourth week of June last year that prices in the 11 Gangnam districts have turned downward.

The decline in the Gangnam 4 districts, where high-priced complexes are concentrated, also deepened. Gangnam-gu saw prices fall by 0.05%, compared to -0.03% the previous week, while Seocho-gu and Songpa-gu fell by 0.04% and 0.05%, respectively. The Korea Real Estate Board explained, "In the Gangnam 3 districts, the price decline deepened mainly due to the appearance of urgent sale properties in reconstruction complexes that had attracted a lot of investment demand."

In Gangdong-gu, some small and medium-sized complexes priced below 900 million won rose slightly, but the increase was limited to 0.01%, slowing down compared to 0.02% the previous week. Outside the Gangnam 4 districts, Yangcheon-gu (0.00%), which had seen a large price increase, turned flat for the first time in 22 weeks, and the price increase narrowed in most areas.

Seoul's prices rose by 0.01% compared to 0.02% the previous week. Although the upward trend in mid- to low-priced complexes continued, the buying demand decreased after the December 16 measures, showing a continuous slowdown in the price increase.

The 14 districts in Gangbuk rose by 0.04%. Areas with low price increases such as Nowon (0.07%) and Jungnang-gu (0.04%) continued their upward trend, while existing leading areas such as Mapo (0.04%), Yongsan (0.02%), and Seongdong-gu (0.03%) saw a decrease in buying demand, resulting in a reduced price increase.

(Data from Korea Real Estate Board)

Seoul apartment jeonse prices rose by 0.05%, the same as the previous week. Although the winter vacation moving demand has mostly ended, prices rose mainly in areas near subway stations or relatively affordable complexes due to demand from those living close to work, waiting for subscription, relocation due to redevelopment projects, and a sluggish sales market.

Among the 14 Gangbuk districts (0.06%), Mapo-gu (0.11%) saw price increases mainly in Gongdeok and Changjeon-dong, which have demand for proximity to work; Gangbuk-gu (0.09%) rose mainly in Mia-dong with buildings less than 10 years old; Seongdong-gu (0.08%) increased mainly in Geumho, Haengdang, and Hawangsimni-dong; and Nowon-gu (0.06%) rose mainly in Wolgye-dong.

Gangnam-gu (0.10%) saw price increases due to a shortage of listings in relatively lower-priced outer areas and relocation effects from redevelopment projects such as the Samik Apartments in Cheongdam-dong. Songpa-gu (0.08%) expanded its price increase due to a shortage of listings in Garak and Munjeong-dong. On the other hand, Gangdong-gu (-0.05%) saw a widened decline due to the influence of new housing supply such as Godeok Arteon.

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