Seoul Apartment Average Sale Price Falls for the First Time in 9 Months

Seoul Apartment 877.18 Million Won → 876.85 Million Won
Median Price Also Ends 8-Month Consecutive Rise
Still Higher Compared to One Year Ago
Gangnam 4 Districts Average Up 155 Million Won in One Year

[Asia Economy Reporter Moon Jiwon] The average sale price of apartments in Seoul has turned to a downward trend for the first time in nine months since June last year. The spread of the novel coronavirus infection (COVID-19), increased holding tax burdens, and loan regulations have overlapped, creating an atmosphere where real estate-related indicators are also turning negative (-).

According to the 'March Nationwide Housing Price Trend Survey Results' by the Korea Real Estate Board on the 2nd, the average sale price of apartments in Seoul slightly dropped from 877.18 million won in February to 876.85 million won last month. This is the first decline in prices in nine months after a sharp rise since June last year, when the price was 797.21 million won.

However, the price decline was limited to the Gangnam area, including Gangnam-gu, Seocho-gu, Songpa-gu, and Gwangjin-gu. The other 21 autonomous districts showed slight increases or remained flat, but the large decline in these four areas pulled down the overall average sale price.

In Gangnam-gu, the average sale price fell from 1.7552 billion won in February to 1.7494 billion won last month. Seocho-gu dropped from 1.77696 billion won to 1.7705 billion won during the same period, and Songpa-gu decreased from 1.2517 billion won to 1.24572 billion won. As a result, the median price of apartments in Seoul also ended its eight-month consecutive rise and fell to 839.37 million won. The median price is the price located exactly in the middle when housing prices are arranged in order.

Although the amount of the decline itself is not large, industry observers believe that the possibility of further decline is high as downward pressure on house prices has intensified since mid-last month. Previously, after the September 13, 2018 measures, house prices fluctuated for four months during the adjustment period and then began to fall significantly for five consecutive months starting January last year.

The supply-demand trend from the Korea Real Estate Board, which can predict future apartment price trends, has also been declining for three consecutive months: 118.7 in January, 111.7 in February, and 111.0 last month. A lower figure means supply has increased relative to demand. In the last week of last month’s apartment price fluctuation survey, Seoul maintained a flat trend for two consecutive weeks, standing on the brink of entering negative territory. An industry official said, "The economy itself is not good, and various indicators are increasing the outlook for a decline," adding, "Although it may not be a crash, an adjustment is inevitable for the time being."

However, despite this downward pressure, compared to the same month last year, apartment prices in Seoul remain at a high level. The average sale price of apartments in Seoul is 74.7 million won higher than in March last year. The increase in the Gangnam 4 districts (Gangnam, Seocho, Songpa, Gangdong) during this period reached 155.72 million won.

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