Seoul Gangbuk Apartment Prices Drop After 41 Weeks... 'Nodogang' Also Stagnates

Seoul Apartment Prices Fall 0.05%, Decline Widens
Nowon, Dobong, Gangbuk Shift to Stable After Leading Gangbuk Rise

[Image source=Yonhap News]

[Asia Economy Reporter Moon Jiwon] The economic downturn caused by the novel coronavirus infection (COVID-19) has deepened the decline in Seoul housing prices. Major apartment complexes in Mapo and Yongsan districts of Seoul continued to see asking prices fall, and areas such as Nowon and Dobong districts, which had previously driven housing price increases in northern Seoul, remained flat at 0%. As a result, Gangbuk-gu saw apartment prices turn to a downward trend for the first time in 41 weeks.

According to the Korea Real Estate Board's "Weekly Apartment Price Trends Nationwide for the 2nd Week of April 2020" survey on the 16th, Seoul apartment prices fell 0.05% as of the 13th, widening the decline from the previous week (-0.04%).

This appears to be influenced by the extension of social distancing due to the spread of COVID-19, government loan regulations, increased property tax burdens, and downward revisions of global economic growth forecasts. The Korea Real Estate Board analyzed, "Amid various downward factors expanding the wait-and-see sentiment, major areas in Seoul mostly traded through urgent sales, continuing a decline for three consecutive weeks."

In particular, Gangbuk-gu (-0.02%) saw apartment prices turn to a decline for the first time in 41 weeks since the first week of July last year. As asking prices continued to fall in representative apartment complexes in Mapo (-0.06%), Yongsan (-0.05%), and Seongdong-gu (-0.02%), and Nowon (0.00%), Dobong (0.00%), and Gangbuk-gu (0.00%) shifted to a flat trend, buyer sentiment continues to weaken.

The 11 districts south of the Han River fell 0.09% compared to the previous week. High-priced areas such as Gangnam (-0.27%), Seocho (-0.26%), and Songpa (-0.19%) saw buyer sentiment sharply weaken, with declines centered on major complexes. In these areas, listings also increased in relatively affordable outskirts.

Gangdong-gu (-0.03%) continued its decline as urgent sales occurred not only in high-priced complexes but also in some mid- to low-priced complexes. Gwanak-gu (0.05%) rose mainly in Bongcheon-dong, and Guro (0.04%), Gangseo (0.02%), and Geumcheon-gu (0.02%) increased mainly around subway stations, while other areas remained flat or declined.

(Data from Korea Real Estate Board)

Meanwhile, Incheon rose 0.15%, slightly increasing from the previous week (0.14%). Gyeyang-gu (0.32%) increased mainly in Yongjong and Gyesan-dong, where there is residential demand from industrial and logistics complexes, and Michuhol-gu (0.19%) rose mainly in new complexes such as Dohwa and Juan-dong. Bupyeong-gu (0.18%) increased mainly around Bugae and Sanggok-dong near Line 7, but Yeonsu-gu (-0.01%) declined due to the impact of new housing supply (Lake Songdo, 889 households).

Gyeonggi-do rose only 0.02%, narrowing from the previous week's 0.04% increase.

Guri-si (0.29%) rose mainly in Galmae District and Topyeong-dong, Suwon Yeongtong-gu (0.28%) increased mainly in Mangpo and Maetan-dong, and Paldal-gu (0.24%) rose mainly in Hwaseo-dong. On the other hand, Yangju-si (-0.30%) saw apartment prices fall for eight consecutive weeks due to new housing supply, and Gwacheon-si (-0.61%) continued its decline for 11 consecutive weeks due to strengthened subscription regulations.

Daejeon (0.06%) generally showed stability, with Dong-gu (0.19%) rising mainly in large complexes such as Samsung-dong, where there is anticipation for the innovation city, Seo-gu (0.08%) increasing mainly in Gwanjeo and Wolpyeong-dong, and Daedeok-gu (0.08%) rising mainly in new complexes in Seokbong-dong. Yuseong-gu (0.00%) remained flat.

Sejong City also rose 0.30%, up from 0.21% the previous week. The Korea Real Estate Board explained, "Due to the upcoming opening of Chungnam National University Hospital scheduled for June and the decrease in new housing supply, prices rose mainly in low-priced complexes on the outskirts of the city center and complexes with good accessibility to Daejeon."

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