"Seocho Apartment Prices Fall Most in 3 Years and 5 Months... Buyer Caution Widens"

Weekly Apartment Price Survey by Budongsan114
Rising Trend Eases in 'Nodogang'
Seoul Housing Prices Fall for 4 Consecutive Weeks

[Asia Economy Reporter Yuri Kim] Seoul apartment prices have fallen for the fourth consecutive week. As the Gangnam area has entered a full-fledged decline phase, buyer caution has spread, dampening the upward momentum in non-Gangnam areas such as Nowon, Guro, and Dobong. Apartment prices in Seocho-gu dropped by 0.14%, marking the largest decline in 3 years and 5 months (since November 25, 2016, when it was -0.20%). House prices in Nowon-gu rose by only 0.05%, about one-third of the previous week's 0.14%. Meanwhile, Gyeonggi and Incheon still showed an upward trend, driven by low-priced buying demand mainly in some non-regulated areas.

According to Real Estate 114 on the 17th, the weekly change rate of apartment sale prices in Seoul was -0.04%, marking a decline for four consecutive weeks. Prices of reconstruction apartments fell by 0.15%, with the rate of decline narrowing compared to the previous week, but general apartments dropped by 0.02%, with the decline widening. New towns and Gyeonggi-Incheon rose by 0.01% and 0.06%, respectively.

In Seoul, the decline was centered on the Gangnam 4 districts (Gangnam, Seocho, Songpa, Gangdong), known for their concentration of "ultra-high-end apartments," and large apartment complexes in Yongsan. By region, prices fell in the order of Seocho (-0.14%), Gangnam (-0.12%), Gangdong (-0.11%), Songpa (-0.08%), and Yongsan (-0.01%). In Seocho, large apartment complexes such as Acro River Park Banpo in Banpo-dong, Raemian Banpo Prestige, and Jugong 1st Complex dropped by 25 million to 100 million KRW. In Gangnam, Raemian Bless Tige in Gaepo-dong, Raemian Daechi Palace 1st Complex, Hanbo Mido Mansion 1st, and Shinhyundai in Apgujeong-dong fell by 10 million to 100 million KRW. In Gangdong, new apartments such as Godeok Gracious and Godeok Raemian Hillstate in Godeok-dong decreased by 10 million to 20 million KRW. In Songpa, Jugong 5th Complex, Jamsil Els, Trizium in Jamsil-dong, and Jamsil Parkrio in Sincheon-dong dropped by 5 million to 25 million KRW. On the other hand, Gwanak (0.06%), Nowon (0.05%), Eunpyeong (0.04%), Seongbuk (0.04%), and Seongdong (0.04%) saw price increases.

In new towns, Sanbon (0.04%), Pyeongchon (0.03%), Bundang (0.01%), and Dongtan (0.01%) rose in that order. In Sanbon, demand continued for small and medium-sized units, with Jugong 11th Complex and Geumgang Jugong 9th Complex 2nd in Sanbon-dong rising by 1 million to 10 million KRW. In Pyeongchon, Hangaram Hanyang in Gwanyang-dong and Mugunghwa Geonyeong in Hogye-dong increased by 2.5 million to 10 million KRW. In Bundang, Mujigae Daerim and Mujigae LG in Gumi-dong and Mokryeon Hanshin in Yatap-dong rose by 5 million to 10 million KRW.

In Gyeonggi and Incheon, the upward trend continued mainly in areas with development benefits such as transportation networks or where low-priced buying demand flowed in. By region, prices rose in the order of Guri (0.10%), Incheon (0.09%), Gwangmyeong (0.09%), Gunpo (0.09%), Ansan (0.09%), Bucheon (0.08%), Yongin (0.08%), and Uiwang (0.08%). In Guri, due to the extension of Subway Line 8, Jugong 1st Complex in Inchang-dong rose by 10 million KRW. In Incheon, the market atmosphere continues with a combination of strong subscription market conditions and undervaluation perception. In Yeonsu-gu, Songdo-dong, Prugio Harbor View and Songdo The Sharp Green Walk 2nd, as well as Cheongna Xi in Seo-gu Cheongna-dong and Shinhyeon e-Pyeonhan Sesang Haneulchae, rose by 5 million to 10 million KRW.

The jeonse (long-term lease) market remains stable as existing tenants renew their contracts, resulting in scarce listings, but due to the impact of COVID-19, demand movement is limited. Seoul rose by 0.02%, the same as the previous week, new towns remained flat (0.00%), and Gyeonggi-Incheon recorded 0.01%.

In Seoul's jeonse market, prices rose mainly in older apartments with good access to the city center and relatively affordable prices. By region, increases were seen in Gangdong (0.11%), Seongbuk (0.11%), Dongdaemun (0.05%), Seongdong (0.04%), Yangcheon (0.03%), Dobong (0.02%), Seocho (0.02%), and Yeongdeungpo (0.02%). In Gangdong, Donga Highville in Cheonho-dong and Samik Green 2nd in Myeongil-dong rose by 5 million to 25 million KRW. In Seongbuk, Donam Samsung in Donam-dong, Raemian Wolgok 1st in Hawolgok-dong, and Raemian Gireum 1st in Gireum-dong increased by 5 million to 15 million KRW, mainly in medium to large units. In Dongdaemun, Doosan in Dapsimni-dong rose by 10 million to 20 million KRW. In Seongdong, Cheonggye Byeoksan and Geukdong Mirage in Hawangsimni-dong, and Seoul Forest Haengdang Prugio in Haengdang-dong increased by 5 million to 10 million KRW.

In new towns, listings remain scarce due to existing tenants renewing contracts, and with reduced demand, price changes were minimal. Ilsan rose slightly by 0.01%, while other new towns remained flat (0.00%). In Ilsan, Hugok 18th Complex Hyundai in Ilsan-dong and Moonchon 3rd Complex Woosung in Juyop-dong rose by 5 million KRW.

In Gyeonggi-Incheon, prices rose in the order of Uijeongbu (0.04%), Gunpo (0.03%), Siheung (0.03%), Uiwang (0.03%), and Pyeongtaek (0.03%). In Uijeongbu, medium to large units in Dream Valley in Singok-dong rose by 10 million KRW. In Gunpo, Mujigae Village Daerim in Dang-dong rose by 5 million KRW. In Siheung, Siheung Baegot Hanshin Rest Plus in Jeongwang-dong and Cheonggu in Janghyeon-dong increased by 5 million to 10 million KRW. In Uiwang, Chungmu Ssangyong in Wangok-dong and Dongbu Saerom in Poil-dong rose by 2.5 million to 10 million KRW. On the other hand, Gwacheon (-0.19%) continued its decline from the previous week. Due to the move-in of 1,571 units in Gwacheon Prugio Summit, Jugong 4th Complex in Byeolyang-dong was adjusted downward by 10 million KRW.

Yeo Kyung-hee, senior researcher at Real Estate 114, said, "With the ruling party's landslide victory in the 21st National Assembly general election, the metropolitan apartment market is expected to quickly enter a stabilization phase," adding, "The government's market stabilization policies, such as strengthening taxation on multi-homeowners, developing the 3rd new towns, and the price ceiling system for pre-sale prices, will also proceed with speed." Accordingly, there is an analysis that additional tax-avoidance listings from multi-homeowners who had been weighing the timing of sales are likely to appear in April and May.

The jeonse market showed a stable trend compared to early April due to reduced demand, but steady demand continues to flow in mainly for older apartments with good transportation conditions and affordable prices, so localized price increases are expected to be maintained.

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