Gangnam and Gangbuk Apartment Prices Continue to Fall... Seoul Drops for 4 Consecutive Weeks

Seoul Apartment Prices Fall 0.05%
Post-Election 'Housing Price Stability' Policy Expected to Continue
Decline Persists as Gangnam Area Listings Increase
Incheon and Gyeonggi-do Maintain Upward Trend

[Image source=Yonhap News]

[Asia Economy Reporter Moon Jiwon] Following the ruling party's victory in the April 15 general election, the outlook that the 'housing price stabilization' policy will be maintained has increased, leading to a four-week consecutive decline in apartment prices in Seoul. Given the ongoing economic downturn caused by the novel coronavirus disease (COVID-19), this trend is expected to continue for the time being.

According to the Korea Real Estate Board's 'Weekly Apartment Price Trend for the 3rd Week of April' released on the 23rd, apartment prices in Seoul fell by 0.05%, the same as the previous week.

The Korea Real Estate Board analyzed, "Due to the expectation of maintaining a stabilization policy stance following the 21st general election results and the worsening economic indicators caused by COVID-19, a wait-and-see attitude is prevailing. Consequently, the decline continued for four consecutive weeks, mainly in reconstruction and high-priced complexes." It was explained that the International Monetary Fund (IMF) lowering South Korea's economic growth forecast for this year from 2.2% to -1.2% on April 14 also had an impact.

In the 14 districts north of the Han River, prices fell by 0.01% compared to the previous week as a wait-and-see attitude led to a backlog of listings, with declines continuing in major leading complexes such as Mapo (-0.07%), Yongsan (-0.05%), and Seongdong (-0.02%). Meanwhile, districts that had shown strength, including Nowon (0.00%), Dobong (0.00%), and Gangbuk-gu (0.00%), maintained a stable trend.

The 11 districts south of the Han River saw a 0.08% drop compared to the previous week. All four Gangnam districts?Gangnam (-0.25%), Seocho (-0.24%), Songpa (-0.16%), and Gangdong (-0.04%)?experienced continued declines as listings increased and buyers remained cautious after the election. The approaching June 1 ownership tax assessment date and the ruling party's landslide victory in the general election are believed to have influenced this trend.

Outside the Gangnam 4 districts, Yangcheon-gu (-0.05%) shifted to a downward trend mainly in the Mokdong New Town reconstruction complexes. Meanwhile, Gwanak (0.05%), Guro (0.04%), and Gangseo-gu (0.02%) saw slight increases, mainly in areas near subway stations.

(Data from Korea Real Estate Board)

In Incheon, prices rose by 0.23%, expanding from the previous week's 0.21% increase. Namdong-gu (0.30%) saw gains mainly in newly built complexes in Guwol and Ganseok-dong, benefiting from transportation (GTX-B) and redevelopment projects (Baegun Housing District 1). Yeonsu-gu (0.27%) rose mainly in Okryeon-dong, where transportation conditions are expected to improve, despite a slowdown in demand in Songdo New City. Bupyeong-gu (0.25%) increased mainly in Sangok-dong, benefiting from the extension of Subway Line 7.

Gyeonggi Province also rose by 0.11%, up from 0.09% the previous week. Suwon Paldal-gu (0.27%), which had been leading the rise in Gyeonggi, increased mainly in newly built complexes near Hwaseo Station. However, Jangan (0.00%), Gwonsun (0.00%), and Yeongtong-gu (0.00%) remained flat due to the contraction of the real economy.

Ansang (0.44%), Gwangmyeong (0.28%), and Siheung (0.21%) rose due to abundant transportation benefits, while Guri-si (0.30%) increased mainly in newly built complexes in Galmae District. Conversely, Bundang-gu in Seongnam (-0.08%) showed a decline, mainly in relatively high-priced mid- to large-sized units.

In Daejeon, Dong-gu (0.30%) rose due to expectations of attracting an innovation city and developing the Daejeon Station area. Seo-gu (0.12%) increased mainly in areas with redevelopment expectations, and Daedeok-gu (0.12%) rose mainly in Songchon-dong, which has good school districts and residential conditions. On the other hand, Yuseong-gu (0.00%) remained flat due to a contraction in transactions caused by COVID-19. Sejong rose by only 0.06%, compared to 0.18% the previous week.

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