Gangnam Apartment Price Decline Narrows... Seoul Housing Prices Fall for 6 Consecutive Weeks

Only Apartments in Guro-gu, Seoul Increase in Price
Some Urgent Sales in Gangnam Absorbed, Decline Narrowed
House Prices Continue to Rise in Incheon, Gyeonggi-do, Daejeon, and Sejong

Apartment complex view in Songpa-gu, Seoul on the 17th of last month (Photo by Yonhap News)

[Asia Economy Reporter Moon Jiwon] As the real estate market froze due to the economic downturn caused by the novel coronavirus infection (COVID-19) and government regulations, apartment prices in Seoul fell for six consecutive weeks. However, some urgent sale properties in the Gangnam area were absorbed, causing actual transaction prices and asking prices to rise slightly, reducing the overall price decline.

According to the 'Weekly Apartment Price Trend for the First Week of May' announced by the Korea Real Estate Agency on the 7th, as of the 4th, apartment prices in Seoul fell by 0.06% compared to the previous week (-0.07%).

This is interpreted as a result of the continued buyer wait-and-see sentiment due to the ongoing economic downturn caused by COVID-19 amid the government's housing price stabilization policies maintained since the April 15 general election.

The four Gangnam districts?Gangnam (-0.23%), Seocho (-0.24%), Songpa (-0.12%), and Gangdong (-0.05%)?saw actual transaction prices and asking prices rise as some urgent sale properties for property tax reduction were absorbed in certain complexes, but most complexes still experienced price declines, continuing the downward trend.

In Seoul, Guro District (0.08%) was the only area to see an increase, mainly in mid- to low-priced complexes such as Guro, Gocheok, and Oryu-dong. Yangcheon District (-0.07%) continued to decline as listings increased mainly in redevelopment complexes.

North of the Han River, Mapo (-0.07%), Yongsan (-0.06%), Seongdong (-0.02%), and Nowon District (-0.02%) also declined due to market uncertainty and weakened buyer sentiment.

On the other hand, Incheon and Gyeonggi Province continued to show increases following the previous week. Incheon rose 0.22% compared to the previous week (0.24%). Bupyeong District (0.36%) increased mainly in Bupyeong and Sanggok-dong, which have transportation benefits, and Yeonsu District (0.28%) rose mainly in small complexes in Okryeon-dong and Yeonsu-dong. Gyeyang District (0.26%) increased mainly around Bakchon and Yongjong-dong near the 3rd new town, and Namdong District (0.25%) rose centered on Guwol and Ganseok-dong.

Gyeonggi Province rose 0.10%, the same as the previous week. Suwon Paldal District (0.38%) increased mainly in some complexes with smaller gains, and Yongin Suji District (0.25%) rose mainly in non-station complexes in Sanghyeon and Jukjeon-dong.

Seongnam Sujeong District (0.33%) rose mainly in Sinheung and Dandae-dong, where redevelopment project expectations exist. Areas that had previously seen high increases such as Ansan (0.33%), Guri (0.23%), and Anyang City (0.20%) also maintained upward trends, but the rate of increase slowed due to concerns over real economy contraction.

Goyang Deogyang District (0.25%) expanded its rate of increase mainly in Samsong and Wonheung districts, where expectations for transportation network expansion exist.

Daejeon Daedeok District (0.15%) rose mainly in Daehwa and Beopdong, and Jung District (0.06%) increased mainly in some complexes on the outskirts of the district in Sanseong-dong. Dong District (0.13%) rose mainly in newly built large complexes in Sinheung-dong, but the rate of increase slowed due to short-term fatigue from rapid price rises. Sejong (0.08%) increased its rate of rise centered on Hansol and Sodam-dong within the Happy City and some older complexes in Jochiwon.

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