"Rapid Sale of Gangnam Area Properties... Follow-up Buying Remains Quiet" Seoul Apartment Prices Down 0.04%

[Asia Economy Reporter Kim Yuri] This week, some urgent sale properties in the Gangnam area were traded, leading to a reduced decline in Seoul apartment prices. Major reconstruction apartments such as Eunma in Daechi-dong, Gangnam, and Jamsil Jugong Complex 5 in Jamsil-dong, Songpa, as well as general apartments like Jamsil Els, The Rescentz, and Trimage in Jamsil-dong, were absorbed through urgent sales. Some homeowners withdrew their listings or raised asking prices, but this did not lead to a follow-up buying spree.

According to Real Estate 114 on the 8th, despite the two-week price survey period due to the holiday, the Seoul apartment transaction price change rate recorded -0.04%, a smaller decline than two weeks ago (-0.07%). Reconstruction apartments and general apartments fell by 0.13% and 0.02%, respectively. Meanwhile, Gyeonggi and Incheon rose by 0.05%, and new towns remained flat (0.00%).

In Seoul, the decline narrowed as urgent sale properties released for tax savings were traded mainly in the Gangnam area, but the four Gangnam districts (Gangnam, Seocho, Songpa, Gangdong) still led the downward trend. By region, Songpa (-0.18%), Gangnam (-0.13%), Gangdong (-0.12%), Mapo (-0.09%), Seocho (-0.05%), and Dongjak (-0.02%) declined. Mapo, which had been on an upward trend, turned downward this week, and Dongjak showed fluctuations. Songpa fell 0.35% two weeks ago but the decline significantly slowed this week. Olympic Family Town in Munjeong-dong, Jamsil Jugong Complex 5, and Trimage in Jamsil-dong dropped by 10 million to 50 million KRW. Although some urgent sale properties were traded in Songpa's Jamsil Jugong Complex 5 and Trimage, the weak trend continued due to lack of follow-up buying. In Gangnam, Gaepo-dong Hyundai 3rd, Raemian Bless Tige, Daechi-dong Hanbo Midomansion 2nd, and Raemian Daechi Palace Complex 1 fell by 5 million to 75 million KRW. In Gangdong, Dunchon-dong Dunchon Jugong Complex 4, Godeok-dong Godeok Raemian Hillstate, and Myeongil-dong Raemian Myeongil Station Solvenue dropped by 10 million to 25 million KRW. Conversely, Nowon (0.19%), Gwanak (0.12%), Seodaemun (0.11%), Jungnang (0.08%), and Seongbuk (0.08%) rose.

In new towns, Jungdong (-0.05%) and Gimpo Hangang (-0.05%) declined. Jungdong and Gimpo Hangang fell mainly in large complexes. Jungdong Halla Jugong Complex 3 dropped about 10 million KRW, and Gimpo Hangang IPARK in Gurae-dong fell about 6 million KRW. On the other hand, Pyeongchon (0.04%), Ilsan (0.02%), and Bundang (0.01%) rose slightly. Other new towns remained flat (0.00%).

Gyeonggi and Incheon rose mainly in the southern Gyeonggi area. Su-Yong-Seong (Suwon, Yongin, Seongnam) still led the rise, but the increase is steadily slowing. By region, Osan (0.11%), Gunpo (0.09%), Seongnam (0.09%), Hwaseong (0.09%), Bucheon (0.08%), Yongin (0.08%), Anseong (0.08%), Namyangju (0.07%), and Suwon (0.07%) rose.

The jeonse (long-term lease) market remains stable due to low demand movement caused by the COVID-19 pandemic. Jeonse prices rose 0.02% in Seoul and 0.01% each in Gyeonggi, Incheon, and new towns.

In Seoul's jeonse market, Seongbuk (0.12%), Dongjak (0.11%), Seodaemun (0.09%), Seocho (0.09%), Yongsan (0.08%), Gangnam (0.07%), and Nowon (0.07%) rose. In Seongbuk, Jongam 2nd SK View in Jongam-dong, Gireum New Town Complex 10 (Laon You) in Jeongneung-dong, and Gireum New Town Complex 8 (Raemian) in Gireum-dong rose by 10 to 20 million KRW. In Dongjak, E-Pyeonhansesang Sangdo Nobility in Sangdo-dong and Heukseok Hangang Centreville in Heukseok-dong rose by 5 to 25 million KRW. In Seodaemun, DMC Hanyang and Bukgajwa Samho in Bukgajwa-dong, and Ssangyong Sweet Dot Home in Namgajwa-dong rose by 5 to 15 million KRW. Conversely, jeonse demand sharply decreased in Songpa (-0.16%), Yeongdeungpo (-0.04%), and Yangcheon (-0.02%), leading to declines.

In new towns, Gwanggyo (0.05%), Dongtan (0.03%), Ilsan (0.02%), and Pangyo (0.02%) rose, while Paju Unjeong (-0.04%) and Bundang (-0.01%) fell. In Gyeonggi and Incheon, Yongin (0.05%), Hwaseong (0.05%), Goyang (0.04%), Guri (0.04%), Gunpo (0.04%), Anyang (0.04%), and Gwangju (0.03%) rose. Conversely, Gwacheon (-0.33%) and Icheon (-0.04%) declined. Gwacheon continued its weak trend due to reduced jeonse demand and the move-in of about 3,400 households from last year to early this year.

After urgent sale properties were traded mainly in the high-priced Gangnam area, some homeowners raised asking prices again, but there is no follow-up buying momentum. The price decline is small compared to previous rises, and concerns about further declines seem to prevent hasty follow-up purchases. Lim Byung-chul, Senior Researcher at Real Estate 114, said, "With the National Assembly reorganized into a 'female-majority, male-minority' structure, it is expected that the government's real estate regulation policies will be strengthened. The announcement of the 'May 6 Metropolitan Housing Supply Plan,' which includes adding 70,000 households in downtown Seoul, is expected to reinforce the cautious buying sentiment."

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