'Dobong and Gangbuk' Prices Drop After 10 Months... Seoul Apartment Prices Fall for 7 Consecutive Weeks

Dobong and Gangbuk Districts Enter Decline Phase After Stable Period
Buyers' Market Continues Amid Government Regulations
However, Decline in Gangnam Area Slows... Speed Adjustment
Incheon, Daejeon, Sejong, and Gyeonggi Maintain Upward Trend

(Data from Korea Real Estate Board)

[Asia Economy Reporter Moon Jiwon] Due to the government's continued regulations and the economic downturn caused by the novel coronavirus disease (COVID-19), apartment prices in Seoul have fallen for seven consecutive weeks. Dobong and Gangbuk-gu, which had maintained a steady trend until last week, shifted to a downward trend for the first time in 10 months.

However, there is also a sense that asking prices are gradually rising as many urgent sale properties in the Gangnam area have been traded. In fact, apartment prices in the four Gangnam districts have seen a slowdown in the rate of decline for two consecutive weeks.

According to the Korea Real Estate Board's "Weekly Apartment Price Trend for the 2nd Week of May" on the 14th, apartment prices in Seoul fell by 0.04% compared to the previous week (-0.06%) as of the 11th.

It appears that the government's recent policies, such as the metropolitan area supply plan and strengthened restrictions on pre-sale rights transfers, along with the ongoing economic downturn caused by COVID-19, have had an impact.

The Korea Real Estate Board analyzed, "Although there was an upward movement as some urgent sale properties in certain complexes were absorbed, there was no subsequent follow-up buying," adding, "Overall, inquiries from buyers have decreased, and a cautious market between sellers and buyers has continued, resulting in Seoul maintaining a downward trend for seven consecutive weeks."

Apartment prices in the 11 districts south of the Han River fell by 0.06% compared to the previous week. Gangnam (-0.15%), Seocho (-0.16%), Songpa (-0.08%), and Gangdong-gu (-0.05%) experienced positive factors such as the groundbreaking of the Hyundai Motor Global Business Center (GBC) in Samseong-dong, but prices continued to decline as buyers still held the upper hand in most complexes.

However, the rate of decline narrowed in Gangnam, Seocho, and Songpa-gu compared to the previous week. This is because many urgent sale properties in Gangnam-area reconstruction complexes such as Eunma Apartment and Jamsil Jugong 5 Complex were traded, creating an atmosphere of rising asking prices. It is also analyzed that the approaching tax imposition date of June 1, which is the standard date for property tax, influenced the perception that urgent sale properties for tax-saving purposes might decrease.

Nevertheless, a clear downward trend remained in most autonomous districts of Seoul. Yongsan-gu (-0.06%) experienced a decline mainly in reconstruction complexes in Ichon-dong despite the positive development of the Yongsan Station maintenance depot, as a cautious stance generally continued. Mapo-gu (-0.07%) saw price drops mainly in new buildings in Ahyeon and Daehyeong-dong, and Nowon-gu (-0.02%) experienced declines mainly in older buildings in Sanggye and Wolgye-dong.

In particular, Dobong (-0.02%) and Gangbuk-gu (-0.01%), which had maintained a steady trend, shifted to a downward trend this week for the first time in about 10 months.

Apartment prices in other metropolitan areas such as Incheon and Gyeonggi-do rose further.

Incheon increased by 0.24% compared to the previous week (0.22%), expanding the rate of increase. Bupyeong-gu (0.38%) rose mainly due to transportation benefits and expectations of progress in redevelopment projects, and Gyeyang-gu (0.32%) increased mainly in complexes with redevelopment expectations in Hyoseong and Gyesan-dong.

Gyeonggi-do rose by 0.10%, the same as the previous week. In Yongin (0.10%) and Suwon (0.08%), the rate of increase slowed due to loan regulations, while Suwon Paldal-gu (0.29%) rose mainly in Wuman and Hwaseo-dong, which benefit from transportation improvements, and Yongin Suji-gu (0.18%) increased mainly in low-priced complexes in Sanghyeon and Jukjeon-dong.

Guri-si (0.38%) rose mainly in Inchang-dong, where there are expectations for transportation network expansion, and Namyangju-si (0.27%) increased mainly in areas such as Hopyeong-dong and Jinjeop-eup, which have transportation benefits.

Daejeon rose by 0.15% compared to the previous week (0.08%), also increasing the rate of growth. Seo-gu (0.26%) rose mainly in new buildings with pleasant residential environments such as Doan and Gwanjeo-dong, and Daedeok-gu (0.23%) increased mainly in Daehwa and Sindae-dong, where there are expectations for reconstruction. Sejong also rose by 0.09% compared to the previous week (0.08%) due to expectations for improved living conditions.

Meanwhile, Seoul's jeonse (long-term lease) prices rose by 0.02%, showing a stable trend. The Korea Real Estate Board explained, "Prices rose mainly in areas with relocation demand due to redevelopment projects, demand near subway stations, and demand for low-priced complexes, but the rate of increase was maintained due to new supply and seasonal off-season effects."

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