"This Week's Apartment Prices in Gangnam 4 Districts: Quick Sale Listings Depleted, Decline Narrowed"

Real Estate 114 Survey: Gwangjin and Yangcheon Turn Down... Mid-Low Price Demand Sustains Metropolitan Area's Uptrend

[Asia Economy Reporter Yuri Kim] The decline in Seoul apartment prices has narrowed compared to the previous week. This appears to be due to the slowdown in the downward trend after some urgent sale properties in the Gangnam area, which had been leading the price drop, were sold out. Seocho-gu, which had shown a negative fluctuation rate for about two months since early March (as of March 6, 0.00%), turned stable this week. However, the price decline trend continues mainly for reconstruction and newly built high-priced apartments, as signs of follow-up buying remain faint. On the other hand, in the metropolitan area, demand has occasionally flowed into mid- to low-priced apartments with good transportation, expanding the price increase in areas such as Guri-si, Namyangju-si, and Uijeongbu-si.

According to Real Estate 114 on the 15th, the weekly change rate of Seoul apartment sale prices recorded -0.01%, a smaller decline compared to last week's -0.04%. Reconstruction apartments fell by 0.05%, significantly less than the previous week's -0.13%. General apartments decreased by 0.01%. In addition, new towns rose by 0.01%, and Gyeonggi and Incheon increased by 0.05% as transactions continued in some undervalued areas.

In Seoul, after some urgent sale properties were traded, the decline in the Gangnam area narrowed, but buyers remain cautious, and the price decline areas are expanding. By region, prices fell in the order of Gangdong (-0.11%), Songpa (-0.07%), Gangnam (-0.05%), Mapo (-0.02%), Gwangjin (-0.01%), Dongjak (-0.01%), and Yangcheon (-0.01%). In Gangdong, large complexes such as Godeok Gracious in Godeok-dong, Samik Green 2nd in Myeongil-dong, and Dunchon Jugong 4th complex in Dunchon-dong dropped by 5 million to 25 million KRW. In Songpa, Olympic Athlete Village in Bangi-dong, Jugong 5th complex and Jamsil Els in Jamsil-dong fell by 5 million to 25 million KRW. In Gangnam, Seonkyung 1st and 2nd complexes and Hanbo Mido Mansion 1st and 2nd complexes in Daechi-dong, and The H Honor Hills in Gaepo-dong decreased by 5 million to 25 million KRW. In Mapo, Mapo Raemian Prugio dropped by 5 million KRW. Meanwhile, Yongsan, which had shown a downward trend, maintained stability (0.00%) for two consecutive weeks due to news of the Yongsan Maintenance Depot site development. However, the impact of the designation of land transaction permission zones was not reflected in this survey result. Meanwhile, areas with many mid- to low-priced apartments such as Gangbuk (0.15%), Guro (0.08%), and Gwanak (0.07%) rose.

New towns rose in the order of Sanbon (0.04%), Jungdong (0.03%), Bundang (0.01%), and Dongtan (0.01%), while other new towns remained stable (0.00%). In Sanbon, Gaya 5th complex Jugong 1st in Sanbon-dong increased by 2.5 million to 5 million KRW. In Bucheon, Sangdong Hanarum Samhwan and Jungdong Boram Dongnam small and medium-sized units rose by 5 million to 10 million KRW. In Bundang, Gumi-dong Mujigae 3rd complex Shinhan, Geonyeong, and Bundang-dong Jangan Geonyeong increased by 5 million KRW.

In Gyeonggi and Incheon, while the price rise trend slowed in Suwon, Yongin, Seongnam, and Uiwang, areas with transportation benefits saw an expanded increase. By region, prices rose in the order of Guri (0.09%), Namyangju (0.09%), Ansan (0.09%), Hanam (0.09%), Uijeongbu (0.08%), and Anyang (0.07%). In Guri, Samho in Inchang-dong, Lucky in Sutaek-dong, and Topyeong Hanil in Topyeong-dong increased by 7.5 million to 12.5 million KRW. In Namyangju, large complexes such as Namyang i-Joheun Jip in Dasan-dong, Toegyewon Hillstate in Toegyewon-eup, and Doosan We’ve in Wabu-eup rose by 2.5 million to 10 million KRW. In Ansan, Gojan 5th Prugio and Laseong in Gojan-dong increased by 5 million to 10 million KRW due to the Shinansan Line benefit. In Hanam, where subway line 5 extension construction is underway, Hanam Xi in Deokpung-dong and Daemyeong Riverside Town in Sinjang-dong rose by 5 million to 10 million KRW.

The jeonse (long-term deposit lease) market saw price increases mainly in older apartments close to workplaces. Seoul rose by 0.03%, and new towns and Gyeonggi-Incheon rose by 0.01% and 0.03%, respectively.

In Seoul’s jeonse market, demand flowed into affordable older apartments, with increases in the order of Gangdong (0.26%), Gangbuk (0.18%), Gangseo (0.12%), Gwanak (0.12%), Jungnang (0.09%), Geumcheon (0.07%), and Yangcheon (0.06%). In Gangdong, Samik Green 2nd in Myeongil-dong and Seonsa Hyundai in Amsa-dong rose by 10 million to 15 million KRW. In Gangbuk, Buksan Live Park in Mia-dong, Hanil U&I, and Beondong Sol Green in Beon-dong increased by 5 million to 15 million KRW. In Gangseo, Ujangsan Hillstate in Naebalsan-dong and Gangnaru Hyundai in Gayang-dong rose by 5 million to 10 million KRW. In Gwanak, Sillim Hyundai in Sillim-dong and Samsungsan Jugong 3rd complex rose by 5 million to 15 million KRW. Conversely, Songpa (-0.02%) and Gwangjin (-0.02%) declined.

New towns rose in the order of Sanbon (0.04%), Ilsan (0.03%), and Pyeongchon (0.02%), while other areas remained stable (0.00%). Gyeonggi-Incheon saw increases in Hanam (0.08%), Yongin (0.07%), Namyangju (0.06%), Bucheon (0.06%), Gunpo (0.05%), Uijeongbu (0.05%), and Hwaseong (0.05%).

Although some urgent sale properties were traded in the Gangnam area of Seoul, follow-up buying is difficult. Yeokyunghee, Senior Researcher at Real Estate 114, said, "Since May, regulatory measures such as corporate housing transaction restrictions, strengthened pre-sale rights transfer restrictions, and land transaction permission systems have been introduced one after another, dampening buyer sentiment," adding, "With the resurgence of the novel coronavirus infection (COVID-19) and the growing outlook for prolonged economic recession, expectations for house price increases are also declining. Although large-scale benefits such as the development of the Yongsan Maintenance Depot and the groundbreaking of the Global Business Center (GBC) have been announced, buyer caution is expected to continue for the time being."

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