Apartment Prices in Gangnam 3 Districts Show Slower Decline for 3 Consecutive Weeks... 'Daejeon·Cheongju' See Increased Rise

Seoul Apartment Prices Fall for 8 Consecutive Weeks
Decline Slows in Gangnam, Seocho, Songpa Districts
'Positive Factors' Boost Price Gains in Daejeon and Cheongju

[Asia Economy Reporter Moon Jiwon] Due to the government's continued 'housing price stabilization' policies and the economic downturn, apartment prices in Seoul have fallen for eight consecutive weeks. However, apartment prices in the Gangnam 3 districts (Gangnam, Seocho, Songpa), which serve as a leading indicator for nationwide housing prices, showed a narrowing decline for three consecutive weeks.

According to the Korea Real Estate Board's 'Weekly Apartment Price Trend for the 3rd Week of May' survey on the 21st, apartment prices in Seoul fell by 0.04% as of the 18th, the same as the previous week. This is interpreted as being influenced by the government's metropolitan housing supply measures announced on the 6th and other market stabilization policies, as well as the contraction of the real economy.

The Korea Real Estate Board explained, "Some complexes have absorbed urgent sale listings, raising expectations for price increases, but the market is showing a wait-and-see stance without chasing purchases."

Although the 11 districts south of the Han River still showed a clear downward trend, the decline in the Gangnam 3 districts narrowed again following last week. Over the past four weeks, Gangnam District showed a trend of '-0.27 → -0.23% → -0.15% → -0.13%', Seocho District '-0.27% → -0.24% → -0.16% → -0.14%', and Songpa District '-0.17% → -0.12% → -0.08% → -0.07%'.

This is interpreted as due to many urgent sale listings being traded in some apartment complexes ahead of the June 1st ownership tax imposition date, causing asking prices to rise. However, due to the economic downturn and concerns over the resurgence of COVID-19, there is almost no chasing buying, and some analyses suggest the decline could widen again.

Gangdong District (-0.06%) saw a larger decline compared to the previous week (-0.05%) as asking prices fell in some complexes priced below 900 million KRW. Guro District (0.06%) and Geumcheon District (0.01%) saw price increases mainly in mid-to-low-priced and subway station area complexes, while most other areas were flat or declined.

In Yongsan District, where buyer sentiment had focused following recent development plan announcements but was designated as a land transaction permission zone, the decline narrowed slightly, falling 0.04% compared to the previous week (-0.06%). Major northern districts such as Mapo (-0.06%) and Gwangjin (-0.03%) continued to show declines mainly in high-priced and older complexes.

Jungnang District (-0.01%) shifted to a decline as asking prices fell mainly in newly built complexes, while Dongdaemun District (0.00%) turned flat as some subway station area complexes showed price increases.

With Cheongju Ochang confirmed as the site for the large-scale national research facility, the multipurpose synchrotron radiation accelerator worth 1 trillion won, the Chungcheong region is expected to emerge as a key hub for future new industries. The photo shows a bird's-eye view of the synchrotron radiation accelerator. (Photo by Yonhap News)

Gyeonggi Province increased its rise to 0.13% compared to the previous week (0.10%). In Danwon District, Ansan (0.49%), prices rose mainly in areas with progress in redevelopment projects or transportation benefits, and in Guri City (0.36%), prices increased mainly near the planned Line 8 subway stations.

Suwon Paldal (0.27%) and Yeongtong District (0.22%) saw price increases mainly in complexes benefiting from the extension of the Shinbundang Line and the Indeogwon Line or relatively undervalued complexes, while Yongin Suji District (0.21%) showed upward trends in older complexes around Sanghyeon, Jukjeon, and Sinbong-dong.

Apartment prices also rose relatively significantly in areas with recent positive developments such as Daejeon and Cheongju.

Daejeon (0.27%) Dong District (0.56%) saw price increases centered on Hongdo, Sinheung, and Panam-dong amid the announcement of innovation city candidate sites. Seo District (0.38%) rose mainly in Dunsan and Wolpyeong-dong, where redevelopment expectations exist, and Daedeok District (0.31%) increased mainly in Shindae and Beopdong, which have favorable residential conditions.

Cheongju rose 0.60% this week following the positive news on May 8th of being selected as the site for a synchrotron accelerator. Cheongwon District (1.02%) saw expanded price increases mainly in Ochang-eup and Jujung-dong, while Heungdeok District (0.61%) rose mainly in Gagyeong-dong.

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