"Tax Base Point Approaching, Where Are Seoul Apartment Prices Headed? -0.01% for 2 Consecutive Weeks"

[Asia Economy Reporter Yuri Kim] Seoul apartment prices continued their decline for the eighth consecutive week (-0.01%). However, the drop was limited, and general apartments, which had fallen for five consecutive weeks, recorded no change (0.00%). As the June tax reference point approaches, a tug-of-war for directional exploration is ongoing. However, with the government's continuous real estate regulations such as strengthening restrictions on resale of pre-sale rights in the metropolitan area after the general election and designating Yongsan as a land transaction permission zone, the atmosphere for chase buying remains limited.

According to Real Estate 114 on the 22nd, this week’s Seoul apartment transaction price change rate was the same as last week at -0.01%. Reconstruction apartments fell by 0.06%, a slightly larger drop than the previous week (-0.05%), while general apartments remained flat. Additionally, new towns rose by 0.01%, and Gyeonggi and Incheon increased by 0.05% as transactions continued in undervalued areas.

In Seoul, although bargain sales below market price occurred, the lack of chase buying has deepened the wait-and-see sentiment. However, last-minute sales by multi-homeowners aiming to reduce capital gains tax are expected to appear until June, leading to a continued price tug-of-war between sellers and buyers. By region, prices fell in the order of Songpa (-0.08%), Gangnam (-0.06%), Gwangjin (-0.03%), and Gangdong (-0.01%). In Songpa, Jamsil-dong’s Jamsil Els, Lake Palace, and Trizium dropped by 10 to 30 million KRW. In Gangnam, older apartments such as Apgujeong-dong’s Shin Hyundai and Gaepo-dong’s Jugong Complex 6 and Daecheong fell by 10 to 75 million KRW. Conversely, relatively undervalued areas like Guro (0.08%), Jung-gu (0.07%), Jungnang (0.04%), and Seodaemun (0.04%) rose. In Guro, Gaebong-dong’s Hyundai Complex 1 and Oryu-dong’s Dongbu Golden increased by 2.5 to 7.5 million KRW. Yongsan (0.00%), newly designated as a land transaction permission zone this week, showed no clear movement yet.

New towns rose in the order of Ilsan (0.03%), Pyeongchon (0.03%), Sanbon (0.02%), Gimpo Hangang (0.01%), and Pangyo (0.01%). In Ilsan, Baekseok-dong’s Heundol Complex 2 Cheonggu, Heundol Complex 1 Kumho Town, and Juyop-dong’s Gangseon Complex 6 Kumho Hanyang increased by 5 million KRW. In Pyeongchon, Hogye-dong’s Mugunghwa Kumho and Mugunghwa Gyeongnam rose by 5 million KRW. In Sanbon, Sanbon-dong’s Myohyang Lotte and Geumgang Jugong Complex 9 Phase 2 rose by 5 to 7 million KRW. Conversely, Bundang fell by 0.01%.

In Gyeonggi and Incheon, amid regulatory impacts, the housing price rise in the Su-Yong-Seong area (Suwon, Yongin, Seongnam) slowed, while undervalued areas with development and transportation benefits continued to rise. By region, prices rose in Namyangju (0.10%), Ansan (0.10%), Gwangmyeong (0.08%), Yangju (0.08%), Anyang (0.07%), Gunpo (0.06%), Uijeongbu (0.06%), and Hwaseong (0.06%). Conversely, Paju and Gwacheon fell by 0.05%.

The jeonse (long-term lease) market in Seoul showed a stable trend as the increase slowed from last week’s 0.03% to 0.01%. New towns and Gyeonggi-Incheon each rose by 0.02%.

In Seoul, prices rose in the order of Dobong (0.09%), Yongsan (0.07%), Seongbuk (0.06%), Jung-gu (0.06%), Jungnang (0.04%), and Guro (0.03%). With the required residence period for priority subscription extended to two years, some jeonse demand is flowing into Seoul. In Dobong, Chang-dong’s Sanggye Jugong Complex 17 and Sanggye Jugong Complex 19 rose by 5 to 7.5 million KRW. In Yongsan, following the government’s development plan announcement, subscription demand for residential purposes has increased, strengthening jeonse prices. Hannam-dong’s Hannam Hillstate and Hannam Licensia rose by 10 to 30 million KRW. In Seongbuk, Hawolgok-dong’s Wolgok Doosan We’ve, Dream Forest Prugio, and Raemian Wolgok Phase 1 rose by 2.5 to 5 million KRW. Conversely, Songpa fell by 0.06%.

New towns rose in the order of Ilsan (0.04%), Bundang (0.03%), Pangyo (0.03%), Sanbon (0.02%), Gwanggyo (0.02%), and Jungdong (0.01%). Gyeonggi and Incheon saw increases in Seongnam (0.10%), Uiwang (0.09%), Suwon (0.06%), Ansan (0.06%), Yongin (0.06%), and Gunpo (0.05%).

Due to government regulations, Seoul apartment prices have fallen for eight consecutive weeks, but after some bargain sales, the decline has somewhat slowed. Especially, unlike Seoul, where various regulations are concentrated, new towns and Gyeonggi-Incheon continue to show steady rises. Yoon Ji-hae, Senior Researcher at Real Estate 114, predicted, "The balloon effect in less regulated areas with many mid-to-low-priced apartments and relatively less price increases will continue a bit longer." Next week, an additional interest rate cut by the Bank of Korea is also expected. With liquidity effects from low interest rates and government regulations conflicting, demanders are expected to enter a wait-and-see stance for directional exploration.

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