Seoul Apartment Jeonse Prices Rise for 60 Consecutive Weeks... Increase Rate Narrows in Last 2 Weeks

Decrease in Jeonse Listings Continues to Push Up Jeonse Prices
Increase Rate Declines for 2 Consecutive Weeks Due to Off-Season
Seoul Jeonse Prices Rise 0.02%, Same as Previous Week
Sejong's Sharp Rise Persists... Increase Rate Slightly Reduced

[Asia Economy Reporter Moon Jiwon] Due to the implementation of the Rent Stabilization Act, including the Jeonse rent ceiling system and the contract renewal request right system, the supply of Jeonse rental properties has decreased, causing Seoul apartment Jeonse prices to rise for 60 consecutive weeks. However, the rate of increase has slowed for two consecutive weeks due to the off-season effect.

According to the weekly apartment price trend for the third week of August announced by the Korea Real Estate Board on the 20th, Seoul apartment Jeonse prices rose by 0.12% compared to the previous week. Compared to last week's increase rate (0.14%), the rate of increase has slightly decreased.

Seoul apartment Jeonse prices have been rising continuously for 60 consecutive weeks since July 1 of last year without any decline, but the rate of increase has been gradually decreasing over the past two weeks.

Jeonse prices for apartments in the metropolitan area rose by 0.17%, which is lower than last week's (0.18%) but has been rising for 54 consecutive weeks since August of last year.

The Korea Real Estate Board analyzed, "The rise continued due to a decrease in Jeonse supply caused by the rent ceiling system, contract renewal rights, and strengthened residency requirements for reconstruction," but "the rate of increase narrowed due to seasonal off-season factors."

North of the Han River, Seongbuk-gu (0.16%) and Mapo-gu (0.15%) saw significant increases in Jeonse prices mainly in areas with good residential environments. Seongdong-gu (0.13%) rose mainly in newly built complexes in Wangsimni, Haengdang, and Geumho-dong, while Eunpyeong-gu (0.13%) increased mainly in newly built complexes in Eungam, Bulgwang, and Nokbeon-dong.

South of the Han River, Jeonse prices rose in all four Gangnam districts: Gangnam-gu (0.17%), Gangdong-gu (0.19%), Seocho-gu (0.17%), and Songpa-gu (0.16%), but the rate of increase slowed compared to the previous week.

Outside the Gangnam 4 districts, Gwanak-gu (0.10%) saw increases mainly in low-priced complexes with good transportation access, and Dongjak-gu (0.09%) rose mainly in Sadang and Sangdo-dong, but the rate of increase also narrowed compared to the previous week.

[Image source=Yonhap News]

Seoul apartment sale prices rose by 0.02% this week, maintaining the same rate of increase as the previous week.

Since the government announced the August 4 housing supply plan earlier this month, housing prices have been stabilizing mainly in high-priced complexes in the Gangnam 4 districts. The rate of increase in Seoul apartment sale prices has steadily decreased since August 6 last month: 0.11% → 0.09% → 0.06% → 0.04% → 0.04% → 0.02% → 0.02%.

Industry experts analyze that if the regulatory effects become more pronounced, the rate of increase in Seoul apartment sale prices could turn negative.

However, there is also a sense that prices are rising somewhat mainly in mid-to-low-priced and reconstruction complexes. The Korea Real Estate Board explained, "Gangbuk-gu (0.04%), Dobong-gu (0.02%), and Nowon-gu (0.01%) showed an upward trend mainly in mid-to-low-priced areas."

In the Gangnam 4 districts, a wait-and-see attitude has continued since the July 10 measures strengthened holding tax burdens on multi-homeowners. Gangdong-gu (0.01%) rose mainly in complexes around 900 million KRW, and Gangnam-gu (0.01%) increased mainly in Cheongdam-dong, but the rate of increase was not significant.

Seocho-gu (0.00%) and Songpa-gu (0.00%) showed mixed trends by complex and maintained a flat trend as in the previous week. Outside the Gangnam 4 districts, Gwanak-gu (0.04%) rose mainly in mid-to-low-priced areas of Sillim-dong and undervalued complexes in Bongcheon-dong, and Yangcheon-gu (0.04%) increased mainly in the Mokdong new town area with expectations of reconstruction progress.

In Gyeonggi-do, the rate of increase narrowed to 0.12% compared to last week's 0.15% as buying sentiment slowed due to the June 17 and July 10 measures.

Guri-si (0.40%) saw price increases due to development expectations around Taereung CC and Galmae Station areas, but Ansan-si (-0.03%) shifted from flat to decline as declining listings appeared in mid-to-low-priced complexes that had previously seen high increases due to transportation benefits.

Sejong-si, where sale prices have recently surged due to the administrative capital relocation issue, continued to rise across all areas, but the rate of increase slightly narrowed from 2.48% last week to 1.59% due to fatigue from the rapid rise.

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