"Inventory Lockdown, Seller's Advantage Remains" Seoul Apartment Prices Up 0.11% This Week

Real Estate 114 Survey: Jeonse Prices Increase by 0.13% as Autumn Moving Season Begins...

[Asia Economy Reporter Yuri Kim] The volume of apartment sales transactions in Seoul is expected to drop significantly in August. After exceeding 10,000 transactions in June (15,589) and July (10,585), listings have been locked up. According to the Seoul Real Estate Information Plaza, the number of reported transactions as of August 28 stands at only 1,923, suggesting that even considering the 30-day reporting period, the volume will likely decrease by more than half compared to the previous month. However, the phenomenon of locked-up listings is creating a seller's market, maintaining an upward trend. Meanwhile, as the autumn moving season fully begins, the rise in jeonse (long-term lease) prices is becoming more pronounced. With an already scarce supply of jeonse properties and the spread of COVID-19, the upward trend in jeonse prices is expected to continue for the time being.

According to Real Estate 114 on the 28th, Seoul apartment sale prices rose by 0.11%, with reconstruction and general apartments increasing by 0.18% and 0.10%, respectively. Additionally, Gyeonggi and Incheon rose by 0.07%, and new towns increased by 0.06%.

In Seoul, the price increases were led by Gangdong (0.20%), Geumcheon (0.19%), Dobong (0.19%), Nowon (0.18%), Songpa (0.18%), Gwanak (0.17%), Gangnam (0.15%), Seongbuk (0.15%), and Guro (0.14%). In Gangdong, although demand was sporadic, the shortage of properties mainly in large complexes led to higher asking prices. Amsa-dong's Seonsa Hyundai, Dunchon-dong's Dunchon Prugio, and Godeok-dong's Godeok Raemian Hillstate rose by 10 to 30 million KRW. In Geumcheon, Siheung-dong's Gwanak Woobang and Nam Seoul Hillstate increased by 15 to 25 million KRW. Dobong saw increases of 2.5 to 10 million KRW in Chang-dong's Sanggye Jugong Complex 19, Dobong-dong's Seowon, and Ssangmun-dong's Hanyang 5th Complex.

In new towns, Paju Unjeong (0.10%), Pyeongchon (0.09%), Dongtan (0.09%), Bundang (0.08%), Ilsan (0.08%), Gwanggyo (0.06%), Pangyo (0.03%), and Sanbon (0.02%) saw price increases. In Paju Unjeong, Yadang-dong's Hanbit Village 1st Complex Hanla Vivaldi Central Park and Wadong-dong's Garam Village 8th Complex Dongmoon Good Morning Hill rose by 2.5 to 5 million KRW. Pyeongchon saw increases of 2.5 to 10 million KRW in Hogye-dong's Mokryeon 6th Complex Doosan, Pyeongchon-dong's Kkum Hyundai, and Gwanyang-dong's Gongjak Booyoung. Dongtan's Bansong-dong Siberdan World Meridian Bando Ubora and Neung-dong's Pureun Village Posco The Sharp 2nd Complex rose by 5 million KRW.

In Gyeonggi and Incheon, Hanam (0.28%), Gwangmyeong (0.15%), Uiwang (0.15%), Yongin (0.13%), Anyang (0.11%), Goyang (0.10%), Seongnam (0.10%), Namyangju (0.09%), and Suwon (0.09%) saw price increases. In Hanam, complexes with relatively recent move-in years led the price increases. Mangwol-dong's Misa Riverside Hoban Summit and Misa Riverside City Complex 19 rose by 10 to 20 million KRW. In Gwangmyeong, Cheolsan-dong's Cheolsan Raemian Xi, Gwangmyeong-dong's Gwangmyeong Haemoro Iyeon, and Ha-an-dong's e-Pyeonhan Sesang Centreville rose by 5 to 10 million KRW. Uiwang's Ojeon-dong Hanjin Rosehill and Naeson-dong Uiwang Naeson e-Pyeonhan Sesang increased by 5 to 10 million KRW.

In the metropolitan area's jeonse market, due to a shortage of jeonse listings, Seoul rose by 0.13%, while Gyeonggi, Incheon, and new towns increased by 0.09% and 0.08%, respectively.

In Seoul, jeonse properties are scarce overall, regardless of whether in Gangnam or non-Gangnam areas. Price increases were led by Geumcheon (0.50%), Gangdong (0.30%), Nowon (0.25%), Songpa (0.18%), Seongbuk (0.17%), Dobong (0.16%), and Dongdaemun (0.15%). In Geumcheon, Siheung-dong's Nam Seoul Hillstate rose by 10 to 25 million KRW. Gangdong's Amsa-dong Gangdong Hyundai Hometown and Godeok-dong Godeok Raemian Hillstate increased by 10 to 25 million KRW. Nowon saw a 10 million KRW rise in Gongneung-dong Gongneung Woosung and Sanggye-dong Boram. Songpa's Garak-dong Garak Kumho rose by 20 million KRW, and Sincheon-dong Jamsil Parkrio increased by 10 to 15 million KRW.

In new towns, Pyeongchon (0.10%), Bundang (0.09%), Ilsan (0.09%), Dongtan (0.09%), Gwanggyo (0.09%), Pangyo (0.08%), and Wirye (0.08%) saw increases. In Pyeongchon, Gwanyang-dong Gongjak Booyoung, Pyeongchon-dong Chowon Booyoung, and Hogye-dong Mokryeon 7th Complex Woosung rose by 5 million KRW. Bundang saw increases of 5 to 10 million KRW in Yatap-dong Jangmi Dongbu and Gumi-dong Mujigae 1st Complex Daelim. Ilsan's Baekseok-dong Baeksong 3rd Complex Woosung and Juyeop-dong Gangseon 15th Complex Boseong rose by 2.5 to 5 million KRW.

In Gyeonggi and Incheon, Hanam (0.30%), Gwacheon (0.21%), Gwangmyeong (0.20%), Yongin (0.16%), Seongnam (0.14%), Uiwang (0.14%), Bucheon (0.13%), and Suwon (0.13%) saw price increases. In Hanam, Seondong Misa Riverside City 2nd Complex Hanil Verace and Deokpung-dong Hansol Sol Park rose by 10 million KRW. Gwacheon's Wonmun-dong Raemian Sure 3rd Complex increased by 10 million KRW. Gwangmyeong's Ha-an-dong Gwangmyeong Doosan We've Trigeum and Cheolsan-dong Cheolsan Hanshin rose by 5 to 10 million KRW.

Yoon Ji-hae, Senior Researcher at Real Estate 114, analyzed, "The gap between the prices sellers want and buyers want has widened significantly, leading to intense cautiousness. However, due to the shortage of listings, the buying demand remains stronger (favoring sellers)." This explains why, despite a significant drop in transaction volume, the price increase trend continues. He added, "Due to consecutive real estate policies and the depletion of low-priced listings, buying demand has somewhat slowed, but abundant liquidity and unresolved demand for homeownership are still flowing into both subscription markets and existing housing markets, so it seems there is still a long way to go before a trend reversal to a decline."

He pointed out that the jeonse market, which was already scarce in listings, is likely to face intensified jeonse difficulties due to the shortage of listings (circulating volume) as the autumn moving season begins.

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