Kim Hyun-mi Mentions 'August Statistics'... Seoul Apartment Price Increase Rate Halved

Korea Appraisal Board Reports Narrowed Increase in Seoul Housing Sale Prices in August
Apartment Sale Price Growth Rate Drops from 1.12% to 0.55%
Kim Hyun-mi: "Policy Effects... Reflected in Statistics After August"
However, Jeonse Market Instability Deepens... All 25 Districts Show Increase

Minister of Land, Infrastructure and Transport Kim Hyun-mi is responding at the full meeting of the Land, Infrastructure and Transport Committee held at the National Assembly on the 25th of last month. (Photo by Yonhap News)

[Asia Economy Reporter Moon Jiwon] In August, Seoul's housing sale prices rose by 0.42%, narrowing from the previous week's 0.71%. The apartment sale price increase rate was halved from 1.12% to 0.55%.

This is interpreted as a result of the sharp cooling of buying sentiment following the July 10 real estate measures and the August 4 housing supply announcement. Minister Kim Hyunmi of the Ministry of Land, Infrastructure and Transport previously stated that the effects of the measures would be reflected in the August statistics. However, Seoul's jeonse prices and Sejong City's sale prices still showed rapid increases, indicating instability.

According to the nationwide housing price trend survey results for August released by the Korea Real Estate Board on the 1st, Seoul's housing sale prices rose by 0.42%, reducing the rate of increase. This survey was conducted from July 14 to August 10, reflecting the impact of the July 10 measures and the August 4 housing supply expansion announcement.

The Korea Real Estate Board explained, "With buying sentiment weakened, the rate of increase narrowed across all 25 districts in Seoul," adding, "Gyeonggi Province (0.68%) and Incheon (0.19%) continue to see increases mainly in mid-to-low priced complexes, but the rate of increase has also narrowed due to market stabilization measures."

In fact, areas like Nowon and Dobong districts saw price increases mainly in mid-to-low priced complexes, while Gangnam, Seocho, and Yangcheon districts saw price rises mainly in reconstruction complexes, but overall buying demand decreased.

Notably, Seoul apartment sale prices, which surged by 1.12% in July, reduced their increase rate to 0.55% in just one month. Earlier, Minister Kim said at the National Assembly Land, Infrastructure and Transport Committee plenary session on the 25th of last month, "Looking at the August statistics, we can see the difference from the July market," and added, "Gap investments are decreasing, and many properties held by corporations are coming onto the market for sale."

The housing sale price increase rates also slightly slowed in Incheon (0.47%→0.19%), Gyeonggi Province (0.96%→0.68%), and Daejeon (0.82%→0.75%). However, in Sejong, where prices are soaring due to the administrative capital relocation issue, the increase rate expanded further from 5.38% to 7.69%.

(Data from Korea Real Estate Board)

Due to the implementation of the Jeonse Rent Cap System and the Contract Renewal Request Right System, jeonse prices in the Seoul metropolitan area, including Seoul, rose significantly.

Jeonse price increases expanded across the metropolitan area (0.42%→0.54%), Seoul (0.29%→0.43%), provinces (0.24%→0.34%), five major metropolitan cities (0.25%→0.36%), eight provinces (0.16%→0.21%), and Sejong (3.46%→5.78%).

The Korea Real Estate Board explained that the shortage of jeonse listings continues due to the enforcement of the Housing Lease Protection Act, the low interest rate environment, and strengthened reconstruction residency requirements.

In Seoul, all autonomous districts saw increased rates of rise, including Seongdong-gu (0.56%), Mapo-gu (0.49%), Nowon-gu (0.42%), Gangdong-gu (0.79%), Songpa-gu (0.78%), Gangnam-gu (0.72%), and Seocho-gu (0.65%). The apartment jeonse price increase rate in Seoul expanded from 0.45% to 0.65%.

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