Seoul Jeonse Prices Rise for 62 Consecutive Weeks... Increase Rate Gradually Shrinks

Since July Last Year, Jeonse Prices Rise Weekly
Rapid Surge After Lease Law Enforcement
Mattress Prices Stall Due to COVID-19 Impact

[Asia Economy Reporter Moon Jiwon] The jeonse prices of apartments in Seoul rose by 0.09% this week. Although the weekly increase rate has narrowed compared to the previous week, the upward trend has continued for 61 consecutive weeks since July last year. The sales prices rose by only 0.01% due to concerns about the real economy caused by the resurgence of COVID-19.

According to the weekly apartment price trend for the 5th week of August released by the Korea Real Estate Board on the 3rd, the jeonse prices of Seoul apartments increased by 0.09% as of the 31st of last month, narrowing from 0.11% the previous week.

The Korea Real Estate Board analyzed, "The upward trend continued mainly in areas with good educational environments or near subway stations, but the increase narrowed as trading activities shrank due to the implementation of social distancing level 2.5 following the resurgence of COVID-19."

Seoul apartment jeonse prices have been reducing their weekly increase from 0.17% on the 3rd of last month to '0.14% → 0.12% → 0.11% → 0.09%'. However, the upward trend has been maintained for 62 consecutive weeks since July last year.

In fact, since the end of July, the implementation of the 'Lease 2 Laws' including the Jeonse Rent Cap System and the Right to Request Contract Renewal has intensified instability, with jeonse prices surging mainly in the Seoul jeonse market.

In Seoul, the highest increase rates were observed in Gangdong-gu (0.17%), Mapo-gu (0.15%), Seongbuk-gu (0.15%), Gangnam-gu (0.13%), Seocho-gu (0.13%), and Songpa-gu (0.13%).

Additionally, Dongjak-gu (0.09%) saw price increases mainly in large complexes near Sangdo-dong subway stations and some new buildings in Heukseok-dong, while Yangcheon-gu (0.07%) experienced price rises mainly in the Mokdong New Town reconstruction complexes.

In Gyeonggi-do, although the shortage of listings generally continues, the price increase rate slightly narrowed from 0.22% to 0.21%. Paju-si (0.00%) showed a stable trend as about 3,000 new households moved in last July.

The apartment sales market in Seoul has sharply cooled due to the resurgence of COVID-19 and successive government measures.

The sales price increase rate remained at 0.01% following last week. The 7·10 measures, which strengthened holding tax burdens on multi-homeowners, have weakened buying demand in high-priced complexes in Gangnam and major reconstruction complexes, while the upward trend continues mainly in mid- to low-priced complexes under 900 million KRW.

The Korea Real Estate Board explained, "With buying demand shrinking and cautious sentiment deepening due to tax strengthening and other stabilization measures, Gangnam-gu (0.01%) saw increases in some complexes such as Apgujeong-dong, but Seocho-gu (0.00%) and Songpa-gu (0.00%) remained stable."

Gangdong-gu (0.00%) shifted to a stable trend after 12 weeks as buying demand weakened even in mid- to low-priced complexes that had shown an upward trend. Nowon-gu (0.02%) and Gangseo-gu (0.02%) saw increases mainly in mid- to low-priced complexes under 600 million KRW.

In Gyeonggi-do as well, buying sentiment weakened due to the 6·17 and 7·10 measures, causing the increase rate to slightly drop from 0.12% to 0.11%.

Sejong City, where sales prices had surged due to the administrative capital relocation issue, continued its upward trend in most areas due to a decrease in new housing supply, but buying demand declined due to short-term surge fatigue, causing the increase rate to fall from 0.66% to 0.51%.

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