"Listings Locked · Trading Volume Decrease" Seoul Apartment Prices Up 1.10% This Week

[Asia Economy Reporter Yuri Kim] The volume of apartment transactions in Seoul has significantly decreased not only in sales but also in jeonse and monthly rent markets. In the sales market, it has become difficult to finalize transactions as buyers and sellers have different price expectations, while in the jeonse market, the supply of listings is relatively more scarce compared to monthly rent. Additionally, with the spread of the novel coronavirus (COVID-19) and the government's implementation of social distancing level 2.5, there is a growing reluctance to show homes, causing increased anxiety among tenants who must move during the autumn moving season.

According to Real Estate 114 on the 4th, the sales prices of Seoul apartments rose by 0.10%, with reconstruction and general apartments increasing by 0.04% and 0.11%, respectively. Meanwhile, Gyeonggi and Incheon rose by 0.08%, and new towns increased by 0.05%.

In Seoul, the price increases were in the order of ▲Gangdong (0.26%) ▲Songpa (0.20%) ▲Seongbuk (0.18%) ▲Nowon (0.16%) ▲Yangcheon (0.15%) ▲Gwanak (0.12%) ▲Dobong (0.12%) ▲Dongdaemun (0.12%) ▲Jung-gu (0.12%). Although some demand in major Gangnam areas such as Gangdong and Songpa is cautious, the supply of properties for sale remains relatively scarce. Prices rose by 5 million to 35 million KRW in areas such as Godeok-dong Godeok Graciousium, Dunchon-dong Dunchon Prugio, and Amsa-dong Lotte Castle First. In Songpa, Garak-dong Garak Kumho, Munjeong-dong Olympic Family Town, and Sincheon-dong Jamsil Parkrio increased by 5 million to 25 million KRW. In Seongbuk, Hwal-gok-dong Dream Forest Prugio and Wolgok Doosan We've rose by 5 million KRW.

In new towns, the price increases were in the order of ▲Pyeongchon (0.09%) ▲Ilsan (0.07%) ▲Jungdong (0.07%) ▲Gimpo Hangang (0.07%) ▲Bundang (0.06%) ▲Dongtan (0.05%). In Pyeongchon, prices rose by 2.5 million to 7.5 million KRW in areas such as Pyeongchon-dong Kkum Hanshin, Kkum Donga, and Kkum Woosung. In Ilsan, Madudong Gangchon 2nd Hanshin, Juyeop-dong Gangseon 2nd Gyeongnam, Ilsan-dong Hugok 9th LG, and Lotte increased by 5 million to 10 million KRW. In Jungdong, Sangdong Hanarum Samhwan and Podo Samboyoungnam rose by 5 million KRW.

In Gyeonggi and Incheon, the price increases were in the order of ▲Gwacheon (0.18%) ▲Gwangmyeong (0.17%) ▲Seongnam (0.16%) ▲Hanam (0.16%) ▲Yongin (0.13%) ▲Guri (0.11%) ▲Gunpo (0.11%) ▲Namyangju (0.11%) ▲Anyang (0.11%) ▲Uiwang (0.11%). In Gwacheon, the price increase was led by Wondong Ramian Sure 3rd Complex (2,899 households), rising by 10 million KRW. In Gwangmyeong, Cheolsan-dong Prugio Haneulchae and Haan-dong Gwangmyeong Doosan We've Trageum increased by 2.5 million to 10 million KRW. In Seongnam, Dochon-dong Humansia Island Village 3rd Complex and Sangdaewon-dong Seongyeong rose by 5 million KRW.

In the metropolitan area jeonse market, the shortage of listings continues, with Seoul rising by 0.12%, Gyeonggi and Incheon by 0.08%, and new towns by 0.06%. The Seoul jeonse market has a limited number of listings, and social distancing measures have made it difficult to view homes. The price increases were in the order of ▲Gangdong (0.41%) ▲Songpa (0.24%) ▲Gwangjin (0.18%) ▲Nowon (0.17%) ▲Yangcheon (0.17%) ▲Guro (0.15%) ▲Dobong (0.15%) ▲Seongbuk (0.14%). In Gangdong, the increase was mainly in new buildings. Godeok-dong's Godeok Graciousium, Godeok Raemian Hillstate, and Godeok I-Park rose by 15 million to 25 million KRW. In Songpa, Jamsil-dong Woosung 1, 2, 3 complexes and Garak-dong Ssangyong 1st complex increased by 10 million to 20 million KRW. In Gwangjin, Gwangjang-dong Gwangjang Hyundai 5th Complex and Guui-dong Hyundai 6th Complex rose by 10 million to 15 million KRW.

In new towns, the price increases were in the order of ▲Ilsan (0.10%) ▲Bundang (0.09%) ▲Pyeongchon (0.08%) ▲Gwanggyo (0.08%) ▲Gimpo Hangang (0.07%) ▲Sanbon (0.06%) ▲Pangyo (0.04%). In Ilsan, Juyeop-dong Gangseon 14th Doosan and Janghang-dong Hosu 4th LG Lotte rose by 5 million to 7.5 million KRW. In Bundang, Yatap-dong Jangmi Hyundai increased by 10 million KRW, and Imae-dong Areum Poonglim rose by 5 million KRW.

In Gyeonggi and Incheon, the price increases were in the order of ▲Hanam (0.20%) ▲Gwacheon (0.17%) ▲Gwangmyeong (0.17%) ▲Uiwang (0.17%) ▲Yongin (0.14%) ▲Seongnam (0.13%) ▲Anyang (0.13%) ▲Namyangju (0.11%).

Yoon Ji-hae, Senior Researcher at Real Estate 114, said, "If transactions decrease and many properties flood the market, there is a high possibility of a downward trend in the future, but currently, the market is experiencing a decrease in transactions while the supply of properties remains scarce. Although the rate of price increase is slowing due to reduced transactions, the upward trend continues. Especially in the jeonse market, as demand increases during the moving season, the scarcity of listings is intensifying, which is expected to worsen the jeonse shortage."

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