The Market Is Confused... Korea Appraisal Board Reports Simultaneous Decline in Sale and Jeonse Price Growth Rates

Korea Appraisal Board October Nationwide Housing Price Trends Announcement
Most Regions Show Reduced Increase Rates in Sale and Jeonse Prices
Impact of COVID-19 and Chuseok... However, Market Remains Unstable

(Photo by Yonhap News)

[Asia Economy Reporter Moon Jiwon] According to statistics from the Korea Real Estate Board under the Ministry of Land, Infrastructure and Transport, the rate of increase in both sale prices and jeonse prices in Seoul narrowed in October. However, the upward trend continues, raising concerns that the housing cost burden on ordinary citizens is still growing.

According to the nationwide housing price trend data for October released by the Korea Real Estate Board on the 2nd, the nationwide housing sale prices rose by 0.32%, a smaller increase compared to last month (0.42%).

In the metropolitan area (0.43%→0.30%), Seoul (0.27%→0.16%), provinces (0.41%→0.34%), five major metropolitan cities (0.62%→0.55%), and Sejong (3.83%→1.43%), the rate of increase in housing sale prices generally decreased.

In Seoul, all 25 districts saw a reduced rate of increase as buying demand decreased mainly in high-priced reconstruction areas in the Gangnam area and a wait-and-see attitude deepened. In Gyeonggi Province (0.41%), the rate of increase narrowed mainly in Hanam, Yongin, and Gwangmyeong cities, where the rise had been high.

In districts such as Jungnang-gu (0.27%), Gwangjin-gu (0.23%), and Nowon-gu (0.22%), the upward trend continued mainly in mid- to low-priced complexes under 900 million KRW, but overall, the rate of increase decreased due to a stronger wait-and-see stance.

In particular, in the three Gangnam districts?Seocho (0.09%), Gangnam (0.07%), and Songpa-gu (0.06%)?buying demand significantly decreased mainly in high-priced reconstruction complexes with heavy property tax burdens.

Although the jeonse shortage has recently spread not only in Seoul and the metropolitan area but nationwide, the Korea Real Estate Board statistics also showed a narrowing in the rate of increase in jeonse prices.

The jeonse price increase rates were all reduced: metropolitan area 0.65%→0.56%, Seoul 0.41%→0.35%, provinces 0.41%→0.39%, five major metropolitan cities 0.50%→0.49%, eight provinces 0.24%→0.22%, and Sejong 5.69%→5.48%.

In Seoul, jeonse prices rose mainly in mid- to low-priced complexes or areas with good school districts and transportation conditions. In Incheon (0.68%), increases were centered on newly built complexes in Jung and Yeonsu districts, and in Gyeonggi Province (0.67%), mainly in Gwangmyeong and Suwon cities, but the rate of increase narrowed due to the Chuseok holiday and the impact of COVID-19.

In Seoul, Seongdong-gu (0.63%) and Nowon-gu (0.52%) had relatively high increase rates. Songpa-gu (0.41%), Seocho-gu (0.40%), and Gangnam-gu (0.39%) also continued to see upward trends in areas with good school districts and residential conditions.

Unlike the narrowed increase rates in sale and jeonse prices, monthly rent rose slightly.

Housing monthly rent prices in the metropolitan area narrowed from 0.17% to 0.15%, but in Seoul (0.10%→0.11%), provinces (0.09%→0.10%), five major metropolitan cities (0.10%→0.13%), and Sejong (1.08%→1.27%), the rate of increase grew.

The Korea Real Estate Board analyzed, "In Seoul, monthly rent rose mainly in areas near subway stations with good transportation and residential environments, and in Gyeonggi Province, monthly rent increased mainly in areas with rising jeonse prices, waiting demand for subscription, and transportation benefits."

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