'Seoul and 수도권 Housing Prices Increase for 3 Consecutive Months... Regional Areas Show Slower Growth'

Korea Real Estate Board January Nationwide Housing Price Trends
Seoul Reconstruction Complexes, Gyeonggi Transportation Boon Areas
Apartment Prices Unstable as Buying Demand Revives

(Photo by Yonhap News)

[Asia Economy Reporter Moon Jiwon] Housing prices in Seoul and the metropolitan area have increased their rate of growth for three consecutive months. The buying demand has revived mainly in Seoul's redevelopment complexes, and the rise in housing prices in Gyeonggi Province, which benefits from transportation developments such as the Greater Train Express (GTX) lines, is also analyzed to have contributed to the increased rate of growth.

According to the nationwide housing price trend survey for January released by the Korea Real Estate Board on the 1st, the comprehensive housing sale price (including apartments, detached houses, and row houses) in Seoul rose by 0.40% compared to the previous month. After the growth rate increased from 0.16% in October last year to 0.17% in November, the rate of increase has grown for three consecutive months.

The Korea Real Estate Board explained, "Despite concerns about an economic downturn due to the implementation of credit loan management measures and the spread of COVID-19, prices in Seoul rose mainly in areas with expectations of progress in redevelopment projects." In fact, Seoul apartments have seen increased buying demand centered around the Gangnam 4 districts (Gangnam, Seocho, Songpa, and Gangdong) since the end of last year due to expectations of redevelopment progress.

Housing prices in the metropolitan area rose by 0.80%, expanding the rate of increase compared to the previous month (0.66%). In particular, apartment prices rose by 1.12%, a steeper increase than the previous month (0.94%). Gyeonggi Province rose by 1.11%, increasing the rate of growth for three consecutive months from 0.41% in October last year to 0.74% in November, 0.99% in December, and last month.

On the other hand, in the provinces, buying demand has slowed, and the rate of price increase has narrowed. This is interpreted as an effect of the government designating many major provincial areas as regulated zones in November and December last year. The housing price increase rate in the five major metropolitan cities in the provinces also decreased to 1.18% from 1.79% the previous month. This includes Ulsan (2.54% → 1.52%), Busan (2.12% → 1.34%), Daegu (1.59% → 1.15%), Gwangju (1.08% → 0.57%), and Daejeon (1.41% → 1.15%).

In the jeonse market, despite a nationwide shortage of listings continuing, the rate of increase in jeonse prices has narrowed. Seoul decreased from 0.63% to 0.51%, and Gyeonggi Province decreased from 1.00% to 0.76%. Incheon also rose by 0.82% last month, a smaller increase compared to 1.23% the previous month.

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