After Supply Measures, Growing Cautious Sentiment... Gangdong Jeonse Prices Down for 2 Consecutive Weeks

Real Estate 114, Apartment Price Trends in the Seoul Metropolitan Area for the 2nd Week of March

[Asia Economy Reporter Kim Hyemin] Since the 2·4 supply measures, the apartment market in the Seoul metropolitan area has seen buyers adopting a wait-and-see stance amid concerns over the sharply rising prices. Both the sale and jeonse prices of apartments in Seoul have seen a reduced rate of increase for two consecutive weeks. Jeonse prices in Gangdong-gu have decreased for two consecutive weeks. However, as sellers are also not rushing to sell, the overall upward trend has continued.

According to Real Estate 114 on the 13th, the apartment sale prices in Seoul for the second week of March rose by 0.12% compared to the previous week, narrowing from last week's increase of 0.13%. General apartments rose by 0.12%, and reconstruction apartments increased by 0.13%, both showing a reduced rate of increase compared to the previous week. This marks a weakening of the upward trend for four consecutive weeks since the supply measures were announced last month.

Among the 25 autonomous districts in Seoul, 15 saw a reduced rate of increase compared to the previous week. However, Dobong-gu, an outer area of Seoul, saw a 0.38% rise, expanding the rate of increase. Real Estate 114 explained, "With growing expectations for reconstruction, the rate of increase expanded by 0.09 percentage points compared to the previous week." Chang-dong Sanggye Jugong Complexes 18 and 19, Jugong Complexes 3 and 4, and Dongik Park in Ssangmun-dong, which are undergoing preliminary safety inspections, saw price increases of 10 to 25 million KRW. Following were ▲Seodaemun (0.25%) ▲Songpa (0.25%) ▲Gangbuk (0.2%) ▲Nowon (0.2%) ▲Dongjak (0.16%).

New towns rose by 0.09% compared to the previous week, with a reduced rate of increase. The order was ▲Pyeongchon (0.27%) ▲Dongtan (0.17%) ▲Sanbon (0.13%) ▲Gimpo Hangang (0.09%). In Pyeongchon, prices rose by 5 to 10 million KRW in areas such as Choweon Sekyung and Hyangchon Hyundai 5th Complex, which are undergoing remodeling.

Gyeonggi and Incheon saw an expanded rate of increase of 0.18% compared to the previous week, driven by demand in undervalued areas. By region, the increases were ▲Yangju (0.56%) ▲Osan (0.43%) ▲Yongin (0.36%) ▲Uijeongbu (0.36%) ▲Siheung (0.28%).

The jeonse market in Seoul rose by 0.1% compared to the previous week, slowing from last week's 0.12% increase. However, Geumcheon-gu, an area with good access to the central business district, rose by 0.43%. Following were ▲Gwangjin (0.32%) ▲Seodaemun (0.23%) ▲Gangnam (0.18%) ▲Dongjak (0.18%). Gangdong-gu fell by 0.01% for the second consecutive week due to the influx of residents into large apartment complexes in the Godeok Gangil district.

New towns rose by 0.05% compared to the previous week. However, Wirye and Bundang in new towns fell by 0.03% and 0.01%, respectively. Gyeonggi and Incheon rose by 0.1%, but Uiwang and Gwacheon fell by 0.11% and 0.04%, respectively.

Ye Kyung-hee, chief researcher at Real Estate 114, said, "Since the 2·4 measures, buyers have adopted a wait-and-see approach, causing apartment transactions in Seoul to slow down. However, amid growing fallout from the Korea Land and Housing Corporation (LH) speculation scandal, concerns about delays in housing supply in new towns are increasing, making it noteworthy how the previously cautious demand will move."

Regarding the jeonse market, she added, "As demand decreases, urgent landlords are lowering prices to put properties on the market, causing some areas to turn weak. There is a trend of jeonse prices being adjusted downward especially for large-sized units and areas near newly occupied complexes. However, since there are still many areas where properties are scarce, it is not easy to predict a trend reversal."

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