Apartment Jeonse Prices Also Taking a Breather... Negative Growth in Gangnam, Songpa, and Gangdong

Accumulated Apartment Listings in Central Seoul
Some Complexes Drop Over 100 Million KRW
Experts: "Many Market Variables... Difficult to Identify Decline Turning Point"

[Asia Economy Reporter Ryu Tae-min] The Seoul apartment jeonse market, which had been soaring due to the contract renewal request system and the rent ceiling system, seems to have entered a pause. The rate of price increase has slowed, and listings are accumulating in various areas.

According to Real Estate 114 on the 22nd, the jeonse price increase rate for Seoul apartments in the third week of March recorded 0.05%. Compared to the previous week (0.10%), the rate of increase has halved. In particular, in the Gangnam 4 districts, except for Seocho-gu, △Gangnam-gu (-0.07%) △Gangdong-gu (-0.02%) △Songpa-gu (-0.01%) all saw jeonse prices decline. According to statistics from the Korea Real Estate Board, last week’s Seoul jeonse price increase was 0.05%, the lowest in about nine months.

Some complexes in the Gangnam area showed notable jeonse price declines. In Daechi-dong, Gangnam-gu, Eunma with 76.79㎡ was contracted at 900 million KRW on the 1st of this month, down 100 million KRW from the January transaction price of 1 billion KRW. Local real estate agencies explain that the current asking price has dropped to between 700 million and 800 million KRW. In Goduk-dong, Gangdong-gu, Goduk Gracium with 57.78㎡ was jeonse traded at 750 million KRW on the 3rd. This area had risen to 820 million KRW in February but fell about 70 million KRW in one month. The current asking price has also been adjusted to around 750 million KRW. In Garak-dong, Songpa-gu, Helio City with 84.95㎡ once saw jeonse prices soar to 1.3 billion KRW, but since this month, transactions have been occurring in the 1 billion to 1.05 billion KRW range.

Listings are also accumulating. According to statistics from Asil (Apartment Real Transaction Price), a real estate big data company, as of this day, Seoul apartment jeonse listings increased by 8% compared to a month ago. Seocho-gu (36.9%) had the highest growth rate, followed by Jongno-gu (30.9%), Eunpyeong-gu (26.2%), Gangbuk-gu (18.1%), and Gwangjin-gu (17.7%). In the Gangnam area, Gangnam-gu (14.7%), Songpa-gu (8.2%), and Gangdong-gu (-3.7%) appeared in that order.

Yeo Kyung-hee, senior researcher at Real Estate 114, said, "With school district demand ending in March and the burden on buyers increasing due to higher house prices, prices seem to be finding their proper level." She added, "However, if homeowners, burdened by increased property taxes due to the sharp rise in official property prices, begin to convert jeonse contracts to monthly rent in earnest, there is a possibility that jeonse supply volume may decrease."

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