Seoul Apartment Jeonse Market 'Uncertainty' Continues... Largest Increase Since June

Real Estate 114, Apartment Sale Price Trends in the Seoul Metropolitan Area

[Asia Economy Reporter Kim Hyemin] The Seoul jeonse market continues to show unstable trends. As the shortage of listings intensifies, jeonse prices recorded the highest rate of increase since mid-June. Sales prices have been rising every week without a single drop since the end of May last year.

According to Real Estate 114 on the 14th, the apartment sales prices in Seoul in the second week of August rose by 0.12% compared to the previous week. This is 0.02 percentage points higher than last week's 0.1%. General apartments increased by 0.12%, and reconstruction apartments rose by 0.09%.

Demand flowed mainly into mid-to-low priced large apartment complexes, leading Gangbuk, Guro, and Dongdaemun to increase their rise by more than 0.1 percentage points compared to the previous week. By region, Nowon was the highest at 0.29%, followed by Guro (0.24%), Gangbuk (0.22%), Geumcheon (0.2%), Gwanak (0.19%), Gangseo (0.18%), Gangnam (0.17%), Dobong (0.17%), Dongjak (0.17%), and Dongdaemun (0.16%).

In new towns, demand flowed into areas with transportation benefits and newly built large complexes, increasing by 0.06% compared to the previous week. The order was Dongtan (0.15%), Pyeongchon (0.12%), Ilsan (0.09%), Jungdong (0.06%), and Paju Unjeong (0.06%). Gyeonggi and Incheon rose by 0.08% compared to the previous week, with Suwon (0.19%), Incheon (0.14%), and Anyang (0.14%) leading the increase.

In the jeonse market, despite the summer off-season, the shortage of listings continues, and Seoul rose by 0.1% compared to the previous week. All autonomous districts except Jungnang-gu increased, with Nowon (0.2%), Gangdong (0.18%), Dobong (0.17%), and Gangbuk (0.16%) leading by region.

New towns rose by 0.03% compared to the previous week, and Gyeonggi and Incheon increased by 0.05%.

Yeo Kyung-hee, chief researcher at Real Estate 114, said, "Although the government has been announcing new supply plans one after another, the Seoul apartment market has been rising continuously since May 29 last year," adding, "There is a considerable time gap between supply plans and move-in, so it is difficult for the current apartment price rise to easily subside."

Chief researcher Yeo also said, "The shortage of jeonse listings is worsening, and the anxiety of demanders has not been resolved," adding, "The movement of non-homeowners with actual demand trying to switch to sales by applying eased loan regulations continues, so the upward trend led by mid-to-low priced apartments in the outskirts of Seoul and the metropolitan area is expected to continue for some time."

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