Seoul Metropolitan Area Apartment Price Increase Narrows Again... "Widespread Perception of Peak, Reduced Buying Demand"

Korea Real Estate Board October 3rd Week Apartment Price Trends
Capital Region Up 0.30%... Weekly Increase Slows
Autumn Moving Season, But Jeonse Prices Also Stall

Apartment complexes in Songpa and Gangnam areas as seen from the 'Seoul Sky' observatory at Lotte World Tower, Jamsil, Songpa-gu, Seoul [Image source=Yonhap News]

The rate of increase in apartment prices in the Seoul metropolitan area has narrowed again this week. This is interpreted as a result of reduced buying demand due to the widespread perception that housing prices have reached their peak, combined with loan regulations. Meanwhile, jeonse prices are also showing signs of slowing down as the autumn moving season comes to an end.

According to the weekly apartment price trend for the third week of October announced by the Korea Real Estate Board on the 21st, as of the 18th, apartment prices in the metropolitan area rose by 0.30%, a smaller increase compared to the previous week (0.32%). The metropolitan area’s rate of increase has been declining almost every week since mid-last month when it recorded 0.40%, moving through 0.36%, 0.34%, 0.32%, and now 0.30%.

Seoul saw the same 0.17% increase as last week, but buying demand weakened. The Real Estate Board explained, "With the spread of peak price perception and the continuation of household loan volume regulations, buying sentiment has weakened, but the rate of increase was maintained mainly in popular urban areas and regions with expectations for reconstruction."

In Seoul, Yongsan-gu (0.28%) saw relatively high increases due to expectations for redevelopment projects, with some complexes recording new high-price transactions. Mapo-gu (0.27%) and Eunpyeong-gu (0.22%) also showed high rates of increase. South of the Han River, Songpa-gu (0.25%) and Gangnam-gu (0.24%) expanded their rate of increase compared to the previous week.

In Incheon, the apartment price increase rate decreased from 0.42% to 0.40%. Yeonsu-gu (0.46%), Michuhol-gu (0.45%), and Gyeyang-gu (0.40%) showed the largest increases in that order. Gyeonggi-do also saw a decrease in the rate of increase from 0.39% to 0.35%. Osan-si (0.69%) rose significantly due to transportation benefits, and Anseong-si (0.57%), Uiwang-si (0.52%), and Icheon-si (0.49%) also experienced strong buying demand.

[Image source=Yonhap News]

The jeonse market in the metropolitan area is in the autumn moving season, but the rate of increase has slightly narrowed due to an increase in available listings. The Real Estate Board explained, "Due to the high burden of jeonse prices, listings have somewhat increased," adding, "In the final phase of the autumn moving season, the upward trend continued mainly in areas near subway stations and with good school districts, as well as complexes with relatively low price levels."

In Seoul, Mapo-gu (0.20%), Jung-gu (0.20%), and Jongno-gu (0.19%) saw large increases in jeonse prices. Songpa-gu (0.16%), Gangdong-gu (0.16%), and Gangnam-gu (0.15%) also attracted demand mainly in school districts or mid-to-low price complexes.

In Incheon (0.25% → 0.23%) and Gyeonggi-do (0.27% → 0.25%), the rate of increase narrowed in both regions. In Incheon, Gyeyang-gu (0.35%) saw significant jeonse price increases mainly in small-to-medium sized older complexes in Byeongbang and Yongjong-dong. In Gyeonggi-do, Yangju-si (0.65%), Siheung-si (0.58%), Anseong-si (0.50%), and Danwon-gu in Ansan (0.49%) are continuing their upward trends.

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