After 16 Months... Seoul Small Apartments See Prices Drop

11 Districts South of Hannam, Under 60㎡ Down 1.06%
Some Areas Dropped 35 Million Won in About a Month
Loan Restrictions Hit Less Preferred Unit Sizes

[Asia Economy Reporter Kim Hyemin] The prices of small apartments in the Gangnam area of Seoul have fallen for the first time in 16 months. Although the average housing price across Seoul is still trending upward, a partial price decline, known as 'de-synchronization,' is emerging. Amid mixed trends in housing prices, some analysts suggest that speculative demand is retreating from less-preferred housing types with relatively shallow genuine demand.

According to the monthly housing price trend report by KB Live Real Estate on the 27th, the average sale price this month for small apartments under 60㎡ (exclusive area) in 11 districts south of the Han River in Seoul was 1,000,059,000 KRW. This is 1.06% lower than last month's 1,011,320,000 KRW. This marks the first monthly price drop for apartments of this size since June last year.

Actual transaction prices also show noticeable declines. For example, a 49㎡ unit in Namseoul Lucky, Siheung-dong, Geumcheon-gu, which was sold for 760 million KRW on the 14th of last month, was sold for 725 million KRW on the 20th of this month?a drop of 35 million KRW in just over a month. Similarly, a 54㎡ unit in Mokdong New Town 7th Complex, Yangcheon-gu, was reported sold for 1.57 billion KRW this month, down 30 million KRW from 1.6 billion KRW in June.

Notably, price declines are prominent among ultra-small apartments under 40㎡. In Yeongdeungpo-gu, 5 out of 9 transactions this month showed price drops, with 3 of those being apartments under 40㎡. In Gangdong-gu, 3 out of 4 price-declined transactions were under 40㎡, and in Gangnam-gu, both price-declined transactions (excluding pre-sale conversions) were under 40㎡.

Yeo Kyung-hee, senior researcher at Real Estate R114, stated, "With lending restrictions, it can be interpreted that investment demand is retreating first from less-preferred apartment sizes. However, whether this signals the beginning of a housing price decline requires further observation of the trend."

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