Capital Region Apartment Prices Increase Rate Narrows for 4th Week... Jeonse Prices Also Stall

Korea Real Estate Board November First Week Apartment Price Trends
Slowing Sales Growth in Seoul and Metropolitan Area Continues
Seochodong Sees Increased Price Rise... Impact of Record Highs
Jeonse Prices Also Generally Showing Accumulating Listings

A property listing posted at a real estate agency in Seoul. Photo by Hyunmin Kim kimhyun81@

The rate of increase in apartment prices in the Seoul metropolitan area has narrowed for the fourth consecutive week. This is interpreted as a slowdown in the upward trend due to the government's strengthened loan regulations and decreased buying demand.

According to the weekly apartment price trend for the first week of November announced by the Korea Real Estate Board on the 4th, as of the 1st, apartment prices in the metropolitan area rose by 0.26%, narrowing from the previous week's 0.28%. Since last month, the metropolitan area has seen a continuous slowdown in the rate of increase: 0.34% → 0.32% → 0.30% → 0.28% → 0.26% over four consecutive weeks.

Seoul also saw a 0.15% increase this week, with the rate of increase shrinking for the second consecutive week. The Real Estate Board explained, "Due to the announcement of strengthened household debt management measures, concerns over interest rate hikes, and seasonal off-season effects, a cautious stance has deepened, and trading activity has decreased, leading to a reduced rate of increase."

In Seoul, most autonomous districts showed similar or lower rates of increase compared to last week. Yongsan-gu (0.27%) rose mainly in Ichon-dong, where expectations for reconstruction or remodeling exist; Mapo-gu (0.25%) increased mainly in popular complexes in Ahyeon and Gongdeok-dong; and Eunpyeong-gu (0.19%) rose mainly around the green line and Jinkwan-dong station areas, but the magnitude of increase narrowed.

Gangnam-gu (0.21%) rose mainly in Daechi and Dogok-dong reconstruction areas and major complexes; Songpa-gu (0.21%) mainly in Jamsil-dong; and Gangdong-gu (0.16%) mainly in Godeok, Myeongil, and Amsa-dong, but the pace of increase also slowed. However, Seocho-gu (0.25%) saw an expansion in the rate of increase this week due to record-high transactions in reconstruction areas of Jamwon and Banpo-dong.

In Incheon, the apartment price increase rate narrowed from 0.38% last week to 0.37% this week. Yeonsu-gu (0.45%) saw high-priced transactions centered on newly built apartments in Songdo-dong with good educational environments and older buildings in Dongchun-dong. Michuhol-gu (0.40%), Gyeyang-gu (0.39%), and Namdong-gu (0.39%) also maintained relatively high upward trends.

Apartment prices in Gyeonggi-do rose by 0.29% this week, slowing compared to 0.33% last week. Osan-si (0.53%) saw significant increases mainly in areas perceived as low-priced compared to neighboring regions, and Icheon-si (0.52%), Anyang Dongan-gu (0.45%), Anseong-si (0.43%), and Gunpo-si (0.42%) also continued price rises due to various development benefits.

Apartments in downtown Seoul as seen from Namsan, Seoul
[Image source=Yonhap News]

The jeonse (long-term lease) market is also showing signs of a slowdown in price increases.

In Seoul (0.13% → 0.12%), the upward trend continued mainly in areas with good school districts, transportation accessibility, and mid-to-low price demand, but the rate of increase narrowed compared to last week as trading activity decreased and listings increased ahead of the college entrance exam.

Jeonse prices rose relatively significantly in Jung-gu (0.19%), Mapo-gu (0.18%), and Jongno-gu (0.17%). Areas with relocation demand due to redevelopment projects such as Dongjak-gu (0.15%) and areas with good school districts like Yangcheon-gu (0.14%) also saw continued increases.

The four Gangnam districts?Gangdong-gu (0.14%), Gangnam-gu (0.13%), Songpa-gu (0.13%), and Seocho-gu (0.10%)?saw jeonse prices rise mainly in mid-to-low price ranges, but high-priced complexes experienced a backlog of jeonse listings, leading to an overall reduction in the rate of increase.

Gyeonggi-do (0.25% → 0.22%) also showed a slight slowdown in the upward trend. Increases were observed in Anseong-si (0.50%), Siheung-si (0.49%), Icheon-si (0.45%), and Danwon-gu in Ansan (0.40%).

However, in Incheon, apartment jeonse prices rose by 0.25% this week, expanding from 0.23% last week. The upward trend continues mainly in areas with good transportation environments such as Yeonsu-gu (0.43%), Michuhol-gu (0.36%), and Namdong-gu (0.27%).

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