Last Month, Sales and Jeonse Price Increase Slowed in the Seoul Metropolitan Area... Monthly Rent Jumped

Korea Real Estate Board October Housing Price Trends
Seoul and Capital Area Home Price Increase Slows
Local Areas See Wider Rise in Both Sales and Jeonse
Monthly Rent Nationwide Increases More, Causing Concern

[Image source=Yonhap News]

Last month, the nationwide housing sale price increase narrowed compared to the previous month. While the increase slightly grew in provincial areas, the upward trend slowed in Seoul and other metropolitan areas. This is interpreted as a weakening of buying demand starting from the metropolitan area due to the government's strengthened loan regulations. The housing rental prices also showed a reduced increase in Seoul and other metropolitan areas, but the upward trend grew in provincial regions.

According to the nationwide housing price trend survey for October released by the Korea Real Estate Board on the 15th, the nationwide monthly comprehensive housing sale price rose by 0.88%, narrowing from the previous month (0.92%). The metropolitan area (1.24%→1.13%) and Seoul (0.72%→0.71%) saw a decrease in the rate of increase, while provincial areas (0.63%→0.67%) experienced an expansion. Sejong (-0.08%→-0.11%) saw a larger decline.

In Seoul (0.71%), sale prices rose mainly in areas with reconstruction expectations, but the overall increase narrowed as buying sentiment weakened due to household loan volume regulations. Gyeonggi-do (1.33%) saw significant rises mainly in Osan and Uiwang cities, which have transportation benefits and are perceived as undervalued, while Incheon (1.50%) experienced concentrated buying demand in newly built properties with favorable living conditions.

In Seoul, the three Gangnam districts?Songpa-gu (1.09%), Gangnam-gu (1.09%), and Seocho-gu (1.03%)?recorded increases exceeding 1%, and Yongsan-gu (0.90%) and Nowon-gu (0.88%) also saw significant rises mainly in reconstruction and remodeling project areas.

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 nationwide monthly comprehensive housing rental price rose by 0.62%, expanding from the previous month (0.59%). The metropolitan area (0.80%→0.75%) and Seoul (0.54%→0.48%) saw a narrowing in the rate of increase, but the rise in provincial areas (0.40%→0.50%) contributed to the overall expansion. Sejong also saw its rental price increase rate expand from 0.09% to 0.33%.

In Seoul (0.48%), a general shortage of listings continued, and rental prices rose mainly for small to medium-sized units and properties near subway stations in areas with favorable living conditions. Gyeonggi-do (0.91%) saw increases mainly in areas perceived as undervalued or with good transportation environments, while Incheon (0.81%) experienced rises centered on subway station areas and major large complexes with good access to Seoul.

In Seoul, rental prices rose notably in high-priced complex-dense areas such as Songpa-gu (0.72%) and Gangnam-gu (0.71%), and also increased relatively significantly in Jung-gu (0.70%), Dongjak-gu (0.62%), and Gangdong-gu (0.58%).

The nationwide monthly comprehensive monthly rent increase rate was 0.32%, expanding from the previous month (0.29%). Monthly rent prices rose further in the metropolitan area (0.35%→0.38%), Seoul (0.22%→0.25%), and provincial areas (0.24%→0.26%). Sejong shifted from a decline last month (-0.09%) to an increase (0.37%).

In Seoul (0.25%), monthly rents rose mainly in subway station areas with favorable living conditions such as Songpa, Seocho, and Dobong-gu. Gyeonggi-do (0.46%) saw increases mainly in Siheung and Anseong cities, where expectations for residential environment improvements exist. In Incheon (0.44%), monthly rents mainly rose in Yeonsu and Michuhol-gu, where rental prices had large increases.

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