Seoul Gangbuk-gu Housing Prices Stop Rising... Daegu and Sejong See Widening Declines

Real Estate Institute November 5th Week Apartment Price Trends
Seoul and Metropolitan Area Continue Narrowing Rise
Gangbuk-gu Turns Stable... Sign of Decline
Daegu and Sejong Increased Decline... Jeonse Also Slows Down

View of Seoul apartments from 63 Square. Photo by Hyunmin Kim kimhyun81@

As apartment buying sentiment sharply contracts, the price increase trend in Seoul and the metropolitan area is slowing down. Even in areas of Seoul that had previously faced a shortage of listings, supply has started to increase, leading to a reduction in the rate of price growth for six consecutive weeks. In Sejong and Daegu, the decline in apartment prices widened further this week, while Gangbuk-gu in Seoul shifted to a stable trend.

According to the weekly apartment price trend for the fifth week of November announced by the Korea Real Estate Board on the 2nd, as of the 29th of last month, apartment prices in Seoul rose by 0.10%, a slowdown compared to the previous week (0.11%). The Real Estate Board explained, "Due to strengthened household loan management and interest rate hikes, buying sentiment and transaction activity continue to weaken," adding, "In some areas that had experienced a shortage of listings, supply has slightly increased, resulting in a reduction in the rate of price growth for six consecutive weeks."

In Seoul, Gangbuk-gu shifted from a 0.02% increase last week to a 0.00% stable trend this week. This is interpreted as the price rise stopping as buying demand dried up and a wait-and-see attitude deepened, causing listings to accumulate. However, Yongsan-gu (0.23%) saw prices rise mainly in Ichon-dong due to ongoing expectations for redevelopment projects, and Mapo-gu (0.15%) increased mainly in large complexes in Yeomni and Dohwa-dong.

Seocho-gu (0.17%) saw price increases influenced by record-high transactions in some popular complexes. Songpa-gu (0.17%) rose mainly in large complexes in Garak and Jamsil-dong, and Gangnam-gu (0.15%) continued its upward trend mainly in key complexes in Gaepo-dong and Samseong-dong, where there is school district demand.

In Gyeonggi-do, the apartment price increase rate sharply dropped from 0.21% to 0.17%. Icheon-si (0.51%) had a relatively large increase, followed by Anseong-si (0.43%), Gunpo-si (0.27%), Bucheon-si (0.27%), and Osan-si (0.26%). Overall, the rate of increase narrowed. In Incheon as well, prices rose 0.22% this week, down from 0.25% the previous week.

Daegu (-0.03%) saw a deepening decline amid continued burdens from unsold inventory. Dong-gu (-0.06%) declined mainly in older complexes in Singi and Sinseo-dong, and Jung-gu (-0.05%) fell mainly in Daesin and Namsan-dong. Sejong City also saw apartment prices drop further from -0.21% to -0.26%.

View of Seoul apartments from 63 Square. Photo by Hyunmin Kim kimhyun81@

The jeonse (long-term lease) market is also showing a gradual slowdown in the rate of increase. In Seoul (0.11%→0.10%), prices rose mainly in areas with good living conditions or near subway stations, but due to interest rate hikes and high asking price burdens, listings increased and the rate of price growth decreased. Dongdaemun-gu (0.14%), Eunpyeong-gu (0.14%), and Mapo-gu (0.13%) saw relatively significant increases in jeonse prices.

In Incheon, prices rose by 0.15%, the same as the previous week, while in Gyeonggi-do, the jeonse price increase rate dropped from 0.17% to 0.12%. Icheon-si (0.50%), Anseong-si (0.30%), and Siheung-si (0.27%) had large increases in jeonse prices. However, in Anyang Dongan-gu, jeonse prices fell by 0.13% due to the new move-in of 1,199 households at Pyeongchon Raemian Prugio last month.

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