"Only Quick Sales Below Market Price Traded"…Seoul Apartment Prices Slow for 3 Consecutive Weeks

Real Estate 114, Apartment Price Trends in the Seoul Metropolitan Area

[Asia Economy Reporter Kim Hye-min] Buyer hesitation → sharp drop in transaction volume → only urgent sales below market price → slowdown in price increase rate.

Amid this trend, Seoul apartment sale prices have slowed for three consecutive weeks.

According to Real Estate R114 on the 11th, the apartment sale price in Seoul for the second week of December rose by 0.06% compared to the previous week. The rate of increase has narrowed for three consecutive weeks. General apartments rose by 0.05% compared to the previous week. However, reconstruction complexes increased by 0.11%, expanding the rise compared to the previous week (0.05%). This reflects expectations for revitalization of reconstruction as news of Seoul City's participation in the rapid integrated planning led by the city was heard.

In Seoul, the overall rise slowed as transactions showed a lull. However, the non-Gangnam area, where price burdens are relatively lighter, saw an upward trend, and the reconstruction market showed strong growth in old apartments in Gangnam-gu due to increased expectations for project activation.

By region, the prices rose in the order of ▲Gangseo (0.21%) ▲Geumcheon (0.19%) ▲Gangnam (0.16%) ▲Gangbuk (0.14%) ▲Guro (0.12%) ▲Dongdaemun (0.07%) ▲Seongdong (0.06%).

New towns, like Seoul, saw demand decline due to price burdens and loan regulations, resulting in only a 0.02% increase compared to the previous week. By region, the order was ▲Bundang (0.05%) ▲Ilsan (0.05%) ▲Sanbon (0.04%) ▲Gwanggyo (0.03%).

Gyeonggi and Incheon rose by 0.03% compared to the previous week. The rise was notable in outer areas with relatively less price burden, in the order of ▲Icheon (0.12%) ▲Gimpo (0.09%) ▲Uijeongbu (0.09%) ▲Paju (0.08%) ▲Osan (0.08%).

Jeonse prices have stabilized compared to before as the supply of move-in units increased in the fourth quarter, mainly in the Gyeonggi area. Seoul rose by 0.06% compared to the previous week, new towns by 0.01%, and Gyeonggi·Incheon by 0.04%.

Looking at Seoul's jeonse market by region, the rise was in the order of ▲Geumcheon (0.2%) ▲Jongno (0.2%) ▲Gangnam (0.17%) ▲Gangseo (0.13%) ▲Guro (0.12%) ▲Gangbuk (0.09%).

New towns rose in the order of ▲Dongtan (0.04%) ▲Gimpo Hangang (0.03%) ▲Bundang (0.02%) ▲Sanbon (0.02%), and Gyeonggi·Incheon in the order of ▲Icheon (0.11%) ▲Yongin (0.09%) ▲Hanam (0.09%) ▲Gimpo (0.07%) ▲Hwaseong (0.07%).

Yoon Ji-hae, chief researcher at Real Estate R114, explained the atmosphere, saying, "Since the announcement of strengthened household debt management measures at the end of October and the additional base rate hike in November, housing market transactions have virtually disappeared." He added, "If transactions between sellers and buyers do not circulate normally, listings naturally accumulate, and as transactions occur mainly in urgent sales, the rate of increase slows and leads to a downturn."

He diagnosed, "Moreover, if political issues such as loan interest rate hikes or the presidential election mix into the market, buyer hesitation will deepen further. However, since housing issues move within two options?renting or buying?until the supply volume partially resolves the supply-demand imbalance, price volatility is likely to increase again depending on specific issues."

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