Falling Areas Pour In... Eunpyeong and Yeongtong Land Prices ↓, Seongbuk, Hwaseong, and Daegu Jeonse Prices ↓

Korea Real Estate Board December Third Week Apartment Price Trends
Seoul Eunpyeong Negative, Geumcheon-gu Stabilizes
Suwon Yeongtong Falls for First Time in 2 Years 5 Months... Uiwang Stable
Jeonse Also Slows... Seongbuk, Hwaseong, Seongnam, Daegu Decline

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

As recognition of the housing price peak spreads and the government tightens loan regulations, the real estate market has frozen solid, with apartment prices in Eunpyeong-gu, Seoul turning to a downward trend this week. Geumcheon-gu also shifted to a flat trend as listings began to accumulate, and Sejong City saw apartment prices fall by 0.57% in one week, setting a new record for the largest decline.

According to the apartment price trend for the third week of December announced by the Korea Real Estate Board on the 23rd, as of the 20th, apartment prices in the metropolitan area rose by 0.07%, narrowing from the previous week's 0.10%. The metropolitan area has seen a slowdown in the rate of increase for 11 consecutive weeks since the first week of October, when prices rose by 0.34%. Seoul (0.07%→0.05%) and provinces (0.08%→0.07%) also showed a slowdown in the upward trend.

In Seoul, the rate of increase decreased in 15 out of 25 districts this week. In particular, Geumcheon-gu (0.00%) shifted to a flat trend as listings piled up mainly in large complexes, and Eunpyeong-gu (-0.03%) began to see price declines for the first time in 1 year and 7 months since May last year due to increased downward transactions. Seocho-gu (0.12%), Gangnam-gu (0.09%), and Gangdong-gu (0.04%) also saw a reduction in the rate of increase as buying demand decreased.

Incheon (0.13%→0.10%), which had been experiencing a steep rise in housing prices, saw a decrease in the rate of increase in 7 out of 8 districts this week. Gyeyang-gu (0.20%) rose mainly around the station area in Jakseon-dong and large complexes in Byeongbang-dong, and Bupyeong-gu (0.15%) increased mainly in Samsan-dong and Bugae-dong, which are affected by redevelopment projects, but overall transaction activity was subdued.

Gyeonggi-do (0.11%→0.07%) also saw a slowdown in the rate of increase in 34 out of 45 cities, counties, and districts. Uiwang-si (0.00%) shifted to a flat trend, and Suwon Yeongtong-gu (-0.01%) turned to a decline for the first time in 2 years and 5 months. The Real Estate Board explained, "Overall, a wait-and-see attitude is deepening, and buying demand is shrinking."

Apartment prices in Sejong fell by 0.57%, increasing the decline from last week (-0.47%). This is the second consecutive week of record-breaking declines following the largest drop in about 7 years and 4 months at -0.33% in the first week of this month. Sejong has been in a downward trend for 21 consecutive weeks since the third week of July. The Real Estate Board analyzed, "Listings are accumulating due to strengthened household loan management and an increase in new housing supply."

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

The jeonse (long-term lease) market is also showing signs of slowing growth. Seoul apartment jeonse prices rose by 0.06% this week, narrowing from 0.08% last week. Among 25 districts, the rate of increase slowed in 17 districts, with Seongbuk-gu (-0.02%) turning to a decline due to a backlog of older properties in Jeongneung-dong, and Geumcheon and Gwanak-gu (0.00%) shifting to a flat trend.

Gangnam-gu (0.09%) saw jeonse demand mainly in Yeoksam and Daechi-dong, which have school district demand, and Seocho-gu (0.07%) continued jeonse demand mainly in mid- to low-priced outer areas such as Yangjae and Umyeon-dong, but the rate of increase also decreased.

Incheon (0.11%→0.06%) also showed a slowdown in the rate of increase in 4 out of 8 districts for apartment jeonse prices. Yeonsu-gu (0.00%) shifted to flat, and Seo-gu (-0.02%) turned to a decline.

Gyeonggi-do's rate of increase halved from 0.09% last week to 0.04% this week. Hwaseong-si (-0.06%), Seongnam Jungwon-gu (-0.03%), and Suwon Gwonseon-gu (-0.02%) turned to jeonse price declines. Guri (0.00%) and Hanam-si (0.00%) remained flat.

Daegu (-0.03%) turned to a decline for the first time in 1 year and 8 months since the third week of April last year due to the burden of new housing supply and unsold units. Jeonse prices fell in Dalseo-gu (-0.06%), Jung-gu (-0.06%), and Dong-gu (-0.05%). Sejong (-0.33%→-0.43%) also saw a larger decline as new housing supply increased.

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