Seller-Buyer Tug of War... Metropolitan Area Real Estate Price Increase Slows for 3 Consecutive Weeks

Real Estate R114, This Week's Apartment Sales Market in the Seoul Metropolitan Area

The view of Seoul apartments from 63 Square in Yeouido, Seoul, on the 8th, when the capital gains tax exemption criteria for first-generation single-homeowners were raised (market price from 900 million KRW to 1.2 billion KRW). [Image source=Yonhap News]

[Asia Economy Reporter Kim Hyemin] The Seoul apartment real estate market saw a slowdown in the rate of increase for the third consecutive week amid a trading freeze. While buying sentiment has been significantly dampened by loan regulations and interest rate hikes, sellers continue to withhold sales or maintain asking prices due to expectations of property tax relief and the burden of capital gains tax.

According to Real Estate R114 on the 25th, the Seoul apartment sale prices in the fourth week of December rose by 0.04% compared to the previous week. General apartments increased by 0.04%, and redevelopment apartments rose by 0.05%.

Although price fluctuations were minimal in most complexes, relatively large complexes and those with redevelopment project issues, which continue to see transactions and inquiries, led the price movements. By region, the order was ▲Yongsan (0.14%) ▲Gwangjin (0.11%) ▲Mapo (0.1%) ▲Seocho (0.09%) ▲Eunpyeong (0.07%) ▲Gangnam (0.05%) ▲Gangseo (0.05%). Meanwhile, Gangdong fell by 0.02% compared to the previous week.

New towns rose by 0.01% compared to the previous week. By region, the order was ▲Gimpo Hangang (0.1%) ▲Pangyo (0.08%) ▲Jungdong (0.07%) ▲Ilsan (0.04%). Bundang fell by 0.03% compared to the previous week.

Gyeonggi and Incheon rose by 0.02% compared to the previous week. With no region recording a price change rate of over 0.1% for two consecutive weeks, there was a slight increase mainly in mid- to low-priced apartments in the outskirts. By region, the order was ▲Yongin (0.07%) ▲Yangju (0.07%) ▲Paju (0.06%) ▲Icheon (0.06%) ▲Pyeongtaek (0.06%).

The jeonse (lease) market entered the off-season, and with reduced demand due to contract renewals and loan regulations, Seoul saw a 0.03% increase compared to the previous week. By region, the order was ▲Jung-gu (0.16%) ▲Gwanak (0.13%) ▲Gwangjin (0.1%) ▲Geumcheon (0.1%) ▲Jongno (0.09%).

New towns and Gyeonggi-Incheon each rose by 0.02% compared to the previous week. Areas with concentrated short-term move-in volumes such as Bundang and Anyang recorded negative changes in jeonse prices.

Yeo Kyung-hee, chief researcher at Real Estate R114, said, "The government and ruling party are discussing supplementary measures to ease the tax burden on single-homeowners ahead of the announcement of official apartment prices in March next year. Candidates from each party have announced pledges to fully review or revert official prices to last year's levels ahead of the presidential election, maintaining expectations for tax-related regulatory easing. As a result, many homeowners are expected to postpone sales and wait to see how the situation unfolds after the election."

Chief researcher Yeo added, "With buyers holding back and listings being withheld, the transaction freeze is expected to continue for some time, leading to a sustained slowdown in the rate of increase in apartment prices in the metropolitan area."

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