Seoul Apartment Price Increase Rate Declines for 2 Consecutive Weeks... Jeonse Also Turns Down After 2 Years and 8 Months

Korea Real Estate Board January Fifth Week Nationwide Housing Price Trends
Seoul Sale Price Increase Rate Records -0.01% for 2 Consecutive Weeks
Decline Turns in 8 Autonomous Districts... Total 19 Districts in Downtrend

Apartment view around Seoul / Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Ryu Tae-min] Due to interest rate hikes and accumulated fatigue over housing prices, apartment prices in Seoul fell by 0.01% for two consecutive weeks. Eight autonomous districts including Mapo-gu, Seongdong-gu, and Seodaemun-gu shifted to a decline, and the Gangnam area also showed signs of stabilizing as overall buying sentiment weakened. Meanwhile, jeonse prices in Seoul also turned downward for the first time in 2 years and 8 months, indicating a trend toward stabilization.

According to the weekly apartment price trend for the fifth week of January announced by the Korea Real Estate Board on the 4th, as of the 31st of last month, apartment sale prices in Seoul fell by 0.01%. This continued the decline from the previous week (-0.01%).

In Seoul, 19 out of 25 autonomous districts recorded declines. Eight districts including Jung-gu, Mapo-gu, Seongdong-gu, Seodaemun-gu, Yangcheon-gu, Gangseo-gu, Guro-gu, and Yeongdeungpo-gu each recorded -0.01% this week, turning to a decline. Seongbuk-gu (-0.03%), Gangdong-gu (-0.02%), and Jongno-gu (-0.02%) saw their decline rates increase. Gangnam-gu, Seocho-gu, and Songpa-gu, which had shown high growth rates, all stabilized at 0.00%.

Incheon (0.02% → -0.04%) and Gyeonggi-do (0.00% → -0.03%) also shifted to declines. In Incheon, prices fell in 7 out of 8 districts, with only Gyeyang-gu showing an increase. In Gyeonggi-do, Icheon-si (0.16%) showed a relatively high increase, but 18 out of 45 cities and districts, including Hwaseong (-0.09%), Anyang (-0.07%), and Namyangju (-0.07%), which had previously seen high growth, shifted to declines.

Sejong saw apartment prices fall by 0.13% this week, a smaller decline compared to the previous week (-0.19%). The Real Estate Board explained, "The decline continued due to factors such as new housing supply and reduced transaction activity."

Exterior view of a real estate agency in downtown Seoul (Photo by Yonhap News)

The apartment jeonse market also maintained a downward trend this week in the metropolitan area (-0.02%), with Seoul turning to a decline for the first time in about 2 years and 8 months, showing a clear trend toward stabilization.

Seoul’s jeonse price growth rate dropped from 0.00% last week to -0.02% this week. Nowon-gu (-0.04%) and Seongbuk-gu (-0.04%) saw an expanded decline due to accumulating listings, while Seongdong-gu (-0.02%) and Mapo-gu (-0.01%) also shifted to declines.

South of the Han River, Seocho-gu (0.00%) generally showed mixed trends and stabilized. Songpa-gu (-0.03%), Dongjak-gu (-0.03%), and Gangnam-gu (-0.01%) continued their downward trends.

Incheon recorded -0.04% this week, a smaller decline compared to the previous week (-0.06%). Michuhol-gu (0.04%) saw increases mainly in some areas with relocation demand due to redevelopment projects, while Gyeyang-gu (0.00%) stabilized due to reduced transactions during the Lunar New Year holiday.

Gyeonggi-do maintained a 0.02% decline, the same as the previous week. Icheon-si (0.21%) rose mainly in Bubal-eup, where there is worker demand, and Paju-si (0.11%) increased mainly in low- to mid-priced areas such as Geumchon-dong and Munsan-eup. Ansan, Gwangju, and Pocheon-si (0.00%) showed mixed trends by complex and stabilized. Anyang Dongan-gu (-0.16%), Gunpo-si (-0.13%), and Suwon Yeongtong-gu (-0.09%) continued to decline due to increased nearby housing supply.

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