Seoul Apartment Prices Drop Sharply... 22 out of 25 Districts Show Negative Growth

Apartment buildings in the Seoul area (Photo by Yonhap News)

[Asia Economy Reporter Ryu Taemin] Due to interest rate hikes and accumulated fatigue over housing prices, the decline in apartment prices in Seoul has widened. Three autonomous districts?Gangnam, Yongsan, and Dobong?have shifted to a decline, and districts such as Jongno, Seongbuk, and Seodaemun are showing deepening downward trends. The rent prices for apartments in Seoul have also seen an expanded decline, creating an atmosphere of stabilization.

According to the weekly apartment price trend for the second week of February announced by the Korea Real Estate Board on the 17th, as of the 14th, apartment sale prices in Seoul fell by 0.02%. Previously, the decline rate had been -0.01% for three consecutive weeks, but this week the decline widened.

In Seoul, 22 out of 25 autonomous districts recorded declines. Seongbuk-gu (-0.08%), Seodaemun-gu (-0.08%), and Jongno-gu (-0.07%) showed high rates of decline. Among the Gangnam 3 districts, which had shown high growth rates, Songpa-gu continued to decline by 0.02% following last week, and Gangnam-gu (-0.01%) also shifted to a decline. Seocho-gu remained steady at 0.00%.

Incheon (-0.02%→-0.01%) saw a reduction in the decline rate. Seogu (0.01%) rose mainly in mid- to low-priced areas around Gyeongseo and Bullo-dong, but Dong-gu (-0.04%), Yeonsu-gu (-0.03%), and Bupyeong-gu (-0.02%) declined, maintaining the overall downward trend in Incheon.

Gyeonggi-do (-0.02%→-0.02%) maintained its decline rate. Icheon-si (0.21%) showed a high increase, but in areas such as Anyang Dongan-gu (-0.08%), Hanam (-0.06%), Siheung (-0.05%), and Bucheon-si (-0.05%), buyer sentiment and transaction activity weakened, expanding the decline. Gunpo-si (-0.05%) shifted to a decline, mainly in complexes that had previously seen high growth.

Sejong saw apartment prices fall by 0.13% this week, a larger decline than the previous week (-0.10%).

A real estate agency in a densely populated apartment complex in Seoul. Photo by Hyunmin Kim kimhyun81@

The apartment rental market also saw a wider decline this week in both the metropolitan area (-0.04%) and Seoul (-0.03%) compared to the previous week. In Seoul, amid continued inventory accumulation due to burdens from rental loan interest rates and loan regulations, high-priced complexes that had been rising in price mainly declined, expanding the overall decline.

South of the Han River, Gangnam-gu (-0.05%) declined mainly in high-priced complexes and reconstruction areas that had seen high price increases, and Songpa-gu (-0.05%) continued its decline mainly in major complexes in Jamsil and Jangji-dong. Seocho-gu (-0.01%) shifted to a decline as inventory accumulated mainly in high-priced areas such as Jamwon and Banpo-dong.

In other metropolitan areas, Incheon recorded -0.07%, a larger decline than the previous week (-0.04%). Michuhol-gu (0.00%) showed mixed trends by region and complex, turning stable. Seogu (-0.19%) saw inventory accumulation mainly in Cheongna, Gajeong, and Dangha-dong, which were affected by new housing supply, Yeonsu-gu (-0.14%) saw accumulation mainly in the price-burdened Songdo-dong, and Dong-gu (-0.04%) declined mainly in low-priced complexes such as Hwasu-dong.

Gyeonggi-do declined by -0.04%, a wider decline than the previous week (-0.01%). Icheon-si (0.27%) rose mainly in Bubal-eup, which has good accessibility to workplaces. Hwaseong-si (-0.16%) declined along with sale prices in Jangji and Mokdong due to inventory accumulation. Uiwang-si (-0.15%) declined mainly in older complexes in Ojeon and Naeson-dong, and Goyang-si (-0.04%) shifted to a decline in Ilsandong (-0.04%) and Ilsanseo-gu (-0.02%).

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