Gangnam-gu Housing Prices Fall for the First Time in 15 Months... Seoul Apartment Prices Decline for 4 Consecutive Weeks

[Image source=Yonhap News]

[Asia Economy Reporter Kim Min-young] The strong preference for owning a single smart home has kept demand firm, but apartment prices in Gangnam-gu have fallen for the first time in 15 months. Apartment prices in Seoul showed weakness for the fourth consecutive week.

According to the Korea Real Estate Board on the 19th, apartment prices in Seoul fell by 0.02% this week, widening the decline from last week's -0.01%. Due to interest rate hikes, perceptions of peak housing prices, and loan regulations, the market is experiencing a transaction freeze, with only urgent sales being traded.

This week’s survey by the Real Estate Board showed that among the 25 districts in Seoul, apartment prices in 24 districts either fell or remained flat, except for Jungnang-gu, which rose by 0.01%. In particular, apartment prices in Gangnam-gu dropped by 0.01% this week after being flat last week. This is the first decline in Gangnam-gu apartment prices since November 2, 2021 (-0.01%), marking 15 months. Yongsan-gu also fell by 0.01%, turning negative for the first time in 20 months since June 1, 2020 (-0.02%). Seocho-gu remained flat (0%), while Songpa-gu and Gangdong-gu each fell by 0.02%, the same as the previous week.

The Real Estate Board explained, "With buying demand shrinking and a wait-and-see attitude continuing, Gangnam-gu saw declines mainly in small to medium-sized apartments, and Gangdong-gu experienced drops centered on large complexes such as Dunchon and Gangil-dong. Among the 25 districts in Seoul, 22 recorded declines, and the overall Seoul area has been falling for four consecutive weeks."

Apartment prices in the metropolitan area fell by 0.02%, marking three consecutive weeks of decline. In the metropolitan area, the rate of decline widened in Siheung (-0.01% → -0.05%), Hanam (-0.03% → -0.06%), and Goyang (-0.01% → -0.03%). On the other hand, Paju rose by 0.07%, expanding its gains.

Apartment prices nationwide remained flat for three consecutive weeks. Busan apartment prices stopped rising for the first time since June 8, 2020.

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