Nationwide Apartment Jeonse Market Also Frozen... Turning Down After Two and a Half Years

Apartment complex in Seoul area (Photo by Yonhap News)

[Asia Economy Reporter Ryu Tae-min] The nationwide apartment jeonse price index fell for the first time in two and a half years. Seoul apartment jeonse prices have declined for three consecutive weeks, and the decline is widening in other metropolitan areas such as Incheon and Gyeonggi Province. This is interpreted as a result of an increase in tenants' jeonse loan burdens due to the rise in the base interest rate and loan regulations, leading to an accumulation of listings.

According to the weekly apartment price trend announced by the Korea Real Estate Agency on the 19th for the second week of February, as of the 14th, the nationwide apartment jeonse price index fell by 0.01%. This is the first decline in two and a half years since August 2019. The Real Estate Agency explained that the accumulation of listings continues due to the burden of jeonse loan interest rates and loan regulations.

This week, Seoul apartment jeonse prices fell by 0.03%, a larger decline than the previous week (-0.02%). Seodaemun-gu fell by 0.10%, marking the largest drop. Jongno-gu also declined significantly by -0.08%. South of the Han River, Gangnam-gu (-0.05%) saw declines mainly in high-priced complexes and reconstruction areas where price increases had been high, and Songpa-gu (-0.05%) continued its downward trend mainly in major complexes in Jamsil and Jangji-dong. Seocho-gu (-0.01%) turned to a decline as listings accumulated mainly in high-priced areas such as Jamwon and Banpo-dong.

In the metropolitan area, 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 to stable. Seo-gu (-0.19%) saw declines mainly in Cheongna, Gajeong, and Dangha-dong, affected by new housing supply, Yeonsu-gu (-0.14%) experienced accumulation of listings mainly in Songdo-dong with price burdens, and Dong-gu (-0.04%) declined mainly in low-priced complexes such as Hwasu-dong.

Gyeonggi Province fell by -0.04%, a larger 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 sales prices in Jangji and Mokdong due to the impact of listing accumulation, Uiwang-si (-0.15%) declined mainly in older complexes in Ojeon and Naeson-dong, and Goyang-si (-0.04%) turned to decline in Ilsandong (-0.04%) and Ilsanseo-gu (-0.02%).

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