'Aripak' Gukpyeong Hits 4.66 Billion Again... Hong Nam-ki Says "Gangnam 4 Districts Down 340 Million, Real Estate Shows Downward Stabilization"

Hong Nam-ki "Housing Market Passes Inflection Point, Enters Trend of Gradual Downward Stabilization"

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, is speaking while presiding over the 39th Real Estate Market Inspection Meeting of Related Ministers held on the morning of the 23rd at the Government Seoul Office in Jongno-gu, Seoul.

[Asia Economy Sejong=Reporter Kwon Haeyoung] Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki stated on the 23rd, "The housing market has now passed the inflection point and entered a phase of trend-based downward stabilization."

Deputy Prime Minister Hong chaired the 39th Real Estate Market Inspection Meeting with related ministers at the Government Seoul Office that morning and evaluated, "The real estate sales market has shown a clear and rapidly spreading downward stabilization trend, with Seoul declining for 4 consecutive weeks, the metropolitan area for 3 weeks, and the Gangnam 4 districts for 2 weeks since the beginning of this year."

He continued, "The number of local governments experiencing price declines in sales expanded from 30 at the end of last year to 94 as of the second week of February," adding, "The Housing Price Consumer Sentiment Index (CSI) released by the Bank of Korea for February also fell below 100 for the first time in 1 year and 9 months, spreading the general public's expectation of price declines as a common perception."

He particularly emphasized that the sales market in the Gangnam 4 districts is also showing a downward trend. He said, "In the Gangnam 4 districts sales market, actual transaction prices fell in November last year for the first time in 8 months, and from the first week of February this year, the market inventory housing prices (sales price index) have also been declining for 2 consecutive weeks," adding, "Looking at actual transaction contracts in the Gangnam 4 districts from February 1 to 20, cases of price drops compared to previous highs were detected in 16 complexes, with the average decline in apartment prices, excluding ultra-small units (40㎡), reaching approximately 340 million KRW."

However, Gangnam apartments are renewing record prices mainly for high-end apartments. According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system, the 84㎡ unit of 'Acro River Park' in Seocho-gu, Seoul, was transacted at 4.66 billion KRW on the 21st of last month. This is 160 million KRW higher than the previous highest price of 4.5 billion KRW.

Regarding the jeonse (long-term lease) market, Deputy Prime Minister Hong said, "The Seoul jeonse supply-demand index has declined for 14 consecutive weeks, the longest since the Korea Real Estate Board began compiling it in 2012," adding, "Based on supply-demand improvements and accumulated listings, the Gangnam 4 districts and Seoul saw a 0.03-0.04% decline in the second week of February compared to the previous week, with a larger drop than the sales market."

He then emphasized, "The government will consistently maintain the policy stance that has driven market stabilization, such as accelerating and enhancing the effectiveness of housing supply measures, eradicating speculation, and managing liquidity in the real estate market, to ensure that this housing price adjustment continues and expands."

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