National Apartment Prices Fall for the First Time in 2 Years and 5 Months... All Gangnam 3 Districts Show Negative Growth

Korea Real Estate Board, Nationwide Weekly Apartment Price Trends for the Third Week of February
First Nationwide Housing Price Decline in 2 Years and 5 Months Since September 2019
Seocho-gu Also Records Negative Growth, All Three Gangnam Districts Show Weakness

[Asia Economy Reporter Kangwook Cho] Nationwide apartment prices have turned downward for the first time in 2 years and 5 months. Apartment prices in Seocho-gu, Seoul also recorded a decline, causing all three Gangnam districts to show weakness.

According to the "Weekly Apartment Price Trend for the Third Week of February 2022 (as of the 21st)" released by the Korea Real Estate Board on the 24th, nationwide apartment prices fell by 0.01% compared to the previous week. This marks the first nationwide apartment price decline in 128 weeks, or about 2 years and 5 months, since the second week of September 2019.

The apartment price change rate in Seoul was -0.02%, maintaining the same decline as the previous week, while apartment prices in Gyeonggi (-0.03%) and Incheon (-0.02%) saw their decline rates increase by 0.01 percentage points each compared to last week. Declines also significantly widened in Sejong (-0.24%) and Daegu (-0.13%). The decline in the five major metropolitan cities (-0.02% → -0.03%) also expanded, and provincial apartment prices, which had risen by 0.01% last week, recorded no change this week. This halted the upward trend for the first time in about 1 year and 9 months since the first week of May 2020 (0.00).

In Seoul, apartment prices in Seocho-gu fell by 0.01%. Seocho-gu had been the only district among the three Gangnam districts to remain stable until last week. However, except for some newly built apartments in Banpo-dong, most complexes showed slight declines this week, marking a downturn for the first time in about 1 year and 8 months since June 1, 2020 (-0.04%). In Gangdong-gu (-0.02% → -0.03%), the decline widened mainly in large complexes in Sangil and Myeongil-dong. Songpa-gu (-0.02% → -0.02%) saw declines mainly in popular complexes in Jamsil and Sincheon-dong. Gangnam-gu (-0.01% → -0.01%) experienced increases in reconstruction or mid-to-large sized apartments in Dogok and Apgujeong-dong, but declines in small-to-medium sized units, showing weakness for two consecutive weeks.

Apartment Sale Price Index Change Rate by Province / Provided by Korea Real Estate Board.

In Gyeonggi Province, nine cities and districts including Siheung (-0.05% → -0.15%), Hanam (-0.06% → -0.12%), and Hwaseong (-0.08% → -0.11%) saw an accumulation of listings and an expanded decline, as overall buying demand cooled and the downward trend continued. On the other hand, Pyeongtaek and Uijeongbu, which have development prospects such as the metropolitan express railway (GTX) connection pledges by presidential candidates, each rose by 0.01% this week after being stable and down 0.01% respectively last week, showing a turnaround to an upward trend. In Incheon, Seo-gu (0.01% → -0.05%) showed a decline centered on major complexes in Gyeongseo and Cheongna-dong, and Dong-gu (-0.04% → -0.02%) showed a decline mainly in Manseok-dong as trading sentiment weakened.

Nationwide apartment jeonse (long-term lease) prices fell by 0.01% compared to last week, continuing a negative trend for two consecutive weeks. Seoul apartment jeonse prices declined by 0.03%, the same as last week, while Incheon’s decline doubled from -0.06% last week to -0.12% this week. In particular, Yeonsu-gu in Incheon saw a 0.38% drop in jeonse prices due to new apartment move-ins in Songdo New Town, and Seo-gu fell by 0.30% as jeonse listings accumulated. In Gyeonggi, as listings generally piled up, declines widened in Uiwang (-0.15% → -0.26%) mainly in small-to-medium units in Naeson-dong, Anyang Dongan-gu (-0.10% → -0.18%) in Pyeongchon and Hogye-dong, and Hwaseong (-0.16% → -0.17%) mainly in newly built apartments in Jangji and Cheonggye-dong. Accordingly, the jeonse price change rate in the Seoul metropolitan area also recorded -0.05%, expanding the decline from last week’s -0.04%.

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