KB Nationwide Housing Prices Rise 0.21% in February... Growth Rate Slows Down

The Lowest Growth Rate in 1 Year and 9 Months

[Image source=Yonhap News]

[Asia Economy Reporter Kim Min-young] The nationwide housing price increase rate has recorded its lowest level in 1 year and 9 months.

According to the KB Real Estate Monthly Housing Market Trends data on the 27th, the average sale price of houses nationwide (including apartments, row houses, multi-family houses, and detached houses) rose by 0.21% compared to the previous month. This is the lowest increase rate since May 2020, when it recorded 0.14%.

In particular, the slowdown in the increase rate of apartments is noticeable. The nationwide apartment sale price increase rate dropped sharply from 1.54% in November last year to 0.63% in December, and has continued to decline to 0.32% in January and 0.16% in February this year.

In Seoul, the housing sale price increase rate this month was 0.20%, down 0.01 percentage points from the previous month (0.21%). In Gyeonggi Province, the increase rate sharply slowed from 0.25% to 0.11%. On the other hand, Incheon saw an increase rate rise from 0.37% to 0.49%. Overall, the Seoul metropolitan area recorded a slight slowdown in the increase rate to 0.20% from 0.25% the previous month.

The five major metropolitan cities in the provinces showed a 0.15% increase, a 0.13 percentage point slowdown from last month (0.28%). Other provincial areas also showed a reduced housing price increase rate of 0.31%, down from 0.36% the previous month.

The rise in jeonse (long-term lease) prices is also slowing. The nationwide housing jeonse price increase rate was 0.22% this month, slightly down from 0.27% last month. While Seoul (0.24%→0.14%) and Gyeonggi (0.23%→0.10%) saw a decrease in the rate of increase, Incheon’s increase rate expanded from 0.28% to 0.43%.

Seoul’s sale price outlook index recorded 83. Among the 17 cities and provinces nationwide, only Gyeongnam (101) exceeded 100 in the outlook index as of this month.

The KB Real Estate Price Outlook Index quantifies the expected rise or fall in housing prices by surveying 4,000 real estate agencies nationwide. A value above 100 indicates a higher expectation of price increases, while below 100 indicates a greater expectation of price decreases.

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