Seoul Apartment Prices Decline Widens... 24 out of 25 Districts Show Negative Growth

Apartment buildings in the Seoul area (Photo by Yonhap News)

[Asia Economy Reporter Ryu Tae-min] The decline in apartment prices in Seoul has widened. Except for Seocho-gu, 24 autonomous districts recorded declines, turning to a weak trend. The jeonse prices in Seoul and the metropolitan area also continue to decline, similar to the previous week.

According to the weekly apartment price trend for the fourth week of February announced by the Korea Real Estate Board on the 3rd, as of the 28th of last month, apartment sale prices in Seoul fell by 0.03%. Previously, the decline rate had been -0.02% for two consecutive weeks, but this week the decline widened.

In Seoul, 24 out of 25 autonomous districts, except Seocho-gu, recorded declines. Seodaemun-gu (-0.08%), Jongno-gu (-0.08%), and Seongbuk-gu (-0.07%) showed high decline rates. Among the Gangnam 3 districts, which had shown high increases, Gangnam-gu continued to decline by 0.02% following last week, and Songpa-gu (-0.01%) also continued to decline. Seocho-gu turned from negative to stable at 0.00% this week.

Incheon (-0.02%→-0.00%) shifted from decline to stability. Dong-gu (-0.01%) and Gyeyang-gu (-0.01%) showed slight declines, but other areas all turned stable at 0.00%.

Gyeonggi-do (-0.03%→-0.02%) saw a slight decrease in the decline rate. Icheon-si (0.21%) and Ansan Sangnok-su (0.16%), which have expectations for the extension of the Metropolitan Express Railway (GTX), showed high growth rates. On the other hand, areas such as Siheung (-0.10%), Suwon Yeongtong (-0.06%), and Hwaseong (-0.06%) continued to decline due to weakened buying sentiment and transaction activity.

Sejong's apartment prices fell by 0.13% last week, narrowing the decline from the previous week (-0.24%).

A real estate agency in a densely populated apartment complex in Seoul. Photo by Hyunmin Kim kimhyun81@

The apartment jeonse market last week saw a reduced decline in the metropolitan area (-0.04%) and maintained the decline rate in Seoul (-0.03%). In Seoul, due to high jeonse price burdens, the spread of COVID-19, and seasonal off-season factors, most areas showed a declining trend, mainly in older and aging complexes that had previously seen high price increases.

South of the Han River, Gangnam-gu (-0.05%) continued to decline mainly in reconstruction and older complexes such as Gaepo and Daechi-dong, and Songpa-gu (-0.02%) continued to decline due to the burden of new housing supply in Geoyeo-dong causing inventory accumulation. Seocho-gu (-0.01%) turned to decline as high-priced areas like Jamwon and Banpo-dong accumulated inventory.

In other metropolitan areas, Incheon recorded -0.12%, maintaining the same decline rate as the previous week (-0.12%). Seo-gu (-0.33%) declined mainly in Cheongna and Gyeongseo-dong, affected by new housing supply; Yeonsu-gu (-0.31%) declined mainly in newly built large complexes in Songdo-dong; Jung-gu (-0.12%) declined mainly in small and medium-sized units in Jungsan-dong, maintaining the overall decline rate in Incheon.

Gyeonggi-do declined by -0.03%, narrowing from the previous week (-0.04%). Icheon-si (0.27%) rose mainly in Bubal-eup and Daewol-myeon, which have good accessibility to workplaces. Anyang Dongan-gu (-0.36%) declined due to inventory accumulation; Gwacheon-si (-0.08%) declined mainly in large complexes in Burim and Wonmun-dong; Yongin Suji-gu (-0.07%) declined mainly in Pungdeokcheon and Jukjeon-dong, with the decline rate expanding. Six cities and districts including Goyang Ilsandong-gu turned to decline, continuing the overall decline trend in Gyeonggi-do.

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