Seoul Apartment Prices Turn Downward in February for the First Time in 21 Months

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

[Asia Economy Reporter Ryu Tae-min] Last month, housing sale prices in Seoul and the metropolitan area turned downward for the first time in 1 year and 9 months.

According to the nationwide housing price trend released by the Korea Real Estate Board on the 15th, the nationwide comprehensive housing sale price last month rose by 0.3%, showing a decrease in the rate of increase compared to the previous month (0.10%). The metropolitan area (0.06%→-0.03%) and Seoul (0.04%→-0.04%) turned to a decline, and the provinces (0.14%→0.08%) also saw a slowdown in the rate of increase.

In Seoul, 23 autonomous districts recorded negative growth except for Seocho-gu (0.02%) and Dongjak-gu (0.01%). In Gangnam, Songpa-gu (-0.09%) saw declines mainly in popular complexes in Jamsil-dong, and Gangnam-gu (-0.03%) experienced declines mainly in some small and medium-sized units. A total of 11 districts turned to a decline for the first time in 1 year and 9 months (0.08%→-0.02%).

Gyeonggi Province (-0.04%) turned downward as listings accumulated and transactions were mainly of urgent sales, while Incheon (0.06%) rose mainly in some low to mid-priced or older buildings, but the rate of increase shrank compared to the previous month.

Among the provincial metropolitan cities, Gwangju (0.23%) and Busan (0.05%) rose, but Daejeon (-0.08%) declined due to inventory accumulation and decreased transaction volume, and Daegu (-0.28%) declined due to the impact of new housing supply.

The nationwide monthly comprehensive housing jeonse price was 0.00%, turning to flat from an increase of 0.07% in the previous month. The metropolitan area (0.01%→-0.07%) and Seoul (0.04%→-0.06%) turned from increase to decline, and the provinces (0.12%→0.06%) saw a reduced rate of increase.

In Seoul (-0.06%), jeonse demand decreased due to the burden of loan interest rates and the use of renewal contracts. Incheon (-0.17%) turned downward as inventory accumulated in areas such as Yeonsu and Seo-gu due to the impact of new housing supply, and Gyeonggi (-0.04%) continued its downward trend mainly in small and medium-sized older buildings in cities like Uiwang and Hwaseong.

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