Seoul Apartment Price Decline Narrows... 'Gangnam 3 Districts' Shift to Upward Trend

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

[Asia Economy Reporter Ryu Taemin] The decline in apartment prices in Seoul is narrowing. Following the Gangnam 3 districts (Gangnam, Seocho, Songpa-gu) entering an upward trend, the rate of decline is also decreasing in autonomous districts such as Seodaemun and Jongno-gu, which had previously shown high rates of decline. This is interpreted as being driven by new record prices in reconstruction complexes amid expectations of regulatory easing.

According to the weekly apartment price trend for the third week of March announced by the Korea Real Estate Board on the 24th, as of the 21st, the apartment sale price in Seoul fell by 0.01%. This is a smaller decline compared to the previous week (-0.02%).

In Seoul, 21 out of 25 autonomous districts recorded declines. The decline widened in Gangbuk-gu (-0.04% → -0.05%) and Jung-gu (-0.03% → -0.04%), which had shown high rates of decline the previous week. The Gangnam 3 districts, which had turned to a flat trend the previous week, shifted to an upward trend. Gangnam-gu (0.01%) and Seocho-gu (0.01%) turned to an increase as new record prices emerged mainly in reconstruction areas amid expectations of regulatory easing. Songpa-gu (0.00%) maintained a flat trend as urgent sales in major areas such as Jamsil and Sincheon-dong were exhausted and asking prices rose.

Incheon (-0.04% → -0.02%) saw a reduced rate of decline. Dong-gu (-0.04%) continued to decline mainly in large complexes in Songhyeon-dong, and Seo-gu (-0.03%) also continued to decline mainly in (quasi) new buildings in Cheongna and Gajeong-dong due to weakened buying demand. Jung-gu (0.00%) and Michuhol-gu (0.00%) turned flat due to cautious sentiment and sluggish transactions.

Gyeonggi-do (-0.04% → -0.03%) saw a slight decrease in the rate of decline. Icheon-si (0.25%) continued its high rate of increase. On the other hand, Anyang Dongan-gu (-0.16%) saw an expanded decline mainly due to falling asking prices in Gwanyang and Pyeongchon-dong.

Sejong saw apartment prices fall by 0.19% last week, showing the same rate of decline as the previous week (-0.19%).

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

The apartment jeonse (long-term lease) market last week maintained the rate of decline in the metropolitan area (-0.04%) and Seoul (-0.03%). In some areas, urgent sales were absorbed and listings slightly decreased, reducing the rate of decline, but overall, the accumulation of listings continued, leading to declines mainly in high-priced or older buildings.

South of the Han River, Gangnam-gu (-0.02%) declined mainly in older buildings in Samseong and Daechi-dong, and Songpa-gu (-0.01%) declined mainly in Munjeong and Pungnap-dong. Seocho-gu (-0.02%) continued to decline mainly in older buildings in Jamwon-dong and popular complexes in Banpo-dong.

In other metropolitan areas, Incheon recorded -0.13%, a larger decline than the previous week (-0.10%). Seo-gu (-0.40%) saw an expanded decline mainly in new buildings in Cheongna and Gajeong-dong, and Yeonsu-gu (-0.29%) saw an expanded decline mainly in Songdo New City, where the relative price level is high, due to accumulation of listings.

Gyeonggi-do was -0.03%, a slight decrease in the rate of decline compared to the previous week (-0.04%). Yongin Suji-gu (-0.13%) saw accumulation mainly in Dongcheon and Sanghyeon-dong, Gwangmyeong-si (-0.11%) mainly in large complexes in Cheolsan-dong. Siheung-si (-0.11%) had urgent sales mainly in Baegot and Jonam-dong, and Suwon Yeongtong-gu (-0.09%) saw accumulation of listings due to nearby new supply, leading to asking price declines mainly in Maetan and Yeongtong-dong.

Sejong saw jeonse prices fall by 0.32% last week, a significant decrease in the rate of decline compared to the previous week (-0.65%).

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