Seoul Apartment Prices End Two-Week Rally, Shift to Stable Trend

Apartment view in Seoul / Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Ryu Taemin] After a rise last week, apartment prices in Seoul have returned to a flat trend after two weeks. This appears to be due to an increase in listings and a wait-and-see attitude following the announcement of a temporary exclusion from the heavy capital gains tax for multi-homeowners. In particular, the price increase in areas such as Gangnam, which had led the rise, also showed a slight decrease in the rate of increase.

According to the weekly apartment price trend for the second week of May announced by the Korea Real Estate Board on the 12th, as of the 9th, the apartment sale price change rate in Seoul recorded 0.00%. This marks a return to a flat trend two weeks after rising 0.01% last week.

In Seoul, 9 out of 25 autonomous districts recorded declines. Among the districts, Seocho-gu (0.04%) and Yongsan-gu (0.04%) showed the largest increases. On the other hand, Jung-gu (-0.02%) mainly in small to medium-sized units, and Nowon (-0.02%) and Seongdong-gu (-0.01%) mainly in large complexes experienced inventory accumulation and decreased buying demand, leading to an overall decline in Gangbuk.

Incheon (0.00%→-0.04%) turned to a decline. Yeonsu-gu (-0.09%) declined mainly in mid-to-low priced units in Dongchun-dong, and Seo-gu (-0.07%) declined mainly in small to medium-sized complexes in Majon and Dangha-dong. Dong-gu (-0.07%) experienced inventory accumulation mainly in Songhyeon-dong and declined, while Gyeyang-gu (0.00%) turned flat due to weakened transaction sentiment.

Similarly, Gyeonggi-do (0.00%→-0.03%) also turned to a decline. Icheon-si (0.18%) rose mainly in mid-to-low priced units in Changjeon and Jeungpo-dong with good living conditions, and some first-generation new towns such as Goyang Ilsandong-gu (0.08%), Seongnam Bundang-gu (0.03%), and Bucheon-si (0.02%) rose due to expectations of regulatory easing. On the other hand, Hwaseong-si (-0.18%) declined mainly in Dongtan New Town, and Suwon Jangan-gu (-0.16%) and Osan-si (-0.13%) declined due to transaction sentiment weakening from last year's rapid price increases.

Sejong saw apartment prices fall by 0.09%, a larger decline than the previous week (-0.19%).

Seoul area real estate agency exterior (Photo by Yonhap News)

The apartment jeonse (long-term lease) market in Seoul (0.00%) remained flat as in the previous week. South of the Han River, Gangnam-gu (0.00%) showed a wait-and-see attitude mainly in Daechi-dong. Seocho-gu (-0.01%) turned to a decline due to inventory accumulation mainly in Bangbae and Yangjae-dong.

In other metropolitan areas, Incheon recorded -0.03%, a larger decline than the previous week (-0.01%). Yeonsu-gu (-0.18%) saw an expanded decline as inventory accumulated mainly in Songdo and Dongchun-dong along with sale prices.

Gyeonggi-do recorded -0.01%, a slight decrease in the rate of decline compared to the previous week (-0.02%). Icheon-si (0.17%) and Pyeongtaek-si (0.12%) continued to rise due to the influx of nearby industrial complexes and related companies. On the other hand, Yangju-si (-0.28%), Suwon Yeongtong-gu (-0.10%), and Suwon Jangan-gu (-0.02%), affected by new housing supply, continued to decline.

Sejong's jeonse prices fell by 0.28% last week, a slightly larger decline than the previous week (-0.26%).

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