Seoul Apartment Prices Fall for 4 Consecutive Weeks... Gangnam 4 Districts Also Decline

Seoul Apartment Prices Fall 0.03% Over 3 Weeks
Buying Demand Disappears Amid High Interest Rates and Economic Slowdown

As interest rate hikes, peak house price theories, and economic outlook clouds loom, the decline in apartment prices in Seoul is widening. With buyers disappearing, the supply of listings continues to increase steadily. Apartment prices in the Gangnam 4 districts (Gangnam, Seocho, Songpa, Gangdong) have turned downward for the first time since the March presidential election.

According to the Korea Real Estate Board's survey on the 23rd, apartment prices in Seoul fell by 0.03% this week compared to last week. This marks the fourth consecutive week of decline, with the drop widening from last week's -0.02%. The decline is the largest since the February 28 survey this year (-0.03%).

Notably, the southeastern area grouped as the Gangnam 4 districts saw apartment prices fall by 0.01% compared to last week. This is the first decline in over three months since the March 7 survey just before the presidential election (-0.01%).

Apartment prices in Seocho-gu rose by 0.02%, maintaining the same level as last week, with some ultra-high-end apartment complexes continuing to see record-high transactions, although the transaction volume is not large.

Gangnam-gu recorded a flat trend for three consecutive weeks following last week, while Songpa-gu (-0.02%) and Gangdong-gu (-0.03%) saw their declines widen by 0.01 percentage points (p) each compared to last week.

Yongsan-gu, which had been strong since the presidential election due to the relocation of the presidential office, stopped its 12-week rising streak and turned flat recently.

The decline is intensifying in the Gangbuk area, where the drop is becoming larger.

Gangbuk-gu's decline widened from -0.01% last week to -0.05% this week, Dobong-gu from -0.02% to -0.04%, and both Nowon-gu and Seongbuk-gu saw their declines expand from -0.04% to -0.05% respectively.

The Real Estate Board analyzed, "Due to various downward pressures such as the burden of rapid interest rate hikes, economic crisis concerns, and the re-designation of land transaction permission zones, buying demand and transaction activities have shrunk, causing Seoul overall to decline for four consecutive weeks."

The real estate sales markets in Gyeonggi-do and Incheon are also experiencing sharper declines.

Apartment prices in Gyeonggi-do (-0.03%) and Incheon (-0.06%) also saw their declines widen by 0.01 percentage points compared to last week, leading to a 0.01 percentage point increase in the decline rate of apartment prices in the Seoul metropolitan area (-0.04%).

In Gyeonggi-do, Goyang-si, which had been strong recently due to reconstruction expectations in the first-generation new towns, fell by 0.01%, halting its upward trend, while Bundang-gu in Seongnam rose by 0.03%, slowing from last week's 0.04% increase.

In the provinces, apartment prices in Busan, which had been flat for the past four weeks, fell by 0.01% this week, turning weak.

Daegu (-0.18%), Sejong (-0.15%), Jeonnam (-0.08%), Daejeon (-0.04%), and Ulsan (-0.02%) also showed weakness, resulting in a nationwide apartment price decline of 0.03% this week, larger than last week's -0.02%.

Jeonse prices fell by 0.01% in Seoul for the second consecutive week due to the off-season, while Incheon (-0.09%) and Gyeonggi (-0.02%) also continued to weaken.

Since the beginning of the year, the real estate market has raised concerns about a possible "August Jeonse and monthly rent crisis," but as of mid-June, the rental market has shown no significant disturbance. Rather, buying sentiment has weakened, halting price increases, and the supply of Jeonse and monthly rental listings in the metropolitan area is hitting record highs daily.

Since the beginning of the year, the real estate market has raised concerns about a possible "August Jeonse and monthly rent crisis," but as of mid-June, the rental market has shown no significant disturbance. Rather, buying sentiment has weakened, halting price increases, and the supply of Jeonse and monthly rental listings in the metropolitan area is hitting record highs daily.

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