Real Estate R114 "Seoul Apartment Price Increase Areas Further Shrink... Stable for 3 Consecutive Weeks"

[Asia Economy Reporter Kim Hyemin] The Seoul apartment sale price growth rate has remained flat for three consecutive weeks. Among the autonomous districts, only Gangnam-gu and Dongjak-gu saw increases, further shrinking the number of rising areas. The buying demand has weakened further due to pressure from interest rate hikes and concerns over an economic downturn.

According to Real Estate R114 on the 9th, the Seoul apartment sale price in the first week of July recorded a flat rate (0.00%) for three consecutive weeks. While general apartments fell by 0.01% compared to the previous week, reconstruction complexes rose by 0.03%.

Among the autonomous districts, only Gangnam (0.03%) and Dongjak (0.02%) increased, reducing the number of rising areas further. However, the number of declining areas also decreased to nine, and the number of flat areas increased, resulting in a flat trend this week as well. Dobong-gu fell the most sharply by 0.08% compared to the previous week, followed by ▲Gwanak (-0.06%) ▲Eunpyeong (-0.03%) ▲Seongbuk (-0.03%). Real Estate R114 noted, "Gangnam's price rise was led by reconstruction apartments, continuing the upward trend."

New towns shifted from decline to flat after three weeks. While first-generation new towns led price increases, by region, ▲Ilsan (0.07%) and ▲Bundang (0.01%) rose, whereas ▲Pyeongchon (-0.03%) ▲Wirye (-0.01%) and ▲Pangyo (-0.01%) declined. Gyeonggi and Incheon fell by 0.02% compared to the previous week. By region, the declines were in order: ▲Osan (-0.09%) ▲Hwaseong (-0.06%) ▲Bucheon (-0.04%).

The jeonse (long-term lease) market in Seoul rose by 0.01% compared to the previous week, but weakness continues amid the summer off-season, early heatwave, and rainy season effects. By region, ▲Gangnam (-0.07%) ▲Dobong (-0.07%) ▲Gangdong (-0.05%) fell, while ▲Nowon (0.04%) ▲Seongdong (0.03%) ▲Mapo (0.03%) rose.

Gyeonggi and Incheon fell by 0.02%, while new towns rose by 0.01%, marking a rise after seven weeks.

Lim Byungcheol, chief researcher at Real Estate R114, said, "Since the transfer tax surcharge suspension in May, listings have accumulated, but buying demand has been extremely weak, prolonging the transaction stagnation." He added, "In the second half, the apartment market will face mixed factors of rises and falls, and due to pressure from interest rate hikes and economic downturn concerns, it will be difficult for buying sentiment to recover."

Chief researcher Lim also forecasted, "Although the loan-to-value ratio (LTV) and loan limits will be expanded for first-time homebuyers in the third quarter, the debt service ratio (DSR) regulations will also be expanded on a borrower basis, and further base rate hikes are expected, making it difficult for demand to expand again."

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