Seoul Housing Prices Stabilize in June... Impact of Interest Rate Hikes and Economic Recession Concerns

[Asia Economy Reporter Ryu Tae-min] Amid concerns over additional interest rate hikes and economic recession, which have led to a decrease in buying demand, the apartment sale prices in Seoul turned to a stable trend in June.

According to the nationwide housing price trend report released by the Korea Real Estate Board on the 15th, the comprehensive housing sale price change rate in Seoul last month recorded 0.00%, indicating a shift to stability. The Real Estate Board explained, "Buying demand decreased due to additional interest rate hikes and recession concerns."

In Seoul, Seocho-gu (0.10%) saw the largest increase, mainly driven by reconstruction and new complexes. This was followed by Yongsan-gu (0.09%) and Gangnam-gu (0.03%), which rose due to expectations of regional development. On the other hand, Nowon-gu (-0.16%) declined mainly in older complexes in Wolgye and Sanggye-dong, and Eunpyeong-gu (-0.06%) fell mainly in Nokbeon and Eungam-dong, where listings have accumulated.

Gyeonggi Province (-0.05%) and Incheon (-0.14%) continued to experience a decline as the accumulation of listings persisted due to new housing supply, and buyer sentiment weakened.

The five major metropolitan cities in the provinces fell by 0.11%, a larger decline compared to the previous month (-0.08%). Other provincial areas rose by 0.03%, a smaller increase compared to the previous month (0.06%).

The nationwide monthly comprehensive jeonse (long-term lease) price fell by 0.02%, turning from a previous month’s stable 0.00%. The metropolitan area (-0.02% → -0.04%) and Seoul (-0.01% → -0.02%) saw an expanded decline, while provincial areas (0.01% → -0.01%) turned to a decline.

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