Nationwide Apartment Prices Scream Louder... Seoul Falls for 8 Consecutive Weeks with Widening Decline

Korea Real Estate Board Apartment Price Trends for the 3rd Week of July

As the nationwide decline in apartment prices widens, Seoul continues its downward trend for the eighth consecutive week.

According to the 'July 3rd Week Apartment Price Trend' data released by the Korea Real Estate Board on the 21st, the nationwide apartment sale prices fell by 0.04%, an increased decline compared to last week (-0.03%). The decline widened in the metropolitan area (-0.05% → -0.06%), Seoul (-0.04% → -0.05%), and provinces (-0.02% → -0.03%). Among the 176 cities, counties, and districts where price trends are announced, the number of areas with price increases (43→35) and stable prices (16→13) decreased, while areas with price declines (117→128) increased compared to last week.

Seoul apartment prices fell by 0.05%, continuing the downward trend for eight consecutive weeks.

The Real Estate Board explained, "With the base interest rate hike, further increases in loan interest rates are expected, leading to a decrease in buying demand and continued inventory buildup, which has increased downward pressure on the market, resulting in a wider overall decline in Seoul."

In Gangbuk, the decline is expanding mainly in the northeastern area (-0.09%), with Dobong-gu (-0.14%) experiencing declines centered on older apartments in Banghak and Changdong, Nowon-gu (-0.13%) seeing declines mainly in large-scale small-to-medium apartments in Sanggye-dong, and Gangbuk-gu (-0.13%) facing inventory buildup and declining transactions mainly in Mia New Town, all showing an increased decline compared to last week.

Gangnam (-0.02%), Songpa (-0.02%), and Gangdong-gu (-0.02%) experienced declines due to intensified inventory buildup, while Guro (-0.07%), Geumcheon (-0.07%), and Gwanak-gu (-0.05%) showed notable declines mainly in large-scale small-to-medium apartment complexes, driving the overall decline in the Gangnam area last week. Seocho-gu (0.03%), centered on redevelopment and (quasi) new apartments in Banpo-dong, showed a slight firming trend alone with steady buyer inquiries.

Apartment Sale Price Index Change Rate by Province

This year, the Seoul apartment sales market has fallen into an extreme transaction cliff.

According to the Seoul Real Estate Information Plaza, apartment sales in Seoul (based on contract date) in the first half of this year totaled 7,793 cases, plummeting to about 30% of the previous minimum of 25,828 cases in the first half of last year.

Although there are still two weeks left for the registration reporting deadline of June sales contracts (within 30 days after the contract), the prevailing view and trend suggest that it will be difficult for Seoul apartment sales volume in the first half to exceed 10,000 cases.

Gyeonggi (-0.04% → -0.06%) and Incheon (-0.07% → -0.08%) also continue their downward trend amid overall buyer sentiment weakening and ongoing effects of new housing supply.

In the first half of this year, real estate transaction volume in Gyeonggi Province decreased by more than 40% compared to the first half of last year. In particular, apartment transaction volume hit the lowest level since Gyeonggi started compiling related statistics in 2006, recording fewer transactions than during the 2008 global financial crisis.

According to Gyeonggi Province, real estate transaction volume from January to June was 140,751 cases, down 42.6% compared to the same period last year (245,055 cases). This is also 26.1% lower than the second half of last year (190,371 cases).

Meanwhile, nationwide jeonse (long-term lease) prices maintained last week's decline rate (-0.03%). The decline widened in the metropolitan area (-0.04% → -0.05%) and Seoul (-0.02% → -0.03%), while provinces (-0.02% → -0.02%) maintained the same decline rate.

Among the 176 cities, counties, and districts where jeonse prices are announced, the number of areas with price increases (60→53) and stable prices (23→19) decreased, while areas with price declines (93→104) increased compared to last week.

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