Apartment Sale and Jeonse Prices Both Widen Decline... Seoul Sees 10 Consecutive Weeks of Decrease

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The nationwide real estate market continues to stagnate without signs of rebound. Apartment prices in Seoul have fallen for 10 consecutive weeks, and Seocho-gu, known as 'Seocho Bulpae,' has stopped rising after 20 weeks.

According to the 'Weekly Apartment Price Trends for the First Week of August' released by the Korea Real Estate Board on the 4th, Seoul's sale prices fell by 0.07% last week, marking a decline for 10 consecutive weeks.

The Real Estate Board analyzed, "With continuous interest rate hikes expected in the future, a buyer-favored market is forming, and the price decline of listings is expanding mainly in large complexes, maintaining the decline rate from last week."

Among the 14 districts in Gangbuk, most areas declined, recording -0.11% following last week. In Gangbuk-gu (-0.16%), the decline centered around Mia-dong where falling transactions occurred; in Nowon-gu (-0.15%), mainly large complexes in Sanggye and Wolgye-dong; in Seongbuk-gu (-0.15%), mainly Donam and Gireum-dong; and in Seodaemun-gu (-0.15%), mainly large complexes in Namgajwa-dong.

Yongsan-gu, which fell by 0.05% last week, stopped its three-week decline and remained flat as the re-promotion of the Yongsan International Business District was reflected as a positive factor.

The 11 districts in Gangnam fell by 0.03%. Songpa-gu (-0.05%) is undergoing price adjustments mainly in major complexes in Jamsil-dong, with the decline rate expanding compared to the previous week (-0.04%). Gangnam-gu also saw the decline rate increase from -0.01% last week to -0.02% this week. Seocho-gu (0.00%) showed a mixed trend, with rises centered around Banpo and Jamwon-dong, but declines in other complexes, resulting in a flat trend.

Apartment Sale Price Index Change Rate by Province

Apartment prices in Gyeonggi-do and Incheon fell by 0.09% and 0.11%, respectively, with the decline rate increasing compared to last week (-0.08%, -0.10%).

Accordingly, apartment prices across the entire metropolitan area also fell by 0.09%, expanding the decline compared to last week (-0.08%). This is the largest drop in about 3 years and 3 months since the survey on April 22, 2019 (-0.10%).

The effect of reconstruction in new towns has also faded amid interest rate hikes.

Apartment prices in Bundang-gu, Seongnam-si, Gyeonggi-do, where Bundang New Town is located, fell by 0.01%, reducing the decline compared to last week (-0.02%) but still falling for two consecutive weeks. Apartment prices in Goyang-si fell by 0.03%, expanding the decline compared to last week (-0.02%).

Among the provinces, weakness continued in Sejong (-0.18%), Daegu (-0.13%), and Daejeon (-0.10%), resulting in a nationwide decline of 0.06%.

The jeonse (long-term lease) market remained weak, compounded by the summer off-season.

Seoul apartment jeonse prices fell by 0.03%, the same as last week, while Gyeonggi (-0.08%) and Incheon (-0.11%) saw their decline rates expand by 0.01 percentage points (p) compared to last week.

Accordingly, the entire metropolitan area's jeonse prices fell by 0.07%, marking the largest drop in about 3 years and 1 month since June 17, 2019 (-0.07%).

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