Seoul Apartment Prices Fall for 13 Consecutive Weeks... Largest Drop in 42 Months

Seoul down 0.11%, Capital Region down 0.18%
"Continued downward adjustments amid rate hikes and market decline concerns"

Photo by Yonhap News

Amid the nationwide real estate market experiencing the worst transaction freeze in history, apartment prices in Seoul have fallen at the largest rate in 3 years and 6 months. Since turning downward on May 30, prices have declined for 13 consecutive weeks.

According to the "Weekly Apartment Price Trends for the 4th Week of August" released by the Korea Real Estate Board on the 25th, apartment prices in Seoul fell by 0.11%, widening the decline from last week's -0.09%. This is the largest drop since the first week of March 2019 (-0.11%).

The Real Estate Board analyzed, "Due to expectations of further interest rate hikes and ongoing concerns about continued declines in housing prices, buyer inquiries remain sluggish, and the downward adjustment of listing prices has continued, leading to an expanded rate of decline."

Apartment Sale Price Index Change Rate by Province

The rate of decline has widened in most areas of Seoul.

In Gangbuk, especially Nowon-gu (-0.23%) led the decline mainly in the areas of Gongneung, Junggye, and Hagye-dong; Dobong-gu (-0.22%) mainly in Ssangmun and Chang-dong; and Seongbuk-gu (-0.21%) mainly in large complexes in Gireum and Bomun-dong, driving the expansion of the decline.

In the Gangnam area, Songpa-gu (-0.10%) is seeing a widening decline mainly in large complexes in Jamsil-dong. Seocho-gu, which turned downward last week for the first time in 6 months, recorded -0.02% this week, showing an increasing rate of decline. Gangnam-gu (-0.03% → -0.04%) also saw a larger drop compared to last week. Yongsan-gu recorded -0.02%, increasing the decline from last week's -0.01%.

The downward trend in Incheon and Gyeonggi Province is becoming steeper.

Incheon recorded -0.26% this week, a further decline from last week's -0.18%. The Real Estate Board stated, "The wait-and-see attitude expecting further price drops continues," adding, "Especially Yeonsu-gu (-0.29%) mainly in Songdo New Town, Gyeyang-gu (-0.29%) mainly in Ihwa and Byeongbang-dong, and Bupyeong-gu (-0.28%) mainly in Samsan and Sangok-dong are declining, expanding the overall rate of decline in Incheon."

Gyeonggi Province recorded -0.20%, showing a more pronounced downward trend compared to last week's -0.12%. While the inventory backlog is worsening in most areas of Gyeonggi, declines were significant in Uijeongbu-si (-0.38%), Yangju-si (-0.36%), Gwangju-si (-0.33%), Uiwang-si (-0.31%), and Yeongtong-gu in Suwon (-0.30%).

As a result, the entire Seoul metropolitan area recorded a 0.18% decline this week, following last week's -0.12%.

The five major metropolitan cities (-0.10% → -0.16%) and Sejong (-0.20% → -0.37%) also continued their downward trends, leading to a 0.11% decline in provincial areas this week, following last week's -0.07%.

Jeonse (long-term lease) prices are also seeing an increased rate of decline nationwide, similar to sales prices.

Seoul recorded -0.06% this week, following last week's -0.04%. The Real Estate Board explained, "Due to the shift to half-jeonse and monthly rent and the impact of lease renewal contracts, new jeonse demand continues to decrease. Along with the burden of loan interest caused by interest rate hikes and ongoing inventory backlog, listing prices are being adjusted downward, expanding the overall rate of decline in Seoul."

The nationwide weekly apartment jeonse price fell by -0.13%, widening the decline from last week's -0.07%. Both the Seoul metropolitan area (-0.10% → -0.18%) and provincial areas (-0.05% → -0.09%) declined.

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