In Provinces with All Regulatory Zones Lifted... Apartment Prices Fell for 15 Consecutive Weeks

Seoul Down 0.17%... 17 Consecutive Weeks of Decline

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As the government lifted regulatory zones across all provinces except Sejong City, apartment prices in the provinces have continued to decline for 15 consecutive weeks, with the rate of decline widening each week.

According to the Korea Real Estate Board's weekly apartment price trend for the third week of September on the 22nd, apartment prices in the provinces fell by 0.15%, marking a decline for 15 consecutive weeks since the survey on June 13 (-0.01%). The rate of decline has also expanded compared to last week (-0.13%), showing a growing downward trend each week.

The five major metropolitan cities also saw a 0.22% drop this week, with the decline rate increasing compared to the previous week (-0.18%). Daejeon fell by 0.32% this week following last week's -0.27%, and Sejong recorded a 0.44% drop, widening from the previous week's (-0.40%).

Source: Korea Real Estate Board

The downward trend in apartment prices continues regardless of the distinction between provinces and the Seoul metropolitan area.

Seoul apartment prices fell by 0.17% this week, marking 17 consecutive weeks of decline. The rate of decline increased compared to last week (-0.16%). This is the largest weekly drop in nearly 9 years and 9 months since the survey on December 10, 2012 (-0.17%).

Dobong-gu (-0.31%) is seeing price adjustments mainly in Banghak and Changdong areas; Nowon-gu (-0.28%) in Sanggye, Junggye, and Hagye-dong; Seodaemun-gu (-0.25%) in large complexes in Bukgajwa and Namgajwa-dong; and Jung-gu (-0.25%) mainly in large complexes in Sindang-dong, all continuing downward price adjustments. Yongsan also fell by 0.10%, with the decline rate increasing from last week (-0.07%).

In Gangnam, Songpa-gu (-0.22%) saw a larger decline compared to last week (-0.22%), mainly in older buildings in Munjeong-dong and large complexes in Jamsil-dong. Gangnam (-0.09% → -0.10%) and Seocho (-0.05% → -0.07%) districts also experienced widening declines.

The Real Estate Board analyzed, "Concerns over additional interest rate hikes and the perception that housing prices will continue to fall have sharply reduced buyer inquiries. As a result, price adjustments downward are continuing mainly in key complexes, expanding the rate of decline."

Gyeonggi Province also saw a general downward adjustment in listing prices, falling 0.25% following last week's -0.21%. Incheon recorded a stable (-0.29%) figure amid worsening inventory mainly in Songdo New Town and ongoing declining transactions.

Accordingly, apartment prices in the Seoul metropolitan area fell by 0.23% this week, following last week's -0.20%.

With the simultaneous steepening decline in apartment prices in both the metropolitan area and provinces, nationwide apartment prices fell by 0.19% following last week's -0.16%.

Jeonse (long-term lease) prices are also continuing to weaken.

Seoul (-0.12% → -0.16%), Gyeonggi (-0.20% → -0.27%), Incheon (-0.28% → -0.32%), the metropolitan area (-0.19% → -0.24%), and provinces (-0.10% → -0.14%) all saw an expansion in the rate of decline.

The Real Estate Board explained, "In Seoul, due to the burden of interest on jeonse loans, there is a continued preference for renewal, semi-jeonse, and monthly rent contract types, leading to downward adjustments in prices of new jeonse listings." They added, "Price reductions and actual transaction declines are occurring simultaneously mainly in key complexes, expanding the rate of decline."

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