Seoul Apartment Prices Also Fall by Record Largest Margin... Nationwide Sale and Jeonse Market in Deep Freeze

Photo by Asia Economy

As the real estate market downturn deepens, apartment prices in Seoul also fell by the largest margin ever this week. Last week, nationwide, metropolitan area, and regional apartment sale and jeonse prices, as well as Seoul jeonse prices, all recorded historic maximum declines.

According to the Korea Real Estate Board's "Weekly Apartment Price Trends for the First Week of November" released on the 10th, apartment prices in Seoul fell by 0.38% compared to the previous week.

This marks the 24th consecutive week of decline and is the largest weekly drop since the Real Estate Board began surveying prices in May 2012.

By district, the decline in apartment prices in Nowon (-0.55%) and Dobong-gu (-0.56%) widened to the 0.5% range, continuing the weak trend.

In the Gangnam area, Gangnam-gu saw its decline deepen from -0.28% last week to -0.34% this week, while Songpa-gu's decline narrowed from -0.60% to -0.58%, and Seocho-gu's from -0.16% to -0.13%.

The Real Estate Board explained, "Concerns over further housing price declines and expected interest rate hikes have led to continued buyer hesitation and a sharp drop in transactions, resulting in an expanded rate of decline compared to last week."

Source: Korea Real Estate Board

Apartment prices nationwide and in the metropolitan area also fell by 0.39% and 0.47%, respectively, setting new records for the largest weekly declines.

Gyeonggi (-0.49%) and Incheon (-0.60%) also saw their declines deepen compared to last week (-0.41%, -0.51%).

Apartment prices in Gwacheon dropped further from -0.48% last week to -0.67% this week, and in Gwangmyeong, the decline widened from -0.56% to -0.61%.

In Seongnam's Bundang-gu, apartment prices fell 0.28%, a larger drop than last week's -0.23%, while Seongnam's Sujeong-gu saw a significant increase in decline from -0.50% last week to -0.84% this week.

Hanam City also saw a larger decline this week at 0.47%, compared to -0.43% last week.

The jeonse market continues to stagnate as well.

This week, apartment jeonse prices in Seoul (-0.48%), Gyeonggi (-0.61%), and Incheon (-0.62%) all recorded the largest declines since the Real Estate Board began surveying prices.

The Real Estate Board explained, "With increased burdens from jeonse loan interest, tenants are continuing to move to monthly rental contracts, and the conversion of sale listings to jeonse listings is progressing, deepening the inventory backlog. As falling transactions and downward price adjustments of listings proceed, the rate of decline is expanding."

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