Seoul Apartment Prices Down 0.08% This Week... Cautious Stance Continues Despite Loan Easing

Apartment buildings in the Seoul area (Photo by Asia Economy DB)

[Asia Economy Reporter Ryu Tae-min] As the housing market transaction freeze prolongs, the decline in sale prices has steepened. Despite the announcement of follow-up measures from the Emergency Economic and Livelihood Meeting, including easing loan regulations, concerns over the real estate slump have not diminished, resulting in the largest drop in 2 years and 8 months.

According to Real Estate R114 on the 13th, the weekly apartment price change rate in Seoul recorded -0.08%, showing a larger decline compared to the previous week. Reconstruction apartments fell by 0.04%, and general apartments dropped by 0.09%. New towns decreased by 0.03%, and Gyeonggi and Incheon fell by 0.02%.

In Seoul, except for 3 districts (Geumcheon, Jongno, Jungnang) that recorded no change (0.00%), the remaining areas declined. By region: ▲Gangdong (-0.26%) ▲Guro (-0.23%) ▲Gwanak (-0.20%) ▲Jung-gu (-0.19%) ▲Dobong (-0.13%) ▲Yongsan (-0.10%) ▲Eunpyeong (-0.10%) fell.

In Gangdong, large apartment complexes such as Amsa-dong Seonsa Hyundai, Lotte Castle First, and Godeok-dong Godeok Raemian Hillstate dropped between 5 million to 50 million KRW, marking the largest decline for two consecutive weeks. In Guro, Sindorim-dong Sindorim Daerim 2nd Complex, Guro-dong Jugong 1st Complex, and Guro Doosan fell by 5 million to 30 million KRW. In Gwanak, Bongcheon-dong Gwanak Dream Town, Doosan, and Seonghyeon Dong-A were adjusted downward by 5 million to 25 million KRW. In Jung-gu, Sindang-dong Namsan Town and Samsung dropped by 5 million to 20 million KRW.

The jeonse (long-term deposit lease) market continued to shift to monthly rent due to the burden of loan interest and concerns over reverse jeonse. Amid significantly weakened demand, Seoul fell by 0.13%. New towns and Gyeonggi·Incheon each dropped by 0.05%.

In Seoul, jeonse prices declined mainly in large complexes where jeonse listings are slowly being exhausted. By region: ▲Gwanak (-0.34%) ▲Guro (-0.28%) ▲Gangdong (-0.27%) ▲Jung-gu (-0.22%) ▲Gwangjin (-0.20%) ▲Seongbuk (-0.20%) ▲Yangcheon (-0.18%) ▲Yongsan (-0.18%) fell in order. In Gwanak, Bongcheon-dong Gwanak Dream Town, Gwanak Woosung, and Doosan dropped by 5 million to 10 million KRW. In Guro, Sindorim-dong Sindorim Daerim 1st Complex and Guro-dong Jugong 1st Complex fell by 5 million to 10 million KRW. In Gangdong, Godeok-dong Godeok I-Park, Godeok Raemian Hillstate, and Myeongil-dong Samik Green 2nd Complex were adjusted downward by 5 million to 10 million KRW.

Meanwhile, the government decided to lift regulations on Gyeonggi, Incheon, and Sejong from the 14th, excluding Seoul and four adjacent areas: Gwacheon, Seongnam (Bundang·Sujeong), Hanam, and Gwangmyeong. This may open up transactions mainly for some genuine buyers who meet income and other conditions. However, Real Estate R114 forecasts that it will be difficult to escape the market downturn because interest rate hikes, which currently dominate the market, are ongoing, and buyers’ purchasing power has weakened due to regulations such as DSR (Debt Service Ratio).

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