The Whole Country Cries Out... Housing Prices Fall by the Largest Margin in Over 14 Years

Korea Real Estate Board 'October Nationwide Housing Price Trends'
Seoul Apartment Prices Down 1.24%...Steep Decline
Nationwide and Capital Area Show Largest Drop Since Statistics Compilation

Photo by Asia Economy

Amid concerns over interest rate hikes and economic recession, the real estate market has frozen solid, with nationwide housing prices (apartments, row houses, detached houses) in October falling to their lowest levels since the global financial crisis. When considering apartments alone, both nationwide and the metropolitan area experienced the largest decline on record.

According to the "October Nationwide Housing Price Trend Survey Results" released by the Korea Real Estate Board on the 15th, the comprehensive housing sale price in Seoul dropped by 0.81% compared to the previous month. This is the largest decline in 13 years and 10 months since December 2008 (-1.39%) during the global financial crisis.

Nationwide (-0.77%) and metropolitan area (-1.02%) comprehensive housing sale prices also saw larger drops compared to the previous month. This too is the steepest decline since December 2008 (-0.78%, -1.17%).

Among them, Gyeonggi-do fell by 1.10% and Incheon by 1.29% compared to the previous month, with monthly declines exceeding 1%.

The Real Estate Board explained, "Due to the rising interest rate trend and concerns over price declines, buyer sentiment is shrinking and transaction prices are being adjusted downward, leading to an imbalance in supply and demand between buyers and sellers, causing an accumulation of listings."

The apartment market is experiencing even steeper declines.

Seoul apartment prices fell by 1.24% this month, marking the largest drop since December 2008 (-1.73%).

Nationwide and metropolitan area apartment prices dropped by 1.20% and 1.52% respectively last month. This is the largest monthly decline since the Real Estate Board began price surveys in December 2003.

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

Last month, the comprehensive housing jeonse price in Seoul fell by 0.96%, nearly double the previous month's decline (-0.45%).

Incheon (-1.36%) and Gyeonggi (-1.39%) also saw larger declines compared to the previous month.

Seoul apartment jeonse prices dropped by 1.42%, more than twice the previous month's decline (-0.67%).

The monthly decline rate of Seoul apartment jeonse prices last month was the largest in 3 years and 9 months since January 2009 (-1.74%).

The Real Estate Board analyzed, "Due to the impact of interest rate hikes, the burden of jeonse loan interest has increased, leading to continued conversions to half-jeonse and monthly rent contracts. In Seoul, price declines are occurring mainly in key complexes, and in Gyeonggi and Incheon, the decline is expanding due to inventory accumulation and new housing supply."

Monthly rent increases are slowing down. Last month, the nationwide comprehensive housing monthly rent price rose by 0.05%, and Seoul by 0.09%, both smaller increases compared to the previous month (each 0.10%).

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