Despite the Removal of Regulatory Zones in the Metropolitan Area... Price Change Signs Remain 'Minimal'

Apartment complex in Seoul area (Photo by Yonhap News)

[Asia Economy Reporter Ryu Tae-min] Although the entire metropolitan area except for Seoul and four areas in Gyeonggi-do has been changed to non-regulated areas, meaningful signs of price changes have so far been minimal. It is analyzed that it will take about 2 to 3 weeks for the policy effects to appear.

According to Real Estate R114 on the 19th, the apartment price change rate in Seoul this week recorded -0.07%, continuing the downward trend. Reconstruction prices fell by 0.17%, and general apartments dropped by 0.05%. New towns fell by 0.06%, and Gyeonggi and Incheon dropped by 0.03%.

In Seoul, 10 out of 25 districts recorded no change. By region, ▲Gwangjin (-0.26%) ▲Gwanak (-0.25%) ▲Songpa (-0.21%) ▲Mapo (-0.16%) ▲Guro (-0.13%) ▲Gangnam (-0.08%) ▲Gangbuk (-0.06%) ▲Yangcheon (-0.06%) declined.

In Gwangjin, Raemian Gui Park Suites in Guui-dong and Gwangjang Hyundai Complex 3 in Gwangjang-dong fell by 25 million to 50 million KRW. In Gwanak, Bongcheon-dong Seonghyeon Dong-A and Doosan fell by 5 million to 50 million KRW. In Songpa, Jamsil Jugong Complex 5 in Jamsil-dong and Jangmi in Sincheon-dong dropped by 25 million to 50 million KRW. In Mapo, Gongdeok Samsung in Gongdeok-dong and Seongsan Siyeong in Seongsan-dong fell by 5 million to 35 million KRW.

The jeonse (long-term deposit lease) market continued to convert to monthly rent due to the burden of loan interest and concerns about reverse jeonse. Amid significantly weakened demand, Seoul fell by 0.10%. New towns and Gyeonggi·Incheon dropped by 0.13% and 0.06%, respectively.

In Seoul, jeonse prices mainly fell in large complexes where jeonse listings were slowly exhausted. By region, the decline was in the order of ▲Guro (-0.46%) ▲Gwanak (-0.31%) ▲Gwangjin (-0.31%) ▲Gangseo (-0.20%) ▲Mapo (-0.17%) ▲Gangdong (-0.13%) ▲Gangnam (-0.12%) ▲Songpa (-0.11%).

In Guro, Gaebong I-Park in Gaebong-dong, Sindorim Daerim Complex 2 in Sindorim-dong, and Hyundai Yeonyein in Guro-dong fell by 5 million to 30 million KRW. In Gwanak, Bongcheon-dong Seonghyeon Dong-A and Doosan fell by 5 million to 25 million KRW. In Gwangjin, Raemian Gui Park Suites in Guui-dong and Gwangjang Hyundai Complex 3 in Gwangjang-dong dropped by 25 million to 50 million KRW.

Meanwhile, the government lifted the regulation on Gyeonggi, Incheon, and Sejong, excluding Seoul and four adjacent areas?Gwacheon, Seongnam (Bundang and Sujeong), Hanam, and Gwangmyeong?from the 14th. As a result, transactions may open up mainly for some real demand buyers who meet income and other conditions, but since 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), Real Estate R114 expects it will not be easy for the market to escape the downturn.

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