Nowon 0.98% Decline... Apartment Prices Hit Another Record Largest Drop

A red light is on at a traffic signal near an apartment in downtown Seoul. (Photo by Asia Economy DB)

[Asia Economy Reporter Ryu Tae-min] Seoul apartment sale and jeonse prices have once again recorded the largest drop in history. As concerns grow that the housing market downturn will continue, the wait-and-see sentiment is becoming even stronger.

According to the 'Weekly Apartment Price Trend for the 2nd week of December' released by the Korea Real Estate Board on the 15th, Seoul apartment prices fell 0.65% compared to last week (-0.59%). This marks the 29th consecutive week of decline and breaks the record for the largest drop for six consecutive weeks since the Real Estate Board began price surveys in May 2012.

By region, the decline was most notable in the 'Nodogang' (Nowon, Dobong, Gangbuk districts) area. Apartment prices in Nowon-gu fell 0.98%, the largest drop in Seoul, followed by Dobong-gu at 0.93% and Gangbuk-gu at 0.77%.

In the Gangnam area, the decline widened in Gangnam-gu (-0.39%), Seocho-gu (-0.26%), and Songpa-gu (-0.67%). Gangdong-gu also fell 0.60%, bringing the entire southeastern region down by 0.48%.

The Real Estate Board analyzed, “Due to concerns that the housing market downturn will continue for the time being, buyers' wait-and-see sentiment is lengthening,” adding, “In fact, it is difficult to complete sales transactions, leading to intensified downward price adjustments of listings and an expanding scale of decline.”

The metropolitan area (-0.79%) and provinces (-0.50%), which had hoped for a turnaround due to deregulation benefits, are seeing continued expansion in the scale of decline. Apartment prices in Gyeonggi-do fell 0.81% this week, and Incheon dropped 1.04%, both showing larger declines than last week.

Similarly, Sejong City, which was deregulated, saw its decline widen significantly from 1.02% last week to 1.22% this week, continuing the largest drop in history.

The jeonse market is also continuing its slump.

Jeonse prices nationwide (-0.83%), in the metropolitan area (-1.12%), and in Seoul (-1.08%) are all experiencing the largest consecutive declines in history. Provinces fell 0.55%, the five major metropolitan cities recorded a 0.73% drop, and Sejong City saw a 1.25% decline.

In the metropolitan area, Incheon (-1.26%) and Gyeonggi (-1.12%) both exceeded a 1.0% drop, continuing the downward trend. By city and province, Daegu (-1.14%), Ulsan (-0.69%), Daejeon (-0.67%), Chungbuk (-0.62%), and Busan (-0.58%) also showed declines.

The Real Estate Board stated, “Due to the burden of loan interest, the proportion of monthly rent transactions continues to increase, leading to a deepening backlog of jeonse listings,” adding, “Along with the downward adjustment of sale prices, downward pressure on jeonse prices is increasing, and the decline in transactions continues, with the scale of decline expanding compared to last week.”

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