Seoul Apartment Sale Prices End in Weakness for the First Time in 9 Years

Real Estate R114, Housing Price Trends in the Seoul Metropolitan Area

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hye-min] The Seoul apartment sale prices ended on a weak note until the very end. After declining weekly for six consecutive months since July this year, the market has turned bearish on an annual basis for the first time in nine years since 2013. Amid concerns of a hard landing due to the construction market slump, attention is focused on whether the government's comprehensive deregulation can guide a soft landing next year.

According to Real Estate R114 on the 31st, the Seoul apartment sale prices in the last week of December fell by 0.07% compared to the previous week. General apartments dropped by 0.07%, and redevelopment apartments decreased by 0.06%.

By region, Seoul showed weakness regardless of high-priced or mid-to-low-priced areas. ▲Gangdong (-0.23%) ▲Seongbuk (-0.15%) ▲Dongjak (-0.14%) ▲Dongdaemun (-0.12%) ▲Mapo (-0.11%) ▲Gwanak (-0.10%) ▲Nowon (-0.10%) ▲Gangnam (-0.08%) ▲Yangcheon (-0.08%) all declined.

New towns fell by 0.06% compared to the previous week. By area, ▲Pyeongchon (-0.17%) ▲Ilsan (-0.10%) ▲Bundang (-0.08%) ▲Dongtan (-0.06%) ▲Gimpo Hangang (-0.02%) declined.

Gyeonggi and Incheon also dropped by 0.06% compared to the previous week. ▲Seongnam (-0.17%) ▲Suwon (-0.16%) ▲Yongin (-0.16%) ▲Gimpo (-0.14%) ▲Hwaseong (-0.10%) ▲Gunpo (-0.09%) ▲Bucheon (-0.08%) all decreased.

The jeonse market is facing difficulties in finding tenants due to the winter cold wave and year-end off-season. In Seoul, the decline was greater compared to sales prices due to seasonal off-season effects such as the winter cold wave. It fell by 0.16% compared to the previous week. By region, ▲Guro (-0.32%) ▲Gwanak (-0.29%) ▲Songpa (-0.28%) ▲Dongdaemun (-0.26%) ▲Gangnam (-0.25%) ▲Mapo (-0.25%) ▲Seongbuk (-0.24%) all declined.

New towns fell by 0.12%, and Gyeonggi and Incheon dropped by 0.09%.

Yoon Ji-hae, chief researcher at Real Estate R114, said, "With historically low housing transaction volumes, both sale and jeonse prices are adjusting deeply, raising concerns about a hard landing. The sharp drop in transaction volume not only shocks related industries such as brokerage offices leading transactions, moving companies, interior firms, construction companies, and developers, but also increases the possibility of reduced local government finances based on acquisition tax."

Chief researcher Yoon added, "The government has announced comprehensive deregulation measures covering finance, taxes, subscription, and other systems to induce a soft landing. It is worth watching whether the urgent sale properties accumulated in the current market can be partially resolved next year."

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