Seoul Apartment Prices Decline Narrowed for 4 Consecutive Weeks... "Cautious Sentiment Remains"

[Asia Economy Reporter Noh Kyung-jo] The decline in apartment prices in Seoul has narrowed for the fourth consecutive week due to the government's easing of real estate regulations. The drop in jeonse prices also slowed down again.

According to the weekly apartment price trend announced by the Korea Real Estate Board on the 26th, Seoul apartment prices in the fourth week of January (as of the 23rd) fell by 0.31%, reducing the decline by 0.04 percentage points compared to the previous week (-0.35%). The downward trend continued for the 35th consecutive week.

Apartment complexes in Gangbuk area including Seongbuk-gu, Seoul / Photo by Yonhap News

The Real Estate Board stated, "Although the price decline has somewhat slowed, the gap between the desired purchase price remains wide, so the wait-and-see stance continues," adding, "The decrease in transaction activity is also influenced by the Lunar New Year holiday."

Among the 25 autonomous districts in Seoul, Guro-gu (-0.50%) recorded the same decline as the previous week, while six districts including Seongdong-gu (-0.18%→-0.31%), Gangseo-gu (-0.65%→-0.66%), Geumcheon-gu (-0.54%→-0.55%), Gwanak-gu (-0.37%→-0.45%), Songpa-gu (-0.25%→-0.26%), and Gangdong-gu (-0.44%→-0.47%) saw an increased rate of decline compared to the previous week. All other districts experienced a reduced decline.

In Gyeonggi (-0.59%) and Incheon (-0.44%), the rate of decline also slowed, and some purchase inquiries increased. However, the Real Estate Board explained that these have not led to actual transactions. In Hwaseong-si, Gyeonggi (-1.00%), prices fell mainly in Dongtan New Town and Byeongjeom-dong, while in Jangan-gu, Suwon-si (-0.92%), prices dropped mainly in major complexes affected by urgent sales in Cheoncheon and Jeongja-dong.

In Yeonsu-gu, Incheon (-0.66%), apartment prices fell mainly in Dongchun, Ongnyeon, and Songdo-dong. Seo-gu (-0.35%) continued to see a decline mainly around Majon and Dangha-dong near Geomdan New Town and in Sin-hyeon and Cheongna-dong, where new supply is influencing the market. However, the rate of decline narrowed.

The five major metropolitan cities in the provinces fell by 0.43%, a decrease in the rate of decline compared to the previous week (-0.49%), but the atmosphere varied by region. Busan (-0.58%→-0.49%) and Daegu (-0.61%→-0.47%) reduced their decline by around 1 percentage point, while Gwangju (-0.29%) and Daejeon (-0.44%) remained at similar levels as the previous week. Ulsan (-0.34%→-0.35%) saw an increased rate of decline. Among nationwide cities and provinces, Sejong recorded the largest decline for eight consecutive weeks at 1.00% due to an accumulation of listings.

National apartment jeonse prices fell by 0.75%, narrowing the decline compared to the previous week (-0.84%). Among these, Seoul (-1.01%), Gyeonggi (-1.08%), and Sejong (-1.05%) showed a decline rate in the 1% range. The Real Estate Board stated, "In Seoul, there are some inquiries about relocation due to school district demand, but under the high-interest rate environment, expectations of further price declines are high, maintaining a tenant-favorable market." Jeonse prices in the five major metropolitan cities in the provinces fell by 0.64%.

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