Seoul Apartment Transactions Stir... Decline in Reconstruction Sale Prices Also Narrows

Real Estate R114, Weekly Real Estate Trends in the Seoul Metropolitan Area

[Asia Economy Reporter Kim Hyemin] Although Seoul apartment sale prices still record negative growth rates, transaction volumes are gradually picking up. With growing expectations for revitalizing redevelopment projects, the decline in sale prices of reconstruction complexes has slowed for three consecutive weeks.

According to Real Estate R114 on the 12th, Seoul apartment sale prices in the second week of this month fell by 0.06% compared to the previous week, reducing the decline by 0.03 percentage points. Reconstruction complexes dropped by 0.02% compared to the previous week, marking a three-week consecutive slowdown in the decline. General apartments fell by 0.07%.

In Seoul, as regulatory easing policies continue, inquiries for purchases are increasing mainly for urgent sale properties with significantly lowered prices. Following the 1st and 3rd measures, and with the government actively expressing its intention for a smooth market landing through special Bogeumjari loans for homes under 900 million KRW, transaction volumes are gradually rising. However, the price gap between buyers and sellers remains wide, causing considerable difficulties before actual contracts are finalized.

By region, sale prices fell in the following order: ▲Gwanak (-0.37%) ▲Gangseo (-0.25%) ▲Dongjak (-0.16%) ▲Yongsan (-0.11%) ▲Jung-gu (-0.10%) ▲Gangnam (-0.08%) ▲Guro (-0.08%) ▲Dobong (-0.08%).

New towns saw a 0.06% decline compared to the previous week as the special law for first-generation new towns has not been fully reflected in the market. By region, weakness prevailed in ▲Pyeongchon (-0.14%) ▲Sanbon (-0.13%) ▲Dongtan (-0.07%) ▲Pangyo (-0.07%) ▲Bundang (-0.06%) ▲Ilsan (-0.06%).

Gyeonggi and Incheon fell by 0.05% compared to the previous week. By region, the decline was in the order of ▲Suwon (-0.15%) ▲Yongin (-0.13%) ▲Goyang (-0.09%) ▲Seongnam (-0.08%) ▲Gimpo (-0.04%) ▲Namyangju (-0.04%) ▲Uijeongbu (-0.04%) ▲Osan (-0.03%).

The jeonse market also saw a slowdown in the rate of decline compared to the previous week, but in Seoul, large-scale apartment move-ins in Gangnam, Dongjak, and other areas led to a 0.15% drop. In Seoul, prices that surged sharply in a short period are steadily retreating as jeonse contracts approach their expiration. The decline was in the order of ▲Gwanak (-0.58%) ▲Gangseo (-0.53%) ▲Dongjak (-0.42%) ▲Yongsan (-0.39%) ▲Jongno (-0.38%) ▲Yangcheon (-0.25%) ▲Mapo (-0.24%).

New towns and Gyeonggi·Incheon showed the same decline rate of -0.07%.

Yoon Jihae, Chief Researcher at Real Estate R114, said, "With the announcement of the 'Special Act on the Maintenance and Support of Aging Planned Cities,' known as the first-generation new town special law, redevelopment project sites are expected to view this as a positive issue for price defense." She added, "Not only first-generation new towns but also land development districts such as Gaepo, Godeok, Sanggye, and Mokdong in Seoul are included."

Chief Researcher Yoon added, "However, since the housing market is currently sluggish and demand movement is limited, and there is a possibility of changes in detailed content during the National Assembly discussions, it will take quite some time before actual district designation or pilot district designation. Considering the uncertainty of project promotion, it is difficult to expect immediate price increases in beneficiary areas."

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