Effect of 1·3 Measures... Seoul Apartment Price Decline Narrows for 5 Consecutive Weeks

Korea Real Estate Board, Seoul Apartment Prices 0.21→0.16%
Songpa-gu Apartment Prices Decline Again
Seoul Apartment Jeonse Prices Also Show Slower Decline

The decline in Seoul apartment prices narrowed for the fifth consecutive week as quick-sale properties were exhausted due to the effects of government deregulation and reductions in market loan interest rates. However, the downward trend continued as no additional upward transactions occurred due to the gap between sellers' and buyers' desired prices. Apartment prices in Songpa-gu, which had reversed to an increase last week, returned to a downward trend.

[Image source=Yonhap News]

On the 16th, the Korea Real Estate Board surveyed weekly apartment price trends nationwide as of the 13th and found that Seoul apartment prices fell by 0.16%, narrowing the decline for the fifth consecutive week compared to the previous week (-0.21%).

An official from the Real Estate Board explained, "The government's deregulation policies and reductions in market loan interest rates have led to the exhaustion of quick-sale properties, reducing the rate of decline. However, the gap between sellers' and buyers' desired transaction prices remains wide, preventing additional upward transactions and sustaining the downward trend."

Apartment prices in Songpa-gu, which had turned upward last week, fell by 0.01%, returning to a downward trend. The Real Estate Board analyzed that it is still premature to interpret last week's price increase in Songpa-gu as a 'major upward trend,' noting that most actual transactions in Seoul apartments continue to move within a narrow range, resulting in a 'bumpy market.'

Apartment prices in Seocho-gu fell by 0.01%, the same as last week, and in Gangnam-gu, the decline narrowed from -0.10% last week to -0.07% this week.

The rate of decline also decreased in outer areas. The downtown area, including Jongno and Yongsan, saw the decline narrow from -0.24% to -0.15%, and the declines in Nowon, Dobong, and Gangbuk (No-Do-Gang) also slightly decreased. Dobong-gu's decline narrowed from -0.38% to -0.29%, Gangbuk-gu from -0.31% to -0.26%, and Nowon-gu from -0.18% to -0.10%.

Apartment prices in Gyeonggi Province also fell by 0.50% this week, narrowing the decline compared to last week (-0.60%). In Incheon, where both sale and jeonse prices are falling due to an increase in housing supply, the decline narrowed from -0.36% to -0.28%. Nationwide apartment prices fell by 0.26%, reducing the decline compared to last week (-0.34%).

Seoul apartment jeonse prices fell by 0.50% this week, narrowing the decline from -0.58% last week. The weakening appears to have slowed as jeonse transactions increased ahead of the moving season. Nationwide apartment jeonse prices also saw a reduced decline from -0.46% to -0.41%.

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