Will New Towns Also Breathe... Slowdown in Apartment Price Decline in the Seoul Metropolitan Area

Apartment area viewed from Namsan.
[Photo by Yonhap News]

The decline in apartment sale prices in the Seoul metropolitan area narrowed across the board compared to the previous week. In Seoul, the drop in the 'Gangnam 3 districts (Gangnam, Seocho, Songpa)' was reduced by more than half, with Seocho-gu showing no change. New towns showed the lowest rate of change since October last year.

According to Real Estate R114 on the 19th, apartment sale prices in Seoul fell by 0.05% this week, a smaller decline than last week (-0.07%). Reconstruction apartments dropped by 0.01%, and general apartments fell by 0.06%. New towns and Gyeonggi/Incheon fell by 0.02% and 0.04%, respectively.

In Seoul, as the spring moving season approaches, inquiries for purchases increased in areas with good school districts and proximity to workplaces, but transactions are mainly occurring in low-priced older buildings. By region, the declines were as follows: ▲Dobong -0.20% ▲Gangseo -0.19% ▲Jungnang -0.16% ▲Gwanak -0.13% ▲Gwangjin -0.12% ▲Gangbuk -0.11% ▲Nowon -0.11% ▲Mapo -0.11%.

In new towns, the number of areas with stable prices increased from 4 to 6 compared to the previous week, and the decline slowed in both 1st and 2nd generation new towns. By region, the declines were: ▲Pyeongchon -0.12% ▲Jungdong -0.10% ▲Ilsan -0.06% ▲Gwanggyo -0.02% ▲Dongtan -0.01%.

In Gyeonggi/Incheon, the declines were: ▲Bucheon -0.15% ▲Gimpo -0.13% ▲Uiwang -0.13% ▲Suwon -0.09% ▲Anyang -0.05% ▲Incheon -0.04% ▲Namyangju -0.04% ▲Yongin -0.04%.

The jeonse market is experiencing a severe inventory backlog, with transactions occurring mainly in low-priced listings. Seoul apartment jeonse prices fell by 0.12%, marking a two-week consecutive increase in the rate of decline. New towns fell by 0.06%, and Gyeonggi/Incheon by 0.04%.

In Seoul, jeonse supply continues to accumulate, with occasional transactions of low-priced listings. By region, the declines were: ▲Gangseo -0.37% ▲Dobong -0.27% ▲Gangnam -0.20% ▲Gangbuk -0.20% ▲Jungnang -0.20% ▲Gwanak -0.19% ▲Gwangjin -0.18% ▲Nowon -0.18%.

In new towns, the declines were: ▲Pyeongchon -0.28% ▲Ilsan -0.18% ▲Jungdong -0.11% ▲Sanbon -0.08% ▲Gwanggyo -0.01%.

In Gyeonggi/Incheon, the declines were: ▲Bucheon -0.14% ▲Gwangmyeong -0.10% ▲Incheon -0.07% ▲Guri -0.07% ▲Anyang -0.07% ▲Uiwang -0.07% ▲Hwaseong -0.05%.

Baek Saerom, lead researcher at Real Estate R114, explained, "In a situation where price fluctuations repeat, it is better not to place too much significance on temporary slowing of the decline, but rather to interpret it as the process of absorbing listings in some areas and specific complexes that had large price drops."

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