Seoul Apartment Price Decline Slightly Narrows... Recovery Speed Varies by Autonomous District

Decline Narrowed in Northwest and Southeast Regions
Southwest Region Shows Steeper Downward Trend

As the decline in Seoul apartment prices has somewhat slowed, the pace of price and transaction volume recovery varies by autonomous district. While the northwestern and southeastern areas are seeing increased transactions and a narrowing of price declines, the southwestern region, including Geumcheon, Guro, and Gwanak districts, where mid-to-low-priced apartments are concentrated, continues to experience a deepening downward trend following a steep rise in housing prices.

A view of the Yeouido area from the 63 Building in Yeongdeungpo-gu, Seoul. Apartment complexes undergoing reconstruction and high-rise offices are located side by side.
[Photo by Tae-min Ryu]

According to Real Estate R114 on the 30th, Seoul apartment prices fell by 0.04% this week, slightly less than last week's decline of 0.05%. Reconstruction apartments dropped by 0.03%, and general apartments decreased by 0.04%. New towns and Gyeonggi-Incheon areas each fell by 0.03%.

In Seoul, the weakness in apartments in the southwestern region continued for the second consecutive week. By area, the declines were as follows: ▲Gwanak (-0.25%) ▲Guro (-0.18%) ▲Geumcheon (-0.15%) ▲Dobong (-0.15%) ▲Gangdong (-0.09%) ▲Dongjak (-0.08%) ▲Mapo (-0.06%).

In new towns, the following areas declined: ▲Pyeongchon (-0.09%) ▲Ilsan (-0.08%) ▲Gimpo Hangang (-0.08%) ▲Jungdong (-0.06%) ▲Sanbon (-0.02%) ▲Bundang (-0.01%), while the other second-phase new towns remained stable.

In Gyeonggi-Incheon, the declines were in the order of ▲Uiwang (-0.15%) ▲Gunpo (-0.13%) ▲Yongin (-0.07%) ▲Paju (-0.05%) ▲Anyang (-0.04%) ▲Osan (-0.04%) ▲Goyang (-0.03%) ▲Bucheon (-0.03%) ▲Seongnam (-0.03%) ▲Suwon (-0.03%).

The jeonse (long-term lease) market saw transactions mainly in low-priced urgent sales, with Seoul falling by 0.06%. New towns declined by 0.04%, and Gyeonggi-Incheon by 0.03%.

The number of stable areas in Seoul increased significantly to 10. Gangbuk, Seodaemun, Eunpyeong, and Jongno districts continued to show stability this week as well. By area, the declines were: ▲Guro (-0.26%) ▲Geumcheon (-0.19%) ▲Dongjak (-0.17%) ▲Gangdong (-0.14%) ▲Jungnang (-0.10%) ▲Seongbuk (-0.09%) ▲Mapo (-0.08%) ▲Gangnam (-0.07%) ▲Yeongdeungpo (-0.07%).

In new towns, the declines were in ▲Ilsan (-0.19%) ▲Jungdong (-0.16%) ▲Pyeongchon (-0.09%) ▲Dongtan (-0.02%). In Gyeonggi-Incheon, the declines were in the order of ▲Uiwang (-0.23%) ▲Gunpo (-0.15%) ▲Paju (-0.10%) ▲Goyang (-0.09%) ▲Yongin (-0.08%) ▲Guri (-0.04%) ▲Osan (-0.04%).

Baek Saerom, lead researcher at Real Estate R114, stated, “As issues surrounding jeonse deposits begin to emerge rapidly, the demand for jeonse in row houses and multi-family homes is decreasing, while in apartments, the decline in jeonse prices is increasing the proportion of new contracts. For apartments, compared to row houses and multi-family homes, prices are more clearly verifiable and the jeonse rate is lower, leading to a perception of relative safety. However, in a housing market that has not rebounded, it will be difficult for apartment jeonse to avoid deposit non-return incidents.”

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