Seoul Reconstruction Apartments See Smallest Decline in 9 Months... Nearing Stable Range

The sale prices of reconstruction apartments in the Seoul metropolitan area are on the verge of entering a stable range after about a year. This is interpreted as reflecting a recovery trend following the depletion of urgent sale listings and expectations that reconstruction projects will accelerate due to the easing of safety inspection standards.

[Image provided by Real Estate R114]

According to Real Estate R114 on the 22nd, the sale price of reconstruction apartments in the Seoul metropolitan area in May this year fell by 0.04% compared to the previous month. This was the smallest decline in nine months since August last year (-0.04%).

In May, the adjustment trend of commercial bank loan interest rates continued, and after the depletion of urgent sale listings, buying sentiment somewhat improved, leading to a slowdown in the rate of price decline.

In particular, Seoul, where downward pressure was higher than the average sale price fluctuation rate in the metropolitan area, saw an increase in stable areas after mid-May, and some complexes in Songpa-gu and Gangdong-gu experienced price increases.

The average sale price per 3.3㎡ of reconstruction apartments in Seoul was 60.51 million KRW, which is 4.64 million KRW lower compared to the price just before the decline period. During the same period, Gangdong-gu fell by 17.44 million KRW, Songpa-gu by 8.33 million KRW, and Nowon-gu and Geumcheon-gu each dropped by 4.53 million KRW. The large price gap in Gangdong-gu compared to other areas appears to be due to whether the Dunchon Jugong reconstruction (Olympic Park Foreon) complex was included in the comparison period.

Yongsan-gu was the only district to slightly increase from 56.80 million KRW to 56.91 million KRW compared to a year ago. It is analyzed that price defense was possible even during the decline period, supported by positive factors such as the presidential office relocation, Yongsan international business district development, and Yongsan Park creation.

A Real Estate R114 official said, "The recent slowdown in the decline of reconstruction apartment sale prices indicates an improved investment environment due to regulatory easing and reduced interest rate volatility," but added, "Since transaction volumes still remain below average levels and investment conditions are variable due to economic slowdown, construction cost increases, and delays in related legislation, hasty purchase decisions should be avoided."

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