Seoul Apartment Sale Prices 'Stable'... Gap Between Gangnam and Non-Gangnam Widens

Seoul apartment sale prices have been hovering in a stable range for eight consecutive weeks. As the price gap between the Gangnam area and non-Gangnam areas widens, a mixed trend by region is expected to continue.

[Image source=Yonhap News]

According to Real Estate R114 on the 2nd, Seoul apartment sale prices fell by 0.02%, slightly widening the decline from the previous week (-0.01%). Seoul apartment sale prices have been hovering between -0.01% and -0.02% for eight weeks since the first week of May (-0.03%). Reconstruction apartments, which had maintained stability (0.00%) since the third week of May (19th), recorded a decline of -0.01% after seven weeks, while general apartments fell by 0.02%. New towns and Gyeonggi·Incheon areas fell by 0.02% and 0.01%, respectively.

New town apartment sale prices fell by 0.02%. By region, the declines were in the order of ▲Ilsan (-0.09%) ▲Sanbon (-0.03%) ▲Pangyo (-0.03%) ▲Bundang (-0.02%), with both first and second phase new towns seeing an expanded decline compared to the previous week.

Gyeonggi·Incheon apartment sale prices fell by 0.01%. By region, the declines were in the order of ▲Uiwang (-0.07%) ▲Gimpo (-0.05%) ▲Gwangmyeong (-0.03%) ▲Bucheon (-0.03%) ▲Anyang (-0.03%) ▲Paju (-0.03%) ▲Siheung (-0.02%) ▲Yangju (-0.02%).

Weekly Price Change Rate of Seoul Sale and Jeonse.
[Photo by Real Estate R114]

The jeonse (long-term lease) market is in a seasonal low period, with somewhat sluggish transaction activity, while the entire metropolitan area continued the same rate of decline as last week. Seoul fell by 0.01%, new towns by 0.02%, and Gyeonggi·Incheon by 0.01%.

In Seoul, the largest jeonse price declines were centered on mid- to low-priced apartments in outer areas. By region, declines were seen in ▲Gwanak (-0.07%) ▲Gangbuk (-0.05%) ▲Guro (-0.05%) ▲Nowon (-0.04%) ▲Dobong (-0.04%) ▲Dongdaemun (-0.04%) ▲Seongbuk (-0.04%) ▲Yangcheon (-0.04%) ▲Jungnang (-0.04%).

Jeonse prices in new towns fell in the order of ▲Bundang (-0.05%) ▲Pangyo (-0.03%) ▲Ilsan (-0.01%) ▲Pyeongchon (-0.01%). In Gyeonggi·Incheon, declines were seen in ▲Gimpo (-0.06%) ▲Yangju (-0.05%) ▲Siheung (-0.04%) ▲Anyang (-0.04%) ▲Incheon (-0.03%) ▲Goyang (-0.03%) ▲Suwon (-0.02%) ▲Gunpo (-0.01%) ▲Namyangju (-0.01%).

A representative from Real Estate R114 said, “With loan easing, household debt is increasing, and there is a risk that the burden may be passed on to new tenants. However, if reverse jeonse prolongs, it could become a factor for a real estate hard landing. Therefore, by opening the way for additional loans, it is expected to help prevent situations where deposits are not returned and to calm confusion in the rental market.”

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