Seoul Apartment Prices Stop Declining After One Year... Jeonse Prices Also Turn 'Stable'

Seoul apartment sale and jeonse prices have stopped declining after about a year. Sale prices turned to stable (0.00%) for the first time in 48 weeks since August 5 last year, and jeonse prices turned to stable (0.00%) for the first time in 51 weeks since July 15 last year.

[Image source=Yonhap News]

According to Real Estate R114 on the 9th, Seoul apartment sale prices ended a long-term decline of about a year and showed stability (0.00%). Both redevelopment and general apartments also stopped declining. On the other hand, new towns and Gyeonggi·Incheon areas slightly fell by -0.01% each.

In Seoul, most of the 25 districts showed stability, with only eight areas recording weakness. By region, the declines were as follows: ▲Dobong (-0.02%) ▲Seongbuk (-0.02%) ▲Yangcheon (-0.02%) ▲Yeongdeungpo (-0.02%) ▲Nowon (-0.01%) ▲Mapo (-0.01%) ▲Eunpyeong (-0.01%) ▲Jungnang (-0.01%).

Apartment sale prices in new towns fell by 0.01%. By region, ▲Ilsan (-0.09%) ▲Pyeongchon (-0.03%) ▲Sanbon (-0.02%) declined, while other new towns remained stable (0.00%).

Apartment sale prices in Gyeonggi·Incheon fell by 0.01%. By region, ▲Goyang (-0.03%) ▲Uijeongbu (-0.03%) ▲Incheon (-0.02%) ▲Gwangmyeong (-0.01%) ▲Namyangju (-0.01%) ▲Bucheon (-0.01%) ▲Suwon (-0.01%) ▲Pyeongtaek (-0.01%) declined. On the other hand, Yongin, which has attracted market attention due to the semiconductor cluster development, rose by 0.02%.

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

Although concerns about reverse jeonse remain in the jeonse market, the government’s announcement of loan regulation easing measures focused on landlords has somewhat eased the atmosphere. Seoul turned stable, while new towns and Gyeonggi·Incheon fell by 0.01%.

Seoul jeonse prices fell in ▲Guro (-0.02%) ▲Dobong (-0.02%) ▲Yeongdeungpo (-0.02%) ▲Seongbuk (-0.01%) ▲Eunpyeong (-0.01%), while ▲Mapo (0.04%) ▲Dongjak (0.03%) rose.

In new towns, ▲Pyeongchon (-0.08%) ▲Ilsan (-0.04%) ▲Sanbon (-0.02%) declined. In Gyeonggi·Incheon, ▲Goyang (-0.09%) ▲Icheon (-0.07%) ▲Uijeongbu (-0.04%) ▲Incheon (-0.02%) ▲Suwon (-0.02%) fell, while Yongin rose by 0.02%.

Meanwhile, on the 4th, the government announced preemptive measures against reverse jeonse and jeonse fraud, stating that from the end of this month, for one year only, DSR (Debt Service Ratio) will be excluded and DTI (Debt-to-Income ratio) of 60% will be applied only to jeonse deposit return loans.

A Real Estate R114 official said, "When the measures are actually implemented in the field, landlords with a certain level of annual income will see liquidity constraints significantly eased, greatly expanding their ability to repay jeonse deposits," adding, "As the market’s most concerning risk factors are likely to be largely resolved, the stability of the lease market is expected to have a significant impact on the smooth landing of the sale market and improvement of market sentiment in the future."

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