Seoul Apartment Prices Rise for 24 Consecutive Weeks... Jeonse Prices Increase at a Faster Rate

by Roh Kyungjo

Published 02 Nov.2023 14:14(KST)

Seoul apartment sale prices have risen for 24 consecutive weeks amid a wait-and-see stance, while jeonse prices have increased more sharply due to continued rental demand.

View of downtown apartments from Namsan, Seoul / Photo by Yonhap News

According to the 'Weekly Apartment Price Trends' released by the Korea Real Estate Board on the 2nd, nationwide apartment prices rose by 0.04% in the fifth week of October (as of the 30th), a smaller increase compared to the previous week (0.05%). The weekly growth rate, which had been fluctuating, slowed down for two consecutive weeks.

The apartment price increase rate in Seoul remained at 0.07%, the same as the previous week, with Yongsan-gu (0.19%), Dongdaemun-gu (0.18%), Jung-gu (0.14%), and Gangdong-gu (0.13%) showing the largest gains by district. Gangbuk-gu, which was the only district to turn negative last week (-0.01% → 0.01%), returned to an increase.

The Real Estate Board stated, "Rising transactions are occurring mainly in preferred complexes with good living conditions, but overall, a wait-and-see stance prevails due to the gap between the desired prices of sellers and buyers."

Apartment prices in Gyeonggi Province also saw a reduced increase from 0.09% to 0.08%. While Seongnam-si Bundang-gu (0.12% → 0.18%), Suwon-si Yeongtong-gu (0.20% → 0.25%), and Yongin-si Cheoin-gu (0.06% → 0.13%) rose, Gwacheon-si (0.08% → 0.06%) and Gwangmyeong-si (0.09% → 0.04%) declined.

Incheon showed the same increase as the previous week (0.02%). Michuhol-gu (-0.11%) continued its wait-and-see trend mainly in older buildings, deepening its decline,

while Dong-gu (-0.04%) fell mainly in Songnim and Songhyeon-dong. Seo-gu (0.08%) and Yeonsu-gu (0.06%) rose.

Apartment prices in provincial areas rose by 0.01%. Notably, Sejong-si, which had been rising sharply, fell for the third consecutive week (-0.05% → -0.06%). Busan (-0.04%), Jeollanam-do (-0.02%), and Jeju (-0.05%) also continued their downward trends.

Nationwide jeonse prices (0.12%) continued to rise, though the increase slowed compared to the previous week (0.13%). Seoul, which had risen 0.18% for two consecutive weeks, increased its rise to 0.19% this week. Among districts, Seongdong-gu (0.53%) showed the largest increase.

The Real Estate Board explained, "Due to concerns over interest rate hikes and uncertainties in the sales market, real demand for jeonse continues, with rental demand centered on areas with good living conditions such as those near subway stations and large complexes."