March Seoul Apartment Prices Decline Less... Gangnam 3 Districts Show Upward Trend

Published 15 Apr.2022 14:00(KST)

Apartment buildings in the Seoul area (Photo by Yonhap News)

[Asia Economy Reporter Ryu Tae-min] Last month, the decline in Seoul housing sale prices narrowed compared to the previous month. In particular, the upward trend continues mainly in the Gangnam 3 districts (Gangnam, Seocho, Songpa), buoyed by expectations of eased reconstruction regulations.

According to the nationwide housing price trend announced by the Korea Real Estate Board on the 15th, the comprehensive nationwide housing sale price index rose by 0.02% last month, narrowing the increase compared to the previous month (0.03%). The metropolitan area (-0.03% → -0.04%) saw an expanded decline, while Seoul (-0.04% → -0.01%) experienced a reduced decline. The provinces (0.08% → 0.07%) also saw a slight slowdown in the increase.

In Seoul, Seocho-gu (0.11%) saw an expanded increase as high-priced complexes along the Han River recorded new high-price transactions. Songpa-gu (0.06%) experienced a rise as urgent sale properties were exhausted and asking prices increased, and Gangnam-gu (0.02%) turned to an increase mainly in reconstruction in Apgujeong-dong and mid-to-large sized properties in Gaepo and Yeoksam-dong. Yangcheon-gu (0.00%) remained flat as inquiries increased mainly for reconstruction in Mokdong New Town, where expectations for regulatory easing exist.

Gyeonggi (-0.06%) continued to be affected by inventory accumulation, and Incheon (-0.04%) declined as buyer sentiment weakened mainly in areas affected by new housing supply.

Among provincial metropolitan cities, Gwangju (0.22%) and Busan (0.06%) rose, but Daejeon (-0.12%) fell due to inventory accumulation and decreased transaction volume, and Daegu (-0.43%) declined due to continued inventory accumulation.

The nationwide monthly comprehensive housing jeonse (long-term lease) price index turned to a decline of -0.02% from 0.00% in the previous month. The metropolitan area (-0.07% → -0.08%) saw an expanded decline, Seoul (-0.06% → -0.06%) maintained the decline rate, and the provinces (0.06% → 0.04%) saw a reduced increase.

Seoul (-0.06%) saw a decrease in jeonse demand due to the burden of loan interest rates and accumulated inventory. Incheon (-0.26%) declined in most areas including Yeonsu, Bupyeong, and Namdong-gu. Gyeonggi (-0.06%) continued its downward trend mainly in older buildings in Anyang and Siheung, which are burdened by new housing supply.