No Change in Seoul Apartment Prices Since Mid-January... Buying Sentiment Recovers

by Sim NaYoung

Published 23 Feb.2024 13:16(KST)

Updated 26 Feb.2024 12:16(KST)

Price Stagnation in Reconstruction Complexes in Gangnam 4 Districts

On the 5th, from the Lotte World Tower observatory in Songpa-gu, Seoul, where apartment prices and jeonse prices continue to rise without turning downward, apartments in the Gangbuk area are being observed. Photo by Kang Jin-hyung aymsdream@

Seoul apartment prices have stopped fluctuating since January 19, with a 0% change rate. The redevelopment complexes in the Gangnam 4 districts (Gangnam-gu, Seocho-gu, Songpa-gu, Gangdong-gu) have shown stagnant price trends (0% change rate) for two months since December 22 last year.

According to Real Estate R114's 'Weekly R Report' on the 23rd, general apartments, except for some slight fluctuations in apartments over 20 years old, still show no price changes as the gap between sellers' and buyers' desired prices remains.

Illustration by Kim Dahee

On the other hand, Seoul apartment transaction volume in January recorded over 2,000 cases, raising expectations for recovery in transactions and buyer sentiment. Although the transaction volume slightly increased compared to October-December last year, it remains insufficient. Considering the high interest rate burden and strengthened financial regulations, it is necessary to observe the trend further before judging the recovery of buying activity.

A Real Estate R114 official said, "Seoul apartment prices have been flat for six consecutive weeks, which is due to the implementation of the debt service ratio (DSR) for mortgage loans and reduced lending, increasing the burden on self-financing."

In the fourth week of February, a total of 6,471 households (5,452 general sales) across eight complexes nationwide will begin sales. Applications will be accepted for 'Humanville Ilsan Class One' in Siksa-dong, Ilsandong-gu, Goyang-si, Gyeonggi; 'Hillstate Dujeong Station' in Dujeong-dong, Seobuk-gu, Cheonan-si, Chungnam; and 'Seosin The Sharp Vivaldi' in Seosin-dong, Jeonju-si, Jeonbuk, among others.