"Seoul Apartment Sale Prices Expected to Remain at Slightly Firm Levels"

Apartment prices in the Seoul metropolitan area have maintained a 0.01% increase since mid-August. Until July, apartment sales volume and price growth supported active site visits, purchase requests, and contracts. However, in August, seasonal factors along with fatigue from the surge in transactions since March have accumulated, causing a slight slowdown in buyer activity. As commercial banks are expected to tighten loan regulations further, the increase in sales prices is likely to be limited to a firm range (0.00~0.02%) for the time being.

On the 31st, Real Estate R114 announced the weekly market report for metropolitan area apartments for the last week of August, reflecting these trends. According to Real Estate R114, apartment sale prices in Seoul rose 0.02% for two consecutive weeks, maintaining the increase. General apartments rose 0.02%, while reconstruction projects remained flat (0.00%). New towns and Gyeonggi·Incheon areas were adjusted upward by 0.01% each.

In Seoul, the upward trend continued mainly in large complexes with over 1,000 households in the northeastern area. By individual districts, prices rose in the following order: Jung-gu (0.09%), Seongbuk (0.05%), Dongdaemun (0.04%), Nowon (0.04%), Dongjak (0.04%), and Mapo (0.04%). In new towns, Gwanggyo led the price increase.

Gwanggyo, which has seen a continuous rise for four consecutive weeks since the first week of August, increased by 0.14%, with prices rising 5 million to 10 million KRW in places like Gwanggyo Nature & Hillstate in Iui-dong, Suwon. In Gyeonggi·Incheon, prices rose mainly in the southern Gyeonggi area, including Suwon (0.04%), Incheon (0.04%), Gunpo (0.03%), Hwaseong (0.01%), Uiwang (0.01%), Anyang (0.01%), and Gwacheon (0.01%). Uijeongbu saw a 0.01% decline as prices dropped about 2.5 million KRW in areas like Singok-dong Punglim I-Won.

The jeonse (long-term lease) market is taking a brief pause ahead of the autumn moving season. Seoul saw a 0.02% increase, new towns remained flat (0.00%), and Gyeonggi·Incheon experienced a slight rise of 0.01%.

In Seoul, jeonse price increases were larger mainly in small to medium-sized apartments in outer areas. By district, prices rose in Gangbuk (0.08%), Eunpyeong (0.05%), Yangcheon (0.05%), Geumcheon (0.05%), and Guro (0.05%).

New towns recorded flat prices (0.00%) across all areas, showing limited price movement. In Gyeonggi·Incheon, individual districts with increases included Suwon (0.10%), Gunpo (0.07%), Hwaseong (0.04%), Uiwang (0.01%), Guri (0.01%), Gwangmyeong (0.01%), and Incheon (0.01%).

A Real Estate R114 official stated, "As the increase in household loans does not subside, regulations on jeonse loan limits are tightening following mortgage loans. Some commercial banks have limited jeonse loan ceilings or suspended conditional jeonse loans to control their use in gap investments (purchasing homes with jeonse deposits)."

He added, "If such measures spread across the banking sector, jeonse demand in metropolitan apartments will find it difficult to locate properties eligible for jeonse loans, leading to an increase in cases shifting to half-jeonse or monthly rent markets. At the same time, the suspension of conditional jeonse loans could further reduce jeonse supply in an already tight market, potentially intensifying jeonse price increases ahead of the upcoming moving season."

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