Capital Region Apartment Price Increase Narrows for 5 Consecutive Weeks... "Decline in Buying Demand"

Korea Real Estate Board November Second Week Apartment Price Trends

View of apartment buildings in downtown Seoul from Namsan [Image source=Yonhap News]

The rate of increase in apartment prices in the Seoul metropolitan area has narrowed for five consecutive weeks. This is interpreted as a sign that the perception of peak housing prices is spreading, leading to a cautious market sentiment and weakening buying demand, which in turn is slowing the upward trend in housing prices.

According to the weekly apartment price trend for the second week of November announced by the Korea Real Estate Agency on the 11th, as of the 8th, apartment prices in the Seoul metropolitan area rose by 0.23%, a smaller increase compared to the previous week (0.26%).

In the metropolitan area, the rate of increase has slowed for five consecutive weeks, moving from 0.34% → 0.32% → 0.30% → 0.28% → 0.26% → 0.23% since last month.

In Seoul, the apartment price increase rate narrowed from 0.15% last week to 0.14% this week. The Real Estate Agency explained, "Apartment prices rose mainly in popular complexes with expectations of progress in redevelopment projects or a shortage of listings, but overall transactions and buying demand decreased, leading to a reduction in the rate of increase for three consecutive weeks."

In Seoul, Yongsan-gu (0.27%) saw relatively significant apartment price increases mainly in Ichon-dong, where remodeling expectations exist, and Mapo-gu (0.23%) and Eunpyeong-gu (0.20%) also continued their upward trends. Seocho-gu (0.23%), Gangnam-gu (0.19%), Songpa-gu (0.18%), and Gangdong-gu (0.15%)?the four Gangnam districts?generally saw a contraction in buying demand, resulting in smaller increases.

In Incheon, prices rose by 0.33% this week, also showing a slowdown compared to the previous week (0.37%). Yeonsu-gu (0.47%) increased mainly in Songdo-dong and mid-to-low priced older complexes in Dongchun and Ongnyeon-dong, which have favorable living conditions, while Jung-gu (0.37%), Bupyeong-gu (0.37%), and Michuhol-gu (0.36%) also rose centered on areas with transportation improvements or mid-to-low priced complexes.

In Gyeonggi-do (0.29% → 0.27%), the rate of increase was large in Icheon-si (0.52%) and Osan-si (0.48%). Gunpo-si (0.40%), Ansan Sangnok-gu (0.39%), and Anseong-si (0.38%) also continued their upward trends.

Sejong City saw its decline widen from -0.01% last week to -0.10% this week. The Real Estate Agency explained, "Prices fell and market sentiment became cautious due to new housing supply and additional public land development burdens, leading to an expanded rate of decline compared to last week."

View of apartment buildings in downtown Seoul from Namsan, Seoul [Image source=Yonhap News]

This week, the nationwide apartment jeonse (long-term lease) prices rose by 0.16%, showing a slightly weaker upward trend compared to the previous week (0.17%).

In Seoul, prices rose by 0.12%, the same as the previous week. The upward trend continues mainly in station-area complexes with good school districts and transportation environments, but transactions have decreased due to seasonal low demand around the college entrance exam and concerns over loan regulations, maintaining the rate of increase.

Jeonse prices rose relatively significantly in Jung-gu (0.19%) and Mapo-gu (0.18%), and Gangdong-gu (0.15%), Seocho-gu (0.12%), Gangnam-gu (0.12%), and Songpa-gu (0.12%) maintained similar rates of increase as last week, continuing upward trends mainly in school districts and older complexes.

In Incheon (0.25% → 0.23%) and Gyeonggi-do (0.22% → 0.19%), the rate of increase in jeonse prices narrowed. In Gyeonggi-do, Anseong-si (0.50%) rose significantly mainly in Gongdo-eup and Jungri-dong, which have favorable residential environments, and Icheon-si (0.45%), Siheung-si (0.44%), and Ansan Sangnok-gu (0.36%) also continued their upward trends.

In Sejong City, apartment jeonse prices rose by 0.10%, a larger increase compared to the previous week (0.05%). The Real Estate Agency analyzed, "Jeonse demand increased mainly in Jongchon and Boram-dong, which have favorable living conditions, leading to a slight expansion in the rate of increase."

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