Seoul Apartment Prices Rise 0.5% in April... Rental Market Contraction Continues

Nationwide Increase of 0.16%... Ulsan Up 0.12%
Political Uncertainty Weakens Tenant Demand

In the second week of April, apartment sale prices in Seoul rose by 0.5%, driving price increases in the Seoul metropolitan area. In contrast, jeonse prices showed a contraction, declining in most regions nationwide.

According to Real Estate R114 on the 13th, nationwide apartment sale prices in the second week of April increased by 0.16% compared to the previous week. By region, Seoul led the metropolitan area’s rise (0.25%) with a 0.5% increase. Ulsan rose by 0.12%, while Jeonbuk and Jeju increased by 0.09% and 0.02%, respectively.

A flyer for sale and jeonse listings is posted at a real estate agency in Gangnam, Seoul. Photo by Kang Jin-hyung

On the other hand, the Gyeonggi and Incheon areas, excluding Seoul in the metropolitan area, fell by 0.06% compared to the previous week. The five major metropolitan cities and other provinces also declined by 0.11% and 0.06%, respectively. Notably, weakness was prominent in △Daejeon (-0.21%) △Gangwon (-0.17%) △Daegu (-0.14%) △Jeonnam (-0.13%).

On a monthly basis last month, the nationwide rate of change recorded 0.33%. Although most regions nationwide declined, Seoul rose by 1.18%.

Jeonse prices showed a contraction with 15 out of 17 cities and provinces nationwide recording declines. Despite the arrival of the spring moving season, tenant demand, which had been subdued due to political uncertainty, has not recovered. In the second week of April, nationwide apartment jeonse prices fell by 0.07% compared to the previous week, with Seoul and the metropolitan area dropping by 0.1% and 0.06%, respectively. Regions with significant declines included △Daejeon (-0.18%) △Chungbuk (-0.17%) △Busan (-0.16%) △Jeju (-0.12%) △Sejong (-0.11%) △Daegu (-0.11%).

However, as the early presidential election phase begins, it is expected that the delay in purchases due to political uncertainty will ease for the time being.

Yoon Jihae, chief researcher at Real Estate R114, said, "It is highly likely that populist pledges covering real estate development, transportation, systems, and regional balanced development will be periodically announced centered on major political parties. This also raises expectations for the next administration, so the delay or abandonment of purchases due to political issues, as seen in the past, will be significantly alleviated."

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