Seoul Apartment Prices Up 0.39%... Jeonse Prices Continue to Fall

Nationwide Sale Prices Rise by 0.18%
Jeonse Prices Fall in 16 Regions Across the Country

After three consecutive weeks of decline last month, apartment sale prices in Seoul turned upward in the first week of May. In contrast, amid political instability following the presidential election, demand for lease contracts decreased, leading to a nationwide decline in jeonse prices.

According to Real Estate R114 on May 6, nationwide apartment sale prices rose by 0.18% in the first week of May compared to the previous week. By region, Seoul led the price increase in the metropolitan area with a 0.39% rise, while the broader metropolitan area (including Seoul, Gyeonggi, and Incheon) saw a 0.22% increase. Sejong recorded a 0.46% rise. In contrast, Gyeonggi and Incheon, excluding Seoul, showed only a 0.01% change, remaining at a strong but stable level. The five major metropolitan cities recorded a 0.03% increase, and other regions posted a 0.10% rise, indicating that, except for Seoul and Sejong, most areas remained generally weak.

View of the apartment complex in Songpa-gu from the Lotte World Tower observation deck. Photo by Yonhap News

On a nationwide scale, more regions experienced increases than declines. Out of the 17 provinces and metropolitan cities, 15 saw price increases, one remained flat, and one declined. North Gyeongsang Province was the only region among the 17 to record a decrease, falling by 0.04%. On a monthly basis last month, the nationwide rate of change was 0.45%, up from 0.33% the previous month.

Unlike sale prices, jeonse prices showed weakness nationwide. Nationwide apartment jeonse prices fell by 0.32% compared to the previous week. By region, Seoul declined by 0.32%, the metropolitan area by 0.34%, Gyeonggi and Incheon by 0.36%, the five major metropolitan cities by 0.24%, and other regions by 0.27%, all showing a pronounced downward trend. The region with the largest decrease was Incheon, at -0.47%.

Experts analyzed that the lease market is showing limited activity amid political instability stemming from impeachment and the early presidential election. Yoon Jihae, senior researcher at Real Estate R114, said, "In Seoul, where attention is focused due to the preference for a single prime property and the easing of redevelopment regulations, the upward trend does not appear to be abating." However, she also explained, "In the lease market, patterns of decline and increase are repeating on a weekly basis, so the overall direction remains unclear."

She added, "This is interpreted as tenants responding mainly through contract renewals rather than new contracts, as economic uncertainty has deepened due to nearly six months of ongoing political uncertainty from December of last year through May of this year."

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