▲Apartment price change rate for the fourth week of December 2023. (Data provided by Ministry of Land, Infrastructure and Transport)
The downward trend in apartment prices across the country continued until the last week of this year. Apartment prices in Seoul also fell following last week. However, it appears that the decline has been reduced compared to last week, erasing concerns about a further sharp decline. The increase in apartment rental prices nationwide has slowed compared to the previous week.
According to the weekly apartment price trend announced by the Korea Real Estate Board on the 28th, the national apartment price change rate in the fourth week of December (as of the 25th) was calculated to have decreased by 0.04%. This is an increase of 0.01 percentage points (p) compared to the previous week. Apartment prices nationwide have been falling for five consecutive weeks, including this week.
The rate of change in Seoul apartment prices was -0.03%. This is a 0.01% point increase from last week’s -0.04%. Apartment prices in Seoul have been falling throughout this month, recording a downward trend for four consecutive weeks.
By region in Seoul, weakness continued in most regions, including the three Gangnam districts (Seocho, Gangnam, and Songpa-gu). This week, Seocho-gu and Gangnam-gu recorded -0.03%. Songpa-gu and Gangdong-gu were both recorded at -0.03%, continuing the same level of decline as last week.
Yongsan-gu fell from flat (0.0%) last week to -0.02% this week. Seongdong-gu also recorded -0.01% this week after being flat last week. There was a slight increase compared to the previous week. Gangbuk-gu and Nowon-gu were recorded at -0.04% and -0.06%, respectively, while Dobong-gu was both weak at -0.06%.
The Real Estate Agency said, “Apartment prices in Seoul continue to receive inquiries for purchases focused on quick-sale properties, and transactions are quiet due to the prolonged wait-and-see attitude,” adding, “The downward trend continues as the overall asking price is adjusted downward by region and complex.”
Incheon and Gyeonggi regions also continued to decline. Incheon recorded -0.05% and Gyeonggi recorded -0.06% this week. In Incheon, the downward trend continued in Jung-gu (-0.14%) and Michuhol-gu (-0.13%). In Gyeonggi-do, Gwangju-si (-0.19%), Anseong-si (-0.16%), Dongducheon-si (-0.14%), and Ansan Sangnok-gu (-0.14%) showed weakness.
Jeonse prices also continued to decline due to the weak sales price. As of this week, the nationwide rental price was calculated to be 0.03%, down 0.02%p from the previous week. Seoul’s rate was 0.08%, down 0.03 percentage points from last week.
The Real Estate Agency analyzed, “In Seoul, the preference for jeonse continues due to worsening buying sentiment, but the increase has decreased as demand for jeonse has decreased due to seasonal effects and some low-priced properties have appeared.”