Songpa, Seongnam address apartment complex seen from Lotte Tower
Despite the measures to raise the regulated areas, the drop in apartment prices across the country widened more than last week. Seoul and the metropolitan area broke the record for the biggest drop ever in a week. The cold wave in the trading market is expected to continue as the Bank of Korea also raises the base rate, albeit slightly.
On the 24th, the Korea Real Estate Agency investigated the national weekly apartment price trends for the 3rd week of November (from the 21st).
Apartment prices in Seoul and the metropolitan area, which showed the biggest weekly drop last week, rewrote the record for the biggest drop this week. The metropolitan area (-0.57% → -0.61%) and Seoul (-0.46% → -0.52%) widened their decline.
In Seoul, the 14 districts of Gangbuk (-0.61%) showed a greater decline than the 11 districts of Gangnam (-0.44%). The rate of decline remains high in remote areas such as Nowon-gu (-0.88%), Dobong-gu (-0.83%), and Gangbuk-gu (-0.74%). In the Gangnam area, the decline was higher than the average in the southeast areas such as Songpa-gu (-0.57%) and Gangdong-gu (-0.55%).
The Korea Real Estate Agency said, “The wait-and-see attitude is increasing as buyers wait for further reductions due to the possibility of interest rate hikes and concerns about price drops.” .
Incheon (-0.79% → -0.83%) also increased the decline, and the decline was high in autonomous regions with new cities such as Seo-gu (-0.96%), Jung-gu (-0.95%), and Yeonsu-gu (-0.90%). In Gyeonggi (-0.59% → -0.61%), the weekly decline was high in Gwangmyeong (-1.11%), Bucheon-si (-1.04%), Dongan-gu, Anyang (-1.02%), and Yangju-si (-1.01%). Regions other than the metropolitan area (-0.37%→-0.40%), 5 metropolitan cities (-0.48% →-0.51%), 8 provinces (-0.27% →-0.29%), Sejong (-0.62% →-0.64% ) The decline increased in all regions.
Weekly flat jeonse prices also fell by 0.59% this week, extending the decline from last week (-0.53%). The decline increased in the metropolitan area (-0.70% → -0.81%), Seoul (-0.59% → -0.73%), and provinces (-0.37% → -0.39%) all increased.
Ham Yeong-jin, head of Jikbang Big Data Lab, said, “It is the off-season for transactions, interest rates continue to rise, and economic conditions are deteriorating, with the outlook for economic growth next year are lowered.” A contraction and price correction will follow.”
