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Continued Decline in Apartment Prices Raises Concerns in South Korea

[딜사이트 박안나 기자] Sales prices for flats across the country have fallen for 9 weeks in a row. As the downward trend in sales prices continues for more than two months, the wait-and-see buying trend appears to be intensifying.

According to the weekly apartment price trend published by the Korea Real Estate Board on the 25th, the selling price of apartments nationwide in the fourth week of January (on January 22) decreased by 0.05% from the previous week. The decline widened compared to the previous week (-0.04%).

Sales prices of apartments in Seoul decreased by 0.03% compared to last week, and the decline decreased compared to the previous week.

The Korea Real Estate Board said, “Buyers’ wait-and-see attitude is intensifying due to uncertainty about the future real estate market,” and added, “Although purchase inquiries are quiet, there are only sporadic transactions focused on emergency sales is happening due to price adjustments, and the downward trend continues.”

The decline decreased in the metropolitan area, including Seoul (-0.06% → -0.05%), and widened in regional areas (-0.03% → -0.04%).

In the metropolitan area, the decrease in sales prices decreased in Seoul (-0.04% → -0.03%) and Incheon (-0.05% → -0.03%) compared to the previous week. In Gyeonggi (-0.07%), sales prices fell by the same amount as the previous week.

In regional areas, the decline increased in the five major metropolitan cities (-0.03% → -0.05%), including Daegu (-0.04% → -0.10%) and Busan (-0.06% → -0.07%).

Among the 178 cities, counties and districts in the announced areas, compared to last week, the areas with an increase increased (24 → 26), the areas with a steady state decreased (13 → 9), and decreased the areas with a decrease (141 → 143) increased.

National apartment rental prices rose by 0.02% compared to the previous week, increasing by the same amount as last week.

The increase in rent in the metropolitan area (0.05% → 0.05%) is maintained at the same level as the previous week. The rent increase in Seoul was 0.07%, the same as the previous week. The increase in Incheon (0.01% → 0.03%) and Gyeonggi (0.04% → 0.05%) increased compared to last week. Local jeonse prices, which had turned down last week, continued their weakness, falling 0.01%.

The Korea Real Estate Board explained, “Jeonse prices in Seoul continue to rise due to a shortage of properties for sale, mainly in complexes with good residential conditions, such as those near school districts and train stations, due to relocation demand in preparation. for the new school semester and a change in the demand for leases from those waiting to buy.”

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