Apartment prices in Seoul are on the rise again in 15 weeks… Expansion of rise in Yongsan and Gangnam-gu
Ahead of the inauguration of the new government, apartment prices in Seoul turned upward for the first time in 15 weeks in the first week of May. Apartment prices in major metropolitan areas, including Seoul, are rising in anticipation of easing of real estate regulations such as reconstruction. Gyeonggi-do also stopped the decline for the first time in 14 weeks due to good news for the first phase of the new city reorganization.
According to a survey by the Korea Real Estate Agency on the 5th, apartment prices in Seoul rose by 0.01% this week (the first week of May). It is the first time in 15 weeks that apartment prices in Seoul rose by 0.01% in a survey on January 17 of this year. There were many places that showed a wait-and-see attitude due to concerns about an additional interest rate hike and global economic uncertainty, but it seems to have turned upward as some reconstruction areas and high-rise complexes in the Gangnam area rose.
In the case of Yongsan-gu, which has good news for the relocation of the presidential office, it rose 0.04% ahead of the inauguration of the new government, up from 0.03% last week. In the Gangnam area, Seocho-gu (0.05%) and Gangnam-gu (0.03%) maintained the same rate of increase as last week, while Gangdong-gu rose by 0.02%, expanding the increase from last week (0.01%). On the other hand, apartment prices in Songpa-gu, where transactions with less than the previous actual transaction price increased, fell by 0.01%, showing a decline for the second week in a row.
Apartment prices in Gyeonggi-do, which have been weak recently, recorded a flat rate for the first time in 14 weeks since January 24 (0.00%). This week, Incheon apartment prices also stopped falling again for the first time in four weeks, and overall apartment prices in the metropolitan area (Seoul, Gyeonggi, Incheon) turned flat for the first time in 14 weeks.
Apartment prices in the first phase of major new towns were strong on the expectation of reconstruction. Apartment prices in Bundang-gu, Seongnam recorded a high rate of increase of 0.05% just like last week, and Goyang, where Ilsan New Town is located, increased from 0.01% last week to 0.03% this week. In Gunpo City, apartment prices in Sanbon New Town rose by 0.06% this week from last week’s flat rate.
Apartment prices in Icheon and Pyeongtaek were also strong at 0.23% each. On the other hand, Osan (-0.18%), Hwaseong (-0.13%), Suwon (-0.07%), and Yongin (-0.05%) saw an increase in the number of listings and the extent of the decline was wider than last week. Local apartment prices rose by an average of 0.01%.
In the Jeonse market, with the recent resumption of loans for Jeonse funds, the demand for Jeonse has been digested and the number of Jeonse and monthly rentals has decreased. Jeonse prices for apartments in Seoul stopped falling for the first time since January 24 (0.00%) and turned flat, while apartment prices in Gyeonggi and Incheon fell 0.02% and 0.01%, respectively, from last week.
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