As apartment sale prices in the Gyeonggi and Incheon regions have significantly declined, overall apartment prices in the metropolitan area have also fallen.
According to Real Estate R114, the national apartment sale prices in the second week of this month dropped by 0.04% compared to the previous week.
While Seoul remained stable at 0%, the metropolitan area decreased by 0.03%. Within the metropolitan area, the Gyeonggi and Incheon regions, excluding Seoul, led the decline with a 0.08% drop. The five major cities fell by 0.05%, and other regions declined by 0.09%, showing a larger drop compared to the metropolitan area.
Among the 17 cities and provinces nationwide, 14 experienced declines, 2 remained stable, and 1 saw an increase, indicating a prevalent downward trend. The largest declines were seen in Sejong (-0.16%), North Chungcheong (-0.14%), Daegu (-0.12%), Daejeon (-0.12%), Gangwon (-0.12%), South Jeolla (-0.11%), and South Chungcheong (-0.10%).
Contrary to the decline in sale prices, rental prices showed an upward trend. In the second week of January, the nationwide apartment rental prices rose by 0.01% compared to the previous week. Seoul increased by 0.03%, and the metropolitan area rose by 0.01%. Within the metropolitan area, the Gyeonggi and Incheon regions, excluding Seoul, remained stable at 0%, while Seoul led the nationwide upward trend.
The five major cities and other regions also saw limited price movements at stable levels. Among the 17 cities and provinces nationwide, 2 experienced declines, 14 remained stable, and 1 saw an increase, indicating a preponderance of stability. Incheon (-0.02%) and Daegu (-0.01%) were among those that declined.
Real Estate R114 noted that the political and economic uncertainties stemming from the state of emergency and impeachment situations are expected to continue into 2025, while the suppressed demand due to widespread lending restrictions has not recovered and remains retracted. Although major banks have taken a somewhat relaxed stance on loan regulations in light of interest rate cuts, the seasonal off-peak period is causing demand movements to approach a wait-and-see situation.
It also added that in the midst of opposing movements in the sale and rental markets, where sales are falling and rents are rising, the transaction volume of apartments in Seoul, a price-leading area, has shrunk to around 3,000 transactions on a monthly basis (compared to November and December of last year), and that short-term demand movement changes need to be proactively verified in the transaction indicators.