The national housing prices have ceased the upward trend that continued for six months since June of last year and have turned to a decline. The wait-and-see attitude in Seoul and the capital region has continued, causing the extent of the increase to contract.
According to the 'December national dwelling price trend survey results' released by the Korea Real Estate Board on the 15th, the comprehensive sales prices of dwellings (apartments, multi-family houses, single-family houses, etc.) across the country fell by 0.07% compared to the previous month. This marks a reversal from the 0.01% increase the month before.
In the capital region (0.11%→0.00%), the prices have stabilized, while in Seoul (0.20%→0.08%), the extent of the increase has contracted. In the provinces, the decline has intensified (-0.09%→-0.14%).
In individual areas of Seoul, Guro District (-0.09%) saw a decline focused on the Gocheok and Guro-dong older constructions, while Gwanak District (-0.06%) fell mainly in Bongcheon and Sinrim-dong. However, Gangnam District (0.24%) rose, concentrated in major complexes in Gaepo and Nonhyeon-dong, Seocho District (0.21%) rose mainly in redevelopment areas in Jamwon and Banpo-dong, and Yeongdeungpo District (0.16%) increased primarily in Dangsan and Singil-dong.
In the northern regions, Yongsan District (0.22%) rose primarily in smaller-sized properties in Dowon and Singye-dong, Jung District (0.15%) increased mainly in Sindang and Jungnim-dong, Mapo District (0.15%) rose focused on major complexes in Ahyeon and Yeomni-dong, Gwangjin District (0.14%) increased particularly in the well-established residential environment areas of Jayang and Gwangjang-dong, and Jongno District (0.13%) saw an increase centered on Muak-dong and Myeongnyun 2-ga.
Gyeonggi Province stabilized from a previous increase of 0.08%, while Incheon fell by 0.27%, widening its drop from a 0.06% decrease last week.
The Korea Real Estate Board noted, "Although localized increases are observed in areas with good residency conditions within Seoul and the capital region, the market pause is expanding due to seasonal off-seasons and loan regulations. The sales market is showing a mixed trend of localized increases amidst deepening buying stagnation in Seoul and the capital region, while declines are seen predominantly in regions with unsold supply and backlogs across the country."
The national jeonse (long-term lease) prices rose by 0.01%, marking a contraction in the extent of the rise compared to the previous month (0.09%). In the capital region (0.19%→0.03%) and Seoul (0.15%→0.02%), the extent of the increase has decreased, while the provinces (0.01%→-0.01%) have shifted from an increase to a decline.
The national monthly rent prices rose by 0.1%, showing a contraction in the extent of the increase compared to the previous month (0.12%). In the capital region (0.21%→0.15%) and Seoul (0.18%→0.10%), the extent of the increase has decreased, while the provinces (0.03%→0.05%) have seen an escalation in their increase.
The Korea Real Estate Board stated, "The rise in provisions focused on dwellings in areas with good residency conditions persists, yet the preference for new contracts is decreasing due to the influence of incoming supply in some regions and the burden of jeonse fund loan interest. Both jeonse and monthly rent have seen a contraction in their increase. "