As apartment prices in Seoul and the metropolitan area have risen significantly, the increase in nationwide apartment sale prices has also widened.
According to Real Estate R114, the nationwide apartment sale price in the first week of this month rose by 0.12% compared to last week. This is a decrease in the increase compared to the previous week (0.23%).
Seoul increased by 0.25%, and the metropolitan area also saw a rise of 0.15%. The Gyeonggi-Incheon region rose by 0.03%. In the provinces, the five major metropolitan cities increased by 0.07%, while other regions fell by 0.03%.
Among the 17 cities and provinces nationwide, there were increases in 8 places, no change in 2 places, and decreases in 7 places, indicating a slight predominance of rising areas centered around Seoul and the metropolitan cities. Regions with significant increases include Ulsan (0.36%), Seoul (0.25%), and Busan (0.22%). Regions with significant decreases include Jeonnam (-0.42%), Daegu (-0.24%), and Jeju (-0.13%).
The rental market has experienced a prolonged upward trend centered around Seoul and the metropolitan area for nearly two years, while the transition seems to be stabilizing around no change. In the first week of March, the nationwide apartment rental price recorded no change (0.00%). The fluctuation rates for Seoul, the metropolitan area, Gyeonggi-Incheon, the five major metropolitan cities, and other regions also remained limited around no change (0.00%). Among the 17 cities and provinces nationwide, there were increases in 2 places, no change in 14 places, and a decrease in 1 place, indicating a prevailing trend of stabilization. Regionally, Incheon (0.01%) and Sejong (0.01%) rose, while South Chungcheong fell by 0.01%.
Real Estate R114 noted that "considering the remaining reporting period, February apartment transaction volume in Seoul may reach around 4,000 to 5,000 cases, the highest expected in six months." It explained that the main reasons for the revival of subdued transactions are the relatively relaxed lending regulations compared to the end of last year, the Bank of Korea's interest rate cut, and the lifting of the land transaction permit zone in Seoul, which stimulated buying sentiment.
It also added that "the preference for a ‘single excellent unit’ remains due to delays in tax and system reforms caused by political and governmental instability," and that numerous records exceeding the peak prices recorded from 2021 to 2022 have been confirmed in the price surveys of Real Estate R114 and the Ministry of Land, Infrastructure and Transport, centered around the Gangnam area and so-called 'Mayongseong' (Mapo, Yongsan, Seongdong), suggesting an anticipation of warmth spreading to the Han River belt and surrounding areas in the seasonal peak in March.