The announcement of the reassignment of the land transaction permission area in Seoul has shown that the rising trend of apartment prices in Seoul has been broken. After the removal of the permission area last month, Songpa District in Seoul turned to a decline.
According to the results of the national weekly apartment price trend survey conducted by the Korea Real Estate Board for the week of the fourth week of March (as of the 24th), the increase in apartment prices in Seoul was recorded at 0.11%. This is half of the increase from the previous week (0.25%).
The nationwide weekly apartment sale prices also turned to a decline (0.02%→-0.01%).
The Korea Real Estate Board noted, "While some preferred complexes, such as those undergoing reconstruction, continue to see concentrated demand and rising transactions, urgent buying demand is increasing only locally, and overall, the market sentiment has expanded, resulting in a reduced increase compared to last week."
Apartment prices in the metropolitan area (0.07%→0.03%) have also seen a reduced increase compared to the previous week. Gyeonggi Province (0.00%→0.00%) maintained a flat trend following the previous week. All regions except for Seoul and Gyeonggi Province (0.00%), Ulsan (0.01%), and Jeonbuk (0.02%) saw a decline in apartment prices compared to the previous week.
The slowdown in the rising trend of apartment prices in the metropolitan area is analyzed to be due to the impact of the expanded designation of the permission area announced on the 19th. The city of Seoul designated all apartments in the three Gangnam districts (Gangnam, Seocho, Songpa) and Yongsan District as permission areas starting on the 24th, prohibiting purchases of apartments with jeonse deposits.
Songpa District (0.79%→-0.03%) is the only area in Seoul where apartment prices have turned to a decline. The Korea Real Estate Board stated, "It appears that the decline was due to urgent sales in major complexes in Sincheon and Jamsil-dong." Seocho (0.69%→0.28%), Gangnam (0.83%→0.36%), and Yongsan District (0.34%→0.18%) saw their increases reduced by about half.
The area with the largest increase in apartment prices for the fourth week of March was Gwacheon City in Gyeonggi Province. The increase was 0.55%, which, while lower than the previous week (0.68%), was the highest in the country.