The real transaction prices of multi-family and villa dwellings in Seoul have reverted to the levels of July to August 2022, before the full-blown jeonse fraud crisis, according to a survey. The real transaction prices rose at the largest rate in 2 years and 9 months.
According to the Korea Real Estate Board, the real transaction price index for multi-family and villa dwellings in Seoul rose by 2.05% in March compared to the previous month, marking three consecutive months of increases. The increase compared to the previous month was the highest since June 2022 (2.30%).
The real transaction prices of villas in Seoul showed an increase of over 10% for two consecutive years from 2020 to 2021 but dropped by 2.22% in 2022 when the jeonse fraud crisis emerged. In 2023, prices rose by 0.85%, remaining subdued.
As the jeonse fraud issue subsided, last year's real transaction prices rose by 3.44%, and this year's accumulated increase for January to March reached 3.58%, surpassing last year's annual rate.
In March, the real transaction price index for villas in Seoul rose to 143.7, approaching the levels of August 2022 (143.9).
In March, the transaction volume of multi-family and villa dwellings in Seoul reached 3,024, a 31.3% increase compared to the previous year (2,304 transactions). It is the first time since July 2022 that the transaction volume for villas in Seoul surpassed 3,000.
In Gyeonggi Province, the real transaction prices for multi-family and villa dwellings rose by 1.40% in the first quarter, but other regions have struggled. In Incheon, villa real transaction prices dropped by 2.86% in the first quarter, continuing a four-year decline since 2022. In rural areas, prices fell by 2.57% in the first quarter.