As a result of the government's June 27 household debt policy announcement, the weekly increase in apartment prices in the Seoul area has significantly slowed down.
According to Real Estate R114 on the 14th, the national apartment sales price for the third week of August rose 0.05% compared to the previous week. The increase compared to last week (0.11%) has decreased. Seoul saw a 0.14% increase, reflecting a slight reduction from last week's increase of 0.15%.
In the Gyeonggi and Incheon areas, prices rose by 0.02% and 0.08%, respectively. On the other hand, the five major metropolitan cities and other regions fell by 0.01% and 0.13%, respectively. Among the 17 cities and provinces nationwide, five saw increases, one held steady, and eleven experienced declines, indicating a predominance of declining areas. Regionally, Seoul (0.14%), Gyeonggi (0.04%), and Ulsan (0.03%) saw increases, while Sejong (-0.52%), Jeonnam (-0.20%), Gwangju (-0.10%), and Incheon (-0.08%) experienced declines.
The national apartment rental prices have shifted from a 0.05% increase last week to a stable (0.00%) position this week. While Seoul dropped by 0.02% and the metropolitan area fell by 0.01%, Gyeonggi and Incheon saw a 0.01% increase. The other five major metropolitan areas remained stable (0.00%), and other regions saw limited price movement at the 0.01% level. Among the 17 cities and provinces nationwide, twelve experienced increases while five saw declines, indicating a predominance of increasing areas.
Real Estate R114 stated, "Since the announcement of the June 27 policy, about six to seven weeks have passed, and the weekly increase in apartment prices in the Seoul area has significantly slowed down. Before the policy, the weekly fluctuation rate of Seoul apartments from three price survey organizations (Korea Real Estate Board (REB), Real Estate R114, and KB Kookmin Bank) was high at around 0.40% to 0.50%, but in the recent surveys conducted over the past one to two weeks, it has reduced to a level of 0.10% to 0.15%."
It was added, "In particular, the area of Gangnam, which had seen a sharp rise before the announcement of the policy, has currently reduced its increase range to 0.10% to 0.30%. The impact of the June 27 policy, assessed as an unprecedented regulatory measure, has been effectively at work," and noted, "However, the fact that the increase has slowed does not imply a shift to weakness, so caution is advised in interpretation. It is necessary to expedite the development of a comprehensive real estate plan that encompasses loans, taxes, supply, and regulations before the market becomes more resilient."