As a result of the government's June 27 household debt measures announcement, apartment prices nationwide have reverted to a downward trend for the first time in seven months.
According to Real Estate R114 on the 22nd, the nationwide apartment sales prices decreased by 0.02% in the fourth week of August, shifting from a 0.05% increase last week to a decline. This marks the first nationwide decrease since January of this year.
Seoul saw a 0.01% increase, significantly reducing the growth rate compared to last week (0.14%). The Gyeonggi-Incheon area and the capital region fell by 0.04% and 0.01%, respectively. The five major metropolitan areas remained stable (0.00%), while other regions dropped by 0.10%. Among the 17 cities and provinces nationwide, there were 4 areas with increases and 13 areas with decreases, indicating that declining areas were predominant.
Regionally, Busan (0.03%), Seoul (0.01%), Daegu (0.01%), and Ulsan (0.01%) saw increases, while Sejong (-0.31%), Jeju (-0.16%), Gyeongnam (-0.09%), Daejeon (-0.08%), and Gyeongbuk (-0.08%) experienced declines.
The nationwide apartment jeonse prices transitioned from stability to an increase of 0.10% compared to last week. Seoul rose by 0.14%, the capital region by 0.12%, and the Gyeonggi-Incheon area by 0.09%. The five major metropolitan areas increased by 0.07%, while other regions showed a 0.03% fluctuation. Among the 17 cities and provinces nationwide, there were 15 areas with increases, 1 stable, and 1 decrease, indicating that increasing areas were predominant.
Real Estate R114 noted that "with the impact of comprehensive lending regulations leading to stability in sales prices and transaction volume, the rental market, particularly for monthly rents, is drawing attention due to steady transaction volume and rapid transition to monthly payments," adding that "the June 27 measures included significant regulations that make it difficult for those in lower income brackets to secure funds for jeonse, such as the ban on conditional jeonse loans, reductions in policy loans particularly for jeonse, limitations on jeonse loan guarantee ratios, constraints on loans for moving costs related to redevelopment projects, and restrictions on credit loan limits for borrowers, forcing financially constrained households to inevitably choose monthly rent (or semi-jeonse) contracts."
He added, "The problem is that this trend toward monthly rent is likely to further stimulate jeonse prices instead of stabilizing them, meaning that the repressed demand for home ownership may actually drive increased demand in the rental market."