In the last week of October (27–31), the rise in both Seoul apartment sale prices and jeonse prices grew compared with the previous week. Despite the Oct. 15 real estate measures, which released tighter loan regulations and expanded regulated areas, analysts said the measures have not produced a price-stabilizing effect.
◇ Seoul sale prices up 0.42%
On the 31st, Real Estate R114 said Seoul apartment sale prices in the last week of October rose 0.42%, with the increase widening compared with the previous week (0.08%). Gyeonggi and Incheon and the greater Seoul area rose 0.15% and 0.30%, respectively, and the five major metropolitan cities climbed 0.10%. Other regions fell 0.01%. Of the 17 cities and provinces nationwide, eight rose and nine fell, showing little difference. The national sale price growth rate was 0.25%, with the upward trend widening from the previous week (0.07%).
By region, ▲ Seoul (0.42%) ▲ Gyeonggi (0.20%) ▲ Busan (0.19%) ▲ Ulsan (0.15%) rose, while ▲ Gangwon (-0.11%) ▲ Jeju (-0.11%) ▲ Gwangju (-0.07%) fell.
On a monthly basis in September, the national sale price change rate was 0.54%, with the increase expanding from the prior month (0.45%). Real Estate R114 projected the trend of widening sale price changes would continue in October.
◇ Jeonse price gains also widen
Jeonse price gains also widened. In the last week of October, nationwide apartment jeonse prices rose 0.11%. Seoul climbed 0.18%, with the increase widening from the previous week (0.04%), while Gyeonggi and Incheon rose 0.09%, the five major metropolitan cities 0.05%, and other regions 0.04%, continuing an upward trend across all major areas nationwide.
Of the 17 cities and provinces nationwide, 16 rose and one was flat, with no declining regions. By individual area, ▲ Seoul (0.18%) ▲ Jeju (0.14%) ▲ Gyeonggi (0.11%) ▲ Daejeon (0.11%) rose by 0.10% or more, while Gangwon was limited at a flat (0.00%) level. Meanwhile, the national monthly jeonse price change rate in September was 0.33%, with Seoul, Gwangju, and North Gyeongsang jumping more than 0.30% in a month and leading the rise in jeonse prices. No major trend change in jeonse prices was projected for October.
Yoon Ji-hae, head of the research lab at Real Estate R114, analyzed, "Despite the Oct. 15 measures, which are strongly aimed at curbing demand, the apartment market is showing a mood where demand is locked in and listings are also being locked up at the same time." Yoon added, "Designating land transaction permit zones in preferred areas clearly curbs transaction volume, but because it reduces both sellers and buyers, the intended price-stabilizing effect is likely to be diluted."