The rise in Seoul apartment sale prices in May slowed slightly. In 16 of Seoul's 25 districts, the increase in sale prices narrowed from the previous month. In particular, Gangnam District has seen its decline widen for three straight months since sale prices turned downward in March. Districts where the month-over-month increase in sale prices was larger than the previous month totaled nine, including Jung District, as well as Jongno, Dobong, Geumcheon, Nowon, Yongsan, Seocho, Mapo, and Dongjak.
Despite the smaller increase in sale prices, the outlook index for Seoul sale prices stayed above the baseline of 100 for the second straight month, with expectations prevailing that home prices will rise ahead.
According to KB Real Estate on the 25th, the rise in Seoul apartment prices in May (survey as of May 11) was 0.83%, a slight slowdown from the previous month's 1.00%. It was the smallest monthly increase in apartment sale prices this year. Monthly apartment price increases were 0.87% in Jan., 1.34% in Feb., 1.43% in Mar., and 1.00% in Apr.
By area, Jung District (1.94%), Dongdaemun District (1.52%), Seongbuk District (1.39%), Dongjak District (1.37%), Gangseo District (1.34%), Seongdong District (1.27%), and Guro District (1.24%) led the gains.
Compared with the previous month, the only area where apartment sale prices fell was Gangnam District. Gangnam District posted a change of -0.41% and has seen home prices decline for three consecutive months since Mar. (-0.16%). The weakness was especially pronounced among high-priced apartments. The KB Leading Apartments 50 Index was 98.7, down 0.55% from the previous month, marking a third straight monthly decline. The KB Leading Apartments 50 selects the top 50 apartment complexes by market capitalization as of each Dec. and indexes monthly changes in their market capitalization.
All other districts saw sale prices rise. Among them, Jung District (0.50→1.94%), Jongno District (0.54→1.01%), Dobong District (0.50→0.95%), Geumcheon District (0.21→0.62%), Nowon District (0.93→0.95%), Yongsan District (0.42→0.67%), Seocho District (0.21→0.31%), Mapo District (0.95→1.03%), and Dongjak District (1.35→1.37%) posted larger increases in sale prices than the previous month.
The outlook leaned toward a rise in Seoul home prices ahead. The Seoul sale price outlook index rose 8.4 points to 120.6. It increased for two months in a row and stood above the baseline of 100. By zone within Seoul, both the 14 northern districts (124.7) and the 11 southern districts (116.9) climbed 8.5 points from the previous month.
This month, Seoul apartment jeonse prices rose 0.83%, with the pace of increase easing by 0.03 percentage point from the previous month. Jeonse price gains were high in Gangbuk District (1.86%), Seongbuk District (1.36%), Nowon District (1.35%), Dobong District (1.33%), Seodaemun District (1.21%), Gwangjin District (1.19%), and Seongdong District (1.17%).
The Seoul jeonse price outlook index rose 6.4 points to 138.8. It has exceeded the baseline of 100 for 16 straight months, indicating a prevailing view that jeonse prices will rise ahead.