House prices nationwide fell for two consecutive months. However, both the metropolitan area and Seoul saw an expansion in the price increase. The Gangnam Districts 3 (Gangnam, Seocho, and Songpa), designated as land transaction permit areas, recorded significant gains and continued the upward trend.
According to the ‘May Nationwide Housing Price Trend Survey Results’ released by the Korea Real Estate Board on the 16th, the nationwide comprehensive dwelling (apartments, multi-family houses, single-family homes, etc.) sales price in April fell by 0.02% compared to the previous month, maintaining the downward trend from the previous month.
Seoul rose by 0.38%, expanding the price increase compared to the previous month (0.25%). The metropolitan area (0.07%→0.10%) also saw an expansion in the price increase, while the provinces (-0.11%→-0.12%) experienced a broadened decline.
In Seoul's individual areas, Seocho District (0.95%) rose significantly, focusing on Banpo and Jamwon-dong, Songpa District (0.92%) primarily in Jamsil and Sincheondong, Gangnam District (0.84%) with a focus on Apgujeong and Daechidong, Yangcheon District (0.66%) mainly in Mok and Sinjeong-dong, and Gangdong District (0.61%) predominantly in the small to medium-sized areas of Goddeok and Myeongil-dong.
In the Gangbuk area, Seongdong District (0.65%) rose mainly around the major complexes in Geumho and Seongsu-dong, Yongsan District (0.62%) focused on Ichon and Sancheon-dong, Mapo District (0.62%) in Ahyeon and Yeomnidong, Gwangjin District (0.30%) predominantly in Gwangjang and Jayang-dong, and Jongno District (0.28%) mainly in Pyeong and Chungshin-dong.
In particular, the Gangnam Districts 3 (Gangnam, Songpa, Seocho) and Yongsan District saw significant price increases. These areas were designated as land transaction permit areas from March 24 due to an abnormal surge in house prices, yet they continued to show robust performance.
Gyeonggi Province fell by 0.05%, expanding the decline compared to the previous month (-0.02%), and Incheon decreased by 0.07% while maintaining the decline from last month.
The Korea Real Estate Board noted, “Inquiry for purchases in newly built and redevelopment complexes in Seoul and the metropolitan area remains steady, but transactions in existing and outer areas are somewhat sluggish.” They further explained, “Especially in Seoul and the metropolitan area, sales contracts are being signed in newly built and redevelopment complexes. However, in other areas, a wait-and-see attitude prevails, leading to cautious contract signing. Nationwide declines have also continued due to decreased demand for existing complexes in the provinces.”
Nationwide jeonse prices maintained a steady status (0%) this month, following the previous month. The metropolitan area (0.05%→0.06%) and Seoul (0.09%→0.15%) saw expansion in price increases, while the provinces maintained the decline (-0.05%→-0.05%).
Nationwide monthly rent prices increased by 0.05%, maintaining the price increase from the previous month. The metropolitan area (0.09%→0.10%) and Seoul (0.10%→0.16%) saw an expansion in price increases, while the provinces (0.01%→0.01%) continued to maintain the price increase.
The Korea Real Estate Board explained, “Demand for leases in areas around subway stations and good school districts continues, but there is a downward trend in outer areas with somewhat poor living conditions or aging complexes. Thus, jeonse remains steady while monthly rent maintains its upward trend.”