As the increase in apartment prices in Seoul expanded, the prices of apartments in the metropolitan area continued to rise, but local areas, including the five major cities, turned to decline compared to the previous week.
According to Real Estate R114 on the 20th, the national apartment sales price in the third week of this month increased by 0.10% compared to last week. Seoul rose by 0.29%, showing a larger increase than the previous week (0.22%).
The metropolitan area also rose by 0.15% due to the influence of Seoul, but Gyeonggi Province and Incheon fell by 0.02%. The five major cities (0.12% to -0.05%) and other regions (0.10% to -0.06%) turned from an increase last week to a decline this week.
Among the 17 cities and provinces nationwide, there were 4 areas that increased and 13 areas that fell, indicating that declining regions predominated. The areas that increased this week were Seoul (0.29%), Chungbuk (0.03%), Gyeonggi (0.01%), and Jeonbuk (0.01%), while the areas that fell were notable in Chungnam (-0.12%) and Jeju (-0.12%).
National apartment rental prices rose by 0.04%. The increase was smaller compared to the previous week (0.06%). Seoul recorded 0.05% and the metropolitan area recorded 0.04%, showing no significant differences by region. Major areas excluding Seoul, such as Gyeonggi and Incheon (0.03%), the five major cities (0.03%), and other regions (0.02%), also showed a moderate upward trend. Among the 17 cities and provinces nationwide, there were 12 areas that increased, 1 that remained stable, and 4 that fell, indicating that increasing regions predominated.
Real Estate R114 noted, "There is a concern that major preferred areas outside of the three districts of Gangnam in Seoul (Gangnam, Seocho, and Songpa) may become new targets for regulations, and with the implementation of debt regulations such as the stress debt service ratio (DSR) level 3 in the second half, the limit for housing mortgage loans is likely to be reduced, making the demand for dwellings somewhat anxious. The volume of transactions that had been sluggish is starting to bounce back, and a noticeable increase in transaction volume is observed, confirming a high rise in sales prices of about 0.40% to 0.50% within a week, centered around preferred areas that remain non-regulated, such as Gwangjin, Dongjak, Mapo, Gangdong, and Seongdong in Seoul."
He further stated, "As the new government has stated in its promises, there is a need to seek to expand supply to control demand. However, since large-scale supply expansion inevitably requires regulatory easing, it appears that the government faces challenges in balancing both price stability and supply expansion."