Seoul Home Price Growth Slows... Last Month's Increase Lowest Since October Last Year

Korea Real Estate Board Releases February National Housing Price Trend Survey

Last month, apartment prices in Seoul rose by 0.66% compared to the previous month. This is the lowest rate of increase since October of last year.

According to the nationwide housing price trend survey for February released by Korea Real Estate Board on March 16, the nationwide change rate was recorded at 0.23%, down 0.05 percentage points from the previous month. While metropolitan and provincial cities outside the Seoul metropolitan area remained mostly flat with little change, the upward trend in the metropolitan region, centered on Seoul, is clearly moderating. The rate of increase in Seoul was 0.25 percentage points lower than the previous month, and Incheon saw a decrease of 0.03 percentage points. Gyeonggi Province maintained the same rate of increase as the previous week.

The Korea Real Estate Board explained, "In the Seoul and metropolitan area, there is an increase in listings with lower asking prices and more inquiries from potential sellers, while in reconstruction project zones, transactions at higher prices continue. Thus, despite the mixed market, the overall upward trend is being maintained."

Apartment complex viewed from Namsan Observatory in Seoul. Photo by Yonhap News

The upward trend in apartment prices in Seoul is showing signs of slowing down. Apartments in Seoul are subject to land transaction approval, and prices continued to soar last year. While the rate of increase in January this year was about 1.07% compared to the previous month, it slowed to 0.74% last month. The slowdown is even more pronounced compared to multi-family housing (from 0.80% to 0.64%) and detached houses (from 0.36% to 0.32%) in Seoul.

The rate of increase for Seoul's jeonse (long-term lease) and monthly rent prices also narrowed compared to the previous month. The jeonse price growth rate for Seoul housing was 0.35%, down 0.11 percentage points over the same period. A decrease in the rate of increase for apartment jeonse prices contributed to this trend. In Seoul, districts such as Nowon, Seongdong, Seongbuk, Seodaemun, and Eunpyeong recorded higher growth rates than the average, while in Songpa District, jeonse prices fell due to new housing supply. The increase in monthly rents in Seoul was 0.41%, marking the lowest level since October of last year.

Meanwhile, among Seoul's 25 districts, Yeongdeungpo District recorded the highest rate of increase in sale prices last month at 1.12%. Gangnam District had the lowest rate at 0.04%. For jeonse prices, Nowon District saw the largest increase at 0.82%, while Songpa District dropped by 0.21%. Nowon District also recorded the highest increase in monthly rent at 0.87%.

This content was produced with the assistance of AI translation services.