Expanding areas where house prices are falling in Seoul… Gangbuk-Dobong-gu also declines for the first time in 19 months

#1. A apartment in Gangbuk-gu, Seoul, with a size of about 1,000 units in the 3rd year of occupancy. This complex of 30 pyeong (with an exclusive area of ​​84 m²) was sold at 1.13 billion won in August, the highest price ever, and then traded at 1.08 billion won last month. It has lost 50 million won in 3 months. The number of properties registered with real estate agents is now 61, more than double the number at the end of June (27). An official from a nearby authorized real estate agency said, "The property was sold for 1.05 billion won a month ago, but no one was looking for it."

#2. B apartment in Dobong-gu, Seoul for 26 years. Although it is a large complex of about 2,400 houses, there are only two transactions this month. There are currently 105 for sale. This is in contrast to the fact that until the end of July, when demand for the last train of panic buying (panic buying) was concentrated, there were only four for sale. An official from a nearby authorized real estate agency said, "The asking price has dropped by only 10 to 20 million won, but buyers are only looking for a quick sale that has dropped 50 to 100 million won, and it is difficult to make a deal."

Apartment prices in Gangbuk-gu and Dobong-gu turned to a downward trend for the first time in a year and seven months. The decline in house prices is spreading in the metropolitan area and provinces, where house prices have surged for a short period of time due to a sharp drop in purchases due to loan regulations and interest rate hikes and the accumulation of properties.

According to the weekly apartment sales trend published by the Korea Real Estate Agency on the 30th, apartment prices in Gangbuk-gu and Dobong-gu fell 0.02% and 0.01%, respectively, from the previous week in the fourth week of December (as of the 27th). It is the first time in a year and seven months since the third week of May last year that apartment prices in the two areas turned downward. Eunpyeong-gu, where apartment prices turned downward for the first time in Seoul last week, fell 0.02% from the previous week, continuing the downward trend for two weeks in a row. Gwanak-gu stopped rising for three weeks in a row and Geumcheon-gu remained flat (0.00%) for two weeks.

The apartment market in the metropolitan area, where house prices soared this year, is also rapidly cooling down. Apartment prices in Siheung, Gyeonggi-do, which rose 37.26% this year (as of the 27th), fell 0.04% from last week. Gwangmyeong-si, Gyeonggi-do (-0.01%), Sujeong-gu, Seongnam-si (-0.02%), and Dongan-gu, Anyang-si (-0.01%) also turned downward.

An official from an authorized real estate agency in Siheung city said, “As the number of multi-family homes increased, the asking price for a 30 pyeong unit fell from 900 million won to 600 million to 700 million won.” Even in regions where unsold homes are increasing, regions that have turned downward are coming out one after another. Apartment prices in Suseong-gu, Daegu (-0.02%), Yuseong-gu, Daejeon (-0.03%), Dong-gu, Busan (-0.07%) and Gangseo-gu (-0.02%) turned downward.

Jeonse prices also slowed in the metropolitan area including Seoul. Jeonse prices for apartments in Seoul declined from 0.06% last week to 0.04%. Seongbuk-gu, Seoul, where the Jeonse price turned down for the first time in two and a half years last week, also fell by 0.01% this week. Jeonse prices for apartments in Gyeonggi also turned to a downward trend due to an increase in new tenants in Uiwang-si (-0.16%), Gwacheon-si (-0.06%), Yongin-si Giheung-gu (-0.05%), and Seongnam-si Sujeong-gu (-0.03%).

○ “The gap in house prices by region will widen”Experts believe that the decline in house prices may be noticeable in rural areas or areas outside the metropolitan area as the transaction cliff continues for the time being. Koh Jun-seok, an adjunct professor at Dongguk University's Graduate School of Law, said, "The downtrend may be greater in regions with sufficient supply compared to demand.

However, there are many forecasts that it will not be easy for house prices in Seoul to fall in earnest as housing prices are still in short supply. Woo Byung-tak, head of Shinhan Bank's Real Estate Investment Advisory Center, said, "The number of apartment occupants in Seoul next year is too short."