Seoul sees first apartment price decreases of the year

A view of apartments in Seoul from the 63 Square in Yeouido, western Seoul [YONHAP]

Eunpyeong District in northern Seoul this week became the first place in Seoul this year to see apartment prices start to fall.

According to the Korea Real Estate Board (REB), the average price of apartments in Eunpyeong District fell 0.03 percent on week as of Dec. 20. It is the first district in Seoul to see apartment prices go down this year.

“With many apartments up for sale and selling for low prices, apartment prices in Eunpyeong District fell for the first time in a year and seven months, since May last year,” said a spokesperson for REB.

An 84 square meter (904 square foot) unit in the Raemian Vera Hills apartment, located in Eunpyeong District, sold for 1.27 billion won ($1.1 million) in Nov. 27. That’s down 170 million won, or by 11.8 percent, compared to September last year's sale of the same-size unit.

Overall, apartment prices in Seoul rose 0.05 percent on week, but growth is slowing. The rise is down 0.02 percentage points compared to last week's 0.07 percent increase.

The average price of apartments in Gwanak and Geumcheon District, both in southern Seoul, remained unchanged.

According to REB data received by Rep. Kim Hoi-jae of the ruling Democratic Party, there were 1,146 Seoul apartments bought in November. Among them, 551, or 48.1 percent, sold for prices lower than the previous highest price.

Pricey apartments in Seoul’s affluent neighborhoods are falling. A 72.51 square meter unit in the AID apartment in Seocho District, southern Seoul sold for 3.5 billion won in October, the highest price. But in November, another unit of the same size at the apartment sold for 2.83 billion won, down 19 percent.

A 59 square meter unit in Ssangyong Apartment, Songpa District, southern Seoul sold for 1.47 billion won in October. Another unit with the same dimensions sold for 1.03 billion won in November.

A 119.41 square meter unit in The Sharp Star City, an apartment in Gwangjin District, eastern Seoul, sold for 2 billion won in July. The same sized unit sold for 1.44 billion won in November.

“It is becoming more clear that the real estate market is showing a downwards trend,” said Rep. Kim. “The government needs to focus even more on preventing speculation and illegal actions that can disrupt the real estate market and increase housing supply so that people can be ensured housing stability.”

Apartments in Gyeonggi are also seeing prices fall for the first time in years.

Yeongtong District in Suwon, Gyeonggi, saw apartment prices fall 0.01 percent, the first decrease in two years and five months. Hwaseong, Gyeonggi saw prices fall 0.02 percent, continuing to slip for two weeks in a row.

Apartment prices in Uiwang, Gyeonggi skyrocketed this year due to news that a Great Train Express (GTX) station will be built in the area, but ended a 28-month rise as of Dec. 20. Prices remained the same for the first time since August 2019.

BY HAN EUN-HWA, OH WON-SEOK, LEE TAE-HEE [lee.taehee2@joongang.co.kr]