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Seoul apartment prices turn downward in two months

Posted June. 03, 2022 07:40,   

Updated June. 03, 2022 07:40


Prices of apartment units in Seoul have started decreasing in two months. This may have resulted from transactions made at a lower price around the Gangbuk area or the northern part of the capital before June 1, based on which possession tax is imposed on property.

According to weekly trends in apartment transactions during the 5th week of May announced by the Korea Real Estate Board, prices of apartment units in Seoul went down by 0.01 percent compared to the previous week. The decrease was seen for the first time in two months since prices declined by 0.01 percent on a week-on-week basis on March 28.

The Gangbuk area of Seoul including Nowon District (-0.03 percent), Dobong District (-0.02 percent) and Gangbuk District (-0.02 percent) descended in prices. Seocho District and Gangnam District alike rose by 0.01 percent, slightly slowing down compared to the previous week. Prices of luxury residences rose in Yongsan District (0.03 percent) where expectations are high for development projects.

The first-generation new towns including Ilsanseo District (0.11 percent) and Ilsandong District (0.09 percent) in Goyang City and Bundang District in Seongnam City rose in apartment prices as many expect less regulation on reconstruction projects. By contrast, prices stayed on the downward trajectory in Siheung City (-0.15 percent), Uiwang City (-0.12 percent), Hwaseong City (-0.09 percent) and Yeongtong District in Suwon City (-0.11 percent) with sellers outnumbering buyers on the market.

“Amid the weak buyer sentiment suppressed by increases in the key interest rate, multi home owners made a rush to sell some units in the runup to June 1, as of which the government levies possession tax, putting a downward pressure on the market,” said Koh Jun-seok, CEO of JEdu Investment Advisory.