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An apartment complex in Seocho-gu, Seoul. News 1
Apartment prices nationwide fell for the first time in 27 weeks (6 months). The rise in apartment prices in Seoul is also slowing due to lending regulations.
According to the ‘National Weekly Apartment Price Trends’ announced by the Korea Real Estate Board on the 21st, as of the 18th, the nationwide apartment sales price fell 0.01% from a week ago. It has been 27 weeks since the second week of May that apartment prices nationwide have fallen. National apartment prices recorded an increase of 0.08% in the previous survey (August 26) in September, when loan regulations were in full swing, but the rate of increase slowed down and recorded a flat rate (0.00%) last week before turning downward.
Seoul recorded an increase of 0.06%, the same as last week, continuing its upward trend for the 35th week. After recording an increase of 0.11% in the second week of October, the third week of October (0.09%) → fourth week of October (0.08%) → first week of November (0.07%) → second week of November (0.06%) → this week (0.06) %), etc., a slowdown in the increase was observed for the fourth week.
However, Gyeonggi-do stopped the upward trend by recording a flat rate (0.00%), and Incheon turned downward by falling 0.04%. The metropolitan area rose 0.01%, a decrease in the increase compared to a week ago (0.03%). This can be interpreted as a result of a decrease in buying sentiment due to lending regulations.
By city and province, Daegu (-0.12%), Jeju (-0.05%), Chungnam (-0.05%), Busan (-0.05%), Gyeongbuk (-0.04%), Gangwon (-0.04%), Incheon (-0.04%) The back fell. Among the 178 cities, counties and districts in the announced area, compared to last week, the number of areas with an increase (82 → 76) decreased, and the number of areas with a decrease (85 → 98) increased.
In Seoul, Gangnam (0.15%), Seocho (0.11%), Yongsan (0.11%), and Jongno (0.10%) showed higher growth rates than the average, but Gangbuk (0.01%), Dongjak (0.01%), and Gwangjin (0.02%) %), Dongdaemun (0.02%), and Geumcheon (0.02%) had relatively low growth rates.
The Real Estate Institute explained, “Purchasing inquiries are steady and rising transactions are detected in popular complexes such as reconstruction, near train stations, and new construction, but in other complexes, the spread of wait-and-see taxes and a backlog of listings due to loan regulations are detected.”
National apartment rental prices continued their upward trend, rising 0.03%, but the increase decreased compared to last week (0.04%). In Seoul, rent prices also rose by 0.04% this week, but the increase was smaller than last week (0.05%). The Real Estate Institute explained, “There is a continued shortage of properties for sale, especially in preferred complexes with good residential conditions, but the overall increase has decreased due to increased loan interest rates and large-scale new residents in some areas.”
In particular, as the move-in to ‘Olympic Park Foreon’ in Dunchon-dong, Gangdong-gu, with 12,032 households, approaches the end of this month, it is also affecting rental prices in nearby areas. In Gangdong-gu and Songpa-gu, apartment rental prices fell by 0.02% and 0.05%, respectively, this week.
Reporter Kim Won kim.won@joongang.co.kr
What are the potential long-term implications of government lending regulations on the affordability and accessibility of housing in South Korea, particularly for first-time homebuyers?
## World Today News – Housing Market Update
Welcome to World Today News. Today we’re discussing recent developments in the South Korean housing market. Joining us are two experts: **Dr. Lee** from the Korea Real Estate Institute and **Ms. Choi**, a financial analyst specializing in the property market.
**Section 1: Falling Apartment Prices**
* **Interviewer:** Dr. Lee, the article highlights that nationwide apartment prices have fallen for the first time in 27 weeks. What factors are primarily driving this downturn?
* **Dr. Lee:**
* **Interviewer:** Ms. Choi, we also see a slowdown in Seoul’s price growth, albeit still on an upward trajectory. Do you believe the government’s lending regulations are playing a significant role in tempering this market, particularly in the capital?
* **Ms. Choi:**
**Section 2: Regional Variations**
* **Interviewer:** Dr. Lee, the article mentions that Gyeonggi-do has seen prices stabilize while Incheon has experienced a decline. What might explain these regional differences in price trends within the greater Seoul metropolitan area?
* **Dr. Lee:**
* **Interviewer:** Ms. Choi, the article mentions that areas with popular complexes like those near train stations or undergoing reconstruction continue to see strong demand. Do you think this suggests a shift in buyer preferences within the current market?
* **Ms. Choi:**
**Section 3: Rental Market Dynamics**
* **Interviewer:** Both experts, the article indicates that while rental prices are still rising, the rate of increase is slowing. What factors could be contributing to this moderation, especially with ongoing housing shortages?
* **Dr. Lee:**
* **Interviewer:** Ms. Choi, with large-scale residential developments like Olympic Park Foreon nearing completion, how might such incoming supply impact rental prices in surrounding areas?
* **Ms. Choi:**
**Section 4: Looking Ahead**
* **Interviewer:** both guests, what are your predictions for the future of the South Korean housing market? Do you anticipate further adjustments in prices, and
what advice would you give to potential buyers and renters in this changing landscape?
* **Dr. Lee:**
* **Ms. Choi:**
**Interviewer:** Thank you both for your valuable insights into the current state of the South Korean housing market.
This conversation format encourages diverse perspectives and explores various aspects of the housing market trends highlighted in the article. The open-ended questions invite deeper analysis and stimulate engaging discussion.
