Real estate market likely to bottom out as home price declines stop nationwide

[Photo by Yonhap]

The previously declining home prices in all districts of Seoul have stabilized, leading to a positive atmosphere not only in the capital region but also in other parts of the country. Apartment prices nationwide are showing signs of an upward trend, while there is a noticeable increase in property transactions with rising demand for well-favored properties or those with positive factors for future price increases.

According to the Korea Real Estate Board on Thursday, the apartment price index for the first week of August in Seoul rose by 0.09 percent, mirroring the previous week’s increase of 0.09 percent. However, the cumulative year-to-date change rate stands at -3.59 percent.

Breaking the market down by district, positive trends were observed in 23 districts including Dobong-gu (0.02 percent), Guro-gu (0.03 percent), Gangbuk and Geumcheon-gu (0.04 percent), Seodaemun and Jongno-gu (0.05 percent), Gangseo-gu (0.06 percent), Gwangjin, Jungnang, Seongbuk, Eunpyeong, and Seocho-gu (0.07 percent), Jung-gu (0.08 percent), Yeongdeungpo and Gwanak-gu (0.09 percent), Yangcheon-gu (0.10 percent), Gangnam-gu (0.11 percent), Gangdong-gu (0.12 percent), Yongsan-gu (0.14 percent), Dongdaemun and Mapo-gu (0.15 percent), Seongdong-gu (0.22 percent), and Songpa-gu (0.23 percent). Only two districts - Nowon and Dongjak remained unchanged.

According to the Ministry of Land, Infrastructure and Transport’s Real Transaction Price Disclosure System, an Eunma Apartment unit of 84 square meters in Gangnam District’s Daechi-dong, changed hands at 2.64 billion won on July 20, marking a 500 million increase from its first transaction this year. Similarly, a Parkrio unit of 84 square meters in Songpa District’s Sincheon-dong, was sold for 2.18 billion won last month, up 430 million won from its first transaction this year at 1.72 billion won.

In Seoul’s Gangseo District, a unit of the “Magok M-Valley Complex 9” measuring 84 square meters was sold for 1.23 billion won on August 1. recovering into the 1.2 billion won range. In Songpa District’s Garak-dong, a 110 square meter unit in “Heliocity” was put under contract at 2.6 billion won, also rebounding into the 2.6 billion won range.

Nationwide, the apartment transaction price index rose by 0.04 percent, indicating a widened increase from last week’s 0.03 percent growth. Out of the 176 cities, counties and districts nationwide, 84 locations saw increased housing prices while 76 experienced decreases. Gyeonggi Province (from 0.08 percent to 0.09 percent) and Incheon (from 0.07 percent to 0.08 percent) both posted consecutive gains. Sejong City (from 0.16 percent to 0.10 percent) recorded its 21st consecutive weekly increase.