Gangnam and Seocho apartment prices fall for 13 consecutive weeks... Gaepo-dong apartment drops 600 million won in three weeks

[Financial News] Seoul apartment prices have risen for 91 consecutive weeks, while prices in Gangnam and Seocho have fallen for 13 consecutive weeks.
According to the Korea Real Estate Board's weekly apartment price trends released on the 5th, Seoul's apartment sale price index stood at 0.07% in the first week of November (as of the 2nd). That was down 0.02 percentage points from 0.09% the previous week.
While outlying Seoul districts such as Seodaemun and Dongdaemun have driven price gains, Gangnam's three districts are drawing attention. Declines widened in Gangnam District (-0.39%) and Seocho District (-0.37%) for a second consecutive week. In particular, Seocho's cumulative gain for the year turned negative, following Gangnam's. Songpa District (-0.17%) saw its decline narrow from the previous week, but prices there continued to fall. The declines in key areas including Apgujeong-dong, Gaepo-dong, Banpo-dong and Jamwon-dong are notable. Districts south of the Han River have seen gains slow for three consecutive weeks, as prices turned down starting the previous week.
Experts attributed the declines in Gangnam and Seocho, which began in August, to a range of factors. They said the Aug. 3 tax reform plan was expected to increase the tax burden, while interest rate hikes and other factors placed significant pressure on Gangnam and Seocho, where home prices are relatively high. They also judged that these factors contributed to the slowdown in gains in Seoul's outlying districts.
In fact, declines in actual transaction prices were also recorded in Gangnam's three districts (Gangnam, Seocho and Songpa).
The actual transaction price of a 49m2 unit in Seongwon Daechi Complex 2 in Gaepo-dong, Gangnam District, was 2.025 billion won in early October, but fell by more than 600 million won to 1.4 billion won on October 29. A 152m2 unit at Shin Hyundai Apartment Complex 9 in Apgujeong-dong also fell by 600 million won, from 7.5 billion won in September to 6.9 billion won in October. A 165m2 unit at Banpo Xi in Banpo-dong, Seocho District, went from 6.4 billion won in September to 6 billion won in October, while an 84m2 unit at Jamsil LLL's in Songpa District fell from 3.37 billion won on October 1 to 3.1 billion won in about two weeks. However, some analyses suggest that differences in floor levels between the units in each transaction may have contributed to the price declines.

[email protected] Jeong Gyeong-su Reporter