2024.03 Comprehensive housing price index
2024.03 Monthly Sales Price Index
Note
The comprehensive housing sales price index maintained a downward trend in all regions except Seoul. However, the decline narrowed across the country (-0.14% → -0.12%), the metropolitan area (-0.15% → -0.11%), the five major metropolitan cities (-0.23% → -0.22%), and local areas (-0.14% → -0.13%). It has been done. Seoul changed to flat from -0.09% to 0.00%. While there was a mixed trend of rise and fall by region and complex depending on settlement conditions, the rise was centered on preferred complexes and large complexes, leading to a reduction in the decline in the sales price index and a conversion to a flat rate.
Seoul (-0.09%) rose to the level of areas with good settlement conditions, mainly Yongsan-gu (0.08%) and Gwangjin-gu (0.07%) in Gangbuk. Gangnam showed a downward trend mainly due to construction, but it rose mainly in Jamsil-dong, Sincheon-dong major complexes, and Ogeum-dong in Songpa-gu (0.14%), which turned into a flat trend. While the metropolitan area also showed a mixed trend of rising and falling, Jung-gu in Incheon (0.13%), Deogyang-gu in Goyang-si (0.25%), and Cheoin-gu in Yongin-si (0.17%) rose, which had an impact on reducing the decline.
2024.03 Monthly Jeonse Price Index
Note
While the sales price index fell for three consecutive months, the jeonse price index rose for eight consecutive months since August of last year. Compared to last month, the rising areas (97 → 108) increased, and the falling areas (78 → 67) decreased, increasing the increase by 0.02% compared to last month. The trend is mixed by region, with regions with good transportation and residential conditions continuing to lead the upward trend. However, in the case of local areas, it still appears to be on the decline due to the influence of new move-ins.
In Seoul (0.19%), the rise was mainly in Nowon-gu (0.57%), Seongdong-gu (0.55%), and Yongsan-gu (0.3%), while in Gyeonggi, Suwon Yeongtong (0.76%), Gwangmyeong (0.72%), Seongnam Jungwon (0.5%), and Goyang It rose mainly in Ilsan Seo-gu (0.49%). In Incheon, Yeonsu-gu (0.69%), Jung-gu (0.58%), and Michuhol-gu (0.46%) rose mainly, continuing interest in areas with good transportation and settlement conditions. However, Daegu (-0.44%) is mainly in Dalseong-gun (-0.98%) and Suseong-gu (-0.57%), and Gyeongnam (-0.15%) is mainly in Changwon (-0.21%) and Geoje-si (-0.59%) due to the impact on the volume of new tenants. It fell and affected the overall decline.
2024.03 Monthly Rent Price Index
Note
The monthly rent price index also increased by 0.09% compared to the previous month, continuing an upward trend for 8 consecutive months. However, compared to the previous month (-0.10%), the increase decreased slightly. In Seoul, the increase expanded, but in the metropolitan area, the increase was maintained, and in rural areas, the increase decreased. The monthly rent price index also rose mainly in areas near train stations and major complexes with good residential conditions.
Seoul (0.15%) rose mainly in major complexes in Yongsan-gu (0.33%), Nowon-gu (0.30%), and Seongdong-gu (0.28%), while Gyeonggi (0.16%) increased in Goyang Deokyang-gu (0.31%), Ilsanseo-gu (0.45%), and Suwon. It rose mainly in Yeongtong-gu (0.23%). Daejeon (0.23%) rose mainly in the large areas near the station in Dong-gu (0.32%), and Jeonbuk (0.16%) rose mainly in Deokjin-gu in Jeonju. Gwangju led the upward trend with continued rental demand, mainly in major complexes in Nam-gu (0.15%) and Gwangsan-gu (0.01%). There are also predictions that the continued rise in jeonse and monthly rent prices may affect sales prices. If the rental price becomes higher than the affordable level, purchase demand will increase and the sales price index can be expected to rise.
However, as high interest rates continue, further interest rate cuts are delayed, expectations for the extent of interest rate cuts are lowered, and it is predicted that this may have an impact on extending the wait-and-see policy. In that case, the current flat and downward trend is expected to continue a little longer, and transactions will continue to be centered on areas with good residential conditions in Seoul and the metropolitan area and in large complexes, and regional areas are expected to have a significant impact.
2024.03 Office Price Index
Note
In the first quarter of 2024, offices showed an overall stable rental demand, while Seoul showed a low vacancy rate of less than 6%. Amid a sluggish housing market due to high interest rates, the office market showed a low vacancy rate based on steady demand. Due to a lack of new supply and the increase in office attendance after the coronavirus pandemic, the vacancy rate continues to be at the level of the natural vacancy rate. CBD, a traditional office district, maintained stable rental demand, decreasing by 2.5% compared to the previous year. YBD's vacancy rate has also been steadily decreasing since the large-scale vacancies were resolved. In the case of GBD, there are vacancies for large tenants, but the increase in vacancy rate decreased (0.9 → 0.6) compared to the previous quarter due to steady small-scale rentals. In the first quarter of 2024, the office rental price index showed an increase in all regions. The rental price index is an indicator of the trend of rent fluctuations, and in the case of offices, it increased by 0.93% compared to the previous quarter and by 1.87% compared to the previous year. In the case of Seoul, there was an increase of 1.33% compared to the previous quarter, with increases in Gangnam-daero (2.08%), Teheran-ro (2.02%), and Gwanghwamun (1.87%), which played a role in the increase in the rental price index. Even though there is a lot of demand from the IT industry and other areas with high preference in the CBD and GBD, the continued low level of vacancy rate due to lack of new supply seems to have had an effect on the increase in the overall rental price index.
