President Kim Hak-kyu of Korea Appraisal Board (KAB) (Photo: KAB)

An apartment price uptrend in the Seoul metropolitan area slowed down in January in the wake of the government’s steps to cool down real estate prices, but jeonse prices were on the rise as transaction demand shifted to standby demand.

A survey of home prices across the nation in January, conducted by Korea Appraisal Board (KAB) and announced on Feb. 2, showed that apartment price momentum faltered, but jeonse prices rose, influenced by transaction demand’s shift into stand-by demand.

According to the outcomes of the survey, house transaction prices rose 0.28 percent across the nation from a 0.22 percent increase from the previous month.

In particular, growth declined from a 0.62 percent rise to 0.39 percent increase in the Seoul metropolitan area, but growth dropped from a 0.86 percent increase to a 0.43 percent rise in Seoul. On the other hand, growth expanded from a 0.16 percent increase to 0.17 percent rise overall in provincial areas.

The comparable figure declined from 0. 46 percent to 0.39 percent in five metropolitan cities, from 0.04 percent to 0.02 percent in eight provinces, but growth expanded from a 0.83 percent rise to 0.84 percent.

 
In Seoul, house transaction demand plunged in the wake of the government’s steps to stabilize the real estate market, so transaction growth narrowed in 24 wards out of the total 25.

Gyeonggi-do and Incheon showed differences according to each district. Favorable factors for redevelopment, transformation and demand for commuting to Seoul led to growth, but with narrower margins.

Mapo-gu showed 0.41 percent growth on the back of demand for large-scale development projects surrounding subways in the Gongdeok and Ahyeon area and the ongoing renewal undertaking.

Nowon-gu logged a growth rate of 0.39 percent with a focus on units near Kwangwoon University Station whose development is anticipated and low- and medium-priced units.

Dongdaemun-gu recorded a 0.32 percent rise partly due to an increase to offset lower-than-expected growth gap.

KAB said home jeonse prices jumped 0.28 percent in January across the nation from a 0.22 percent rise in the previous month. In particular, the Seoul metropolitan area saw jeonse price growth increase from 0.37 percent to 0.39 percent.

Seoul also saw the comparable figure rise from 0.38 percent to 0.43 percent. Rural areas saw jeonse price growth shoot up from 0.08 percent to 0.17 percent. Five metropolitan cities saw jeonse price growth increase from 0.21 percent to 0.31 percent.

Eight provinces saw the figure rise from a minus 0.03 percent growth to 0.02 percent. In Sejong City, the figure rose from 1.16 percent to 2.88 percent.

In Seoul, jeonse price growth jumped to 0.45 percent from 0.38 percent in the previous month. KAB said the rise was owed to the restructuring of educational systems and rising demand with a focus on school zones and areas near subways.

In Gangbuk, Seoul, jeonse price rise occurred with a focus on rising tenant demand in the Gongdeok and Ahyeon area, major school zones in Junggae and Hagaeng-dong area in Nowon-gu in which the figure stood at 0.3 percent, and districts near subways in Sangwangsimni and Haedang-dong in Seongdong-gu in which jeonse prices rose 0.30 percent.

In the Gangnam area, the comparable figure logged 1.54 percent in Ganganm-gu, 0.92 percent in Seocho-gu, 0.80 percent in Songpa-gu, and 0.98 percent in Yangcheon-gu. Units for jeonse were in short supply in major school zones.

In Dongjak-gu and Gangseo-gu, jeonse prices shot up 0.61 percent and 0.46 percent, respectively, due to rising demand with a focus on apartment complexes near subways.