Busan apartment buying and selling prices stagnate, full rental prices continue to rise

With the government implementing multiple policies to regulate multiple property owners, the upward momentum of apartment prices in Busan has stalled. Previously, the continuous rise in Busan apartment prices has maintained an upward trend for 17 consecutive weeks since the fourth week of October last year, but recently, the rate of increase has begun to slow down.

According to the apartment price trends released by the Korea Real Estate Board for the fourth week of February, the weekly apartment transaction prices in Busan increased by 0.03% compared to the previous week. This is the same increase as the 0.04% in the second week of February and the 0.03% in the third week, maintaining a steady growth rate. The increase in Suyeong District narrowed sharply from 0.23% in the third week to 0.07% this week, and the growth rate in Haeundae District also showed a slight slowdown.

In contrast, the full rental prices in Busan continue to rise. The upward trend has persisted for 19 months and extended into the fourth week of February, with the increase in full rental prices gradually expanding. Demand for full rentals is more concentrated in certain areas, leading to a significant rise in rental prices. This is believed to be a result of shrinking home-buying psychology, which has increased demand for rentals.

Experts analyze that this market change is driven by government policies causing a slowdown in home-buying psychology, and this trend is expected to continue until around the June local elections. Meanwhile, the shortage of housing supply is expected to keep pushing up full rental prices in the short term. Especially with the added spring moving demand, there is a high likelihood of accelerated rental price increases. Some forecasts also suggest that a decrease in new housing supply in the second quarter may worsen the rental shortage.