Since the inauguration of the Lee Jaemyung administration, there has been a surge in areas surpassing the previous price peaks set during the Moon Jae-in administration (2017-2022). Starting in Seoul, this trend of breaking record-high housing prices is spreading to key locations in the greater metropolitan area and even some small- and medium-sized provincial cities.

According to an analysis on October 9 of the Korea Real Estate Board’s apartment sale price index, 11 districts in Seoul have all exceeded their previous peaks from the Moon administration era. These districts are Gangnam, Seocho, Songpa, Yongsan, Seongdong, Mapo, Gwangjin, Yangcheon, Gangdong, Yeongdeungpo, and Dongjak. The sale price index quantifies the rate of price change compared to a reference point, which is set as 100 as of March 31 this year.

By district, Seongdong saw its index jump from the January 2022 peak of 93.88 to 110.26 in the fifth week of September this year, a 17.45% increase. Songpa rose from a January 2022 peak of 93.99 to 109.70, up 16.71%. Seocho increased by 17.58%, from a peak of 91.56 in August 2022 to 107.66, while Gangnam climbed 13.83%, from 94.04 in June 2022 to 107.05.

Yongsan rose 9.15%, from a peak of 97.81 in June 2022 to 106.76, and Mapo increased 6.68%, from 101.29 in January 2022 to 108.06. Gangdong (102.75→106.43, +3.58%), Gwangjin (101.38→106.21, +4.76%), Yangcheon (100.73→106.46, +5.69%), Yeongdeungpo (102.94→105.44, +2.43%), and Dongjak (103.49→104.98, +1.44%) also surpassed their previous highs.

As a result, 10 out of 11 districts adjacent to the Hangang River have exceeded their previous peaks. Among the Hangang-adjacent districts, Gangseo is the only one that has not surpassed its previous high. Gangseo’s current sale price index stands at 102.30, which is 7.9% below its previous peak of 111.09 in January 2022.

Seongdong and Yongsan Lead Acceleration in Breaking Previous Highs Along the Hangang Belt
11 Areas Reach New Highs... Seoul Overall Has Not Yet Surpassed Previous Peaks

Gwacheon and Bundang Also Surpass Previous Highs... Spread Across the Entire Seoul Metropolitan Area
"Additional Regulations Possible Due to Overheating in the Hangang Belt"

Most of the Hangang Belt Has Surpassed Apartment Price Highs Set During the Moon Jae-in Administration. Photo by Yonhap News

The overall sale price index for Seoul is 104.47, just below the peak of 104.63 set on January 17, 2022, during the Moon administration. This is due to the slow recovery in outlying areas such as the so-called “Nodogang” (Nowon, Dobong, Gangbuk) and “Geumgwang” (Geumcheon, Guro, Gwanak) districts, which is dragging down the average. In these areas, apartment prices still lag more than 10% behind their previous peaks.

In Gyeonggi Province, Gwacheon and Bundang District in Seongnam have surpassed their previous highs. Gwacheon rose 6.61%, from 102.17 in January 2022 to 108.92 in the fifth week of September this year, while Bundang climbed 6.32%, from 102.96 in June 2022 to 109.47.

In the provinces, a total of eight areas have surpassed their previous peaks. Sangju in North Gyeongsang Province recorded the highest growth nationwide, jumping 20.71% from a peak of 85.41 in December 2021 to 103.10 this year. Yeongju (90.35→102.61, +13.57%) and Mungyeong (92.73→103.74, +11.87%) also saw double-digit increases. Donghae in Gangwon Province (93.71→100.24, +6.97%) and Nonsan in South Chungcheong Province (95.99→101.08, +5.30%) also set new highs. Wansan District (102.06→102.22, +0.16%) and Deokjin District (101.98→102.36, +0.37%) in Jeonju, North Jeolla Province, and Jecheon in North Chungcheong Province (100.17→100.36, +0.19%) saw modest but record-breaking increases.

The rebound in the provinces is primarily due to a lack of supply. Sangju has had no new housing supply for four consecutive years since 2022, and Jeonju, with a population of 600,000, will see only 277 new units this year, effectively creating a supply vacuum. In inland cities in North Gyeongsang Province, the opening of new railways such as the Jungbunaeryuk Line and Jungang Line has further fueled the upward trend.

Ham Youngjin, head of the Real Estate Research Lab at Woori Bank, stated, “Recently, districts with a high proportion of new record-high transactions include Seongdong, Gwangjin, Gangdong, and Mapo, indicating that buyer sentiment is increasingly concentrated along the Hangang Belt. As overheating intensifies in areas adjacent to the Hangang River, there is growing speculation about the possibility of additional regulations in the future.” He added that such regulations are likely after the Chuseok holiday.

On the other hand, the rise in some provincial areas remains questionable. Yang Jiyeong, a senior consultant at Shinhan Premier Pathfinder, commented, “The provincial market is driven by real demand, and if government policy fails to support this, it may be difficult for the upward trend to continue in the long term. Improvements in residential conditions and effective housing policies for the provinces will be needed for the upward trend to be sustained.”

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