Seoul Apartments Show Different Trends in Sale and Jeonse... 'Slowing Rise' vs 'Expanding Rise'

Seoul Sale Prices Rise for 5 Consecutive Weeks with Slowing Growth
Jeonse Prices Increase More Due to Shortage of Listings

[Asia Economy Reporter Yuri Kim] The Seoul apartment sales market maintained stability even after the holiday period. The rate of increase significantly slowed, especially in the Gangnam 4 districts (Gangnam, Seocho, Songpa, Gangdong), where high-priced homes are concentrated, and the reconstruction market fluctuated between declines and stability, signaling an imminent shift to a weaker trend. Meanwhile, the jeonse (long-term lease) market showed greater price volatility, with increases surpassing those in sales prices. Due to the reform of the subscription system, the demand for living in prime areas such as Seoul for more than two years has increased, making it generally difficult to find desired jeonse properties.

According to Real Estate 114 on the 31st, the weekly change rate of Seoul apartment prices recorded a slight slowdown to 0.05%, compared to 0.06% the previous week. While reconstruction prices remained stable with limited movement, general apartments rose by 0.06%. New towns increased by 0.01%, and Gyeonggi/Incheon rose by 0.01%.

In Seoul, the upward trend was prominent in non-Gangnam areas even after the Lunar New Year holiday. Prices rose in the following order: Guro (0.22%), Nowon (0.16%), Dobong (0.13%), Seongbuk (0.13%), Gwanak (0.10%), Seodaemun (0.09%), Jungnang (0.09%), Gangseo (0.08%), and Yangcheon (0.06%). Guro saw steady buying inquiries due to perceptions of undervaluation despite relatively smaller increases. In Daerim 1st complex in Sindorim-dong, prices rose by 5 to 15 million KRW, and in Hang-dong, Seoul Sumokwon Hyundai Hometown Suites increased by 5 to 10 million KRW. In Nowon, Miryung, Miseong, and Samho 3rd complexes in Wolgye-dong rose by 10 to 20 million KRW, and Hanshin Cheonggu in Hagye-dong increased by 5 million KRW. Dobong saw increases of 2.5 to 15 million KRW in Chang-dong Sanggye Jugong 18th complex and Bukhansan IPARK.

In new towns, except for some areas such as Pyeongchon (0.06%), Pangyo (0.06%), and Dongtan (0.02%), prices remained stable. Demand was sluggish due to the holiday season. In Pyeongchon, prices rose by 5 to 10 million KRW in Choweon Daewon, Choweon Daerim, and Choweon 5th LG complexes. In Pangyo, Pangyowon Village 9th complex in Pangyo-dong increased by 10 million KRW. In Dongtan, prices rose by 5 to 7.5 million KRW in Cheonggye-dong Sibeom Gyeryong Risuville, Sibeom Yemiji, and Sibeom Bando Yubora Ivy Park 1st complexes.

In Gyeonggi and Incheon, prices rose in the order of Uiwang (0.04%), Suwon (0.03%), Incheon (0.02%), Goyang (0.02%), Gwangmyeong (0.02%), and Guri (0.02%). In Uiwang, Mugunghwa Seongyeong in Ojeon-dong and Poil Xi in Naeson-dong increased by 5 million KRW. In Suwon, the extension of the Shinbundang Line boosted prices in Hwaseo-dong. Hwaseo-dong’s Kkotmoe Yangji Village Hyundai, Hwaseo Jugong 4th complex, and Hanjin Hyundai rose by 2.5 to 10 million KRW. In Incheon, Cheongra Hanla Vivaldi in Cheongra-dong, Bugae Station Prugio in Bugae-dong, and Yeongjong Sky City Umirin 2nd complex in Jungsan-dong increased by 5 million KRW.

The jeonse market showed an unstable pattern with expanding price increases centered on Seoul. Seoul apartment jeonse prices rose by 0.07%, increasing from 0.03% the previous week. New towns and Gyeonggi/Incheon rose by 0.02% and 0.01%, respectively.

In Seoul’s jeonse market, prices rose regardless of Gangnam or non-Gangnam areas. The increases were in the order of Mapo (0.24%), Seodaemun (0.23%), Seocho (0.12%), Songpa (0.12%), Guro (0.11%), Jung-gu (0.10%), Seongbuk (0.08%), and Gangseo (0.07%). Overall, jeonse supply is insufficient compared to demand. In Mapo, Mapo Raemian Prugio in Ahyeon-dong and Samsung Raemian in Yeomni-dong rose by 10 to 25 million KRW. In Seodaemun, e-Pyeonhansesang Sinchon in Bukahyeon-dong and Hanyang in Hongje-dong increased by 10 to 15 million KRW. In Seocho, Raemian Banpo Prestige in Banpo-dong and Seocho Foresta 7th complex in Sinwon-dong rose by 15 to 25 million KRW.

In new towns, prices rose in Bundang (0.04%), Ilsan (0.04%), Pyeongchon (0.04%), Gimpo Hangang (0.02%), and Dongtan (0.01%). In Bundang, Mujigae LG, Mujigae Cheonggu, and Mujigae Jugong 4th complex in Gumi-dong rose by 5 million KRW. In Ilsan, Gangseon 14th Doosan in Juyeop-dong, Hwindol 2nd Cheonggu in Baekseok-dong, and Hugok 2nd Dongyang and Daechang in Ilsan-dong rose by 2.5 to 10 million KRW. In Pyeongchon, Gongjak Booyoung in Gwanyang-dong increased by 5 million KRW.

In Gyeonggi and Incheon, except for Suwon where sales prices rose rapidly due to the Shinbundang Line development, jeonse prices remained generally quiet. Prices rose in Suwon (0.06%), Incheon (0.02%), Goyang (0.02%), Seongnam (0.01%), Anyang (0.01%), and Yongin (0.01%).

Since the announcement of the December 16 measures, sales prices have stabilized. Due to the temporary exemption period for the capital gains tax surcharge, properties intended for sale in the first half of this year are gradually appearing on the market. With weakened buyer sentiment, the leading indicator of the reconstruction market is also nearing a shift to a weaker trend. Yoon Ji-hae, chief researcher at Real Estate 114, said, "While liquidity (loans) is blocked mainly in the Gangnam area, causing some balloon effect movement in non-Gangnam areas, the momentum is not strong enough to lead the overall upward trend in Seoul. The cautious behavior of demanders is expected to continue into February." She also noted that with increased demand compared to the past and a shortage of prime jeonse properties in the market, the possibility of further expansion in jeonse price increases is high.

This content was produced with the assistance of AI translation services.