Even Private Aggregations Show... Apartment Prices in Gangnam 3 Districts Turn Downward

Gangnam, Seocho, and Songpa Districts Turned Downward After About 8 Months Since June Last Year
"Measures to Strengthen Transaction Transparency Will Further Weaken Buying Demand in Gangnam Area"
Impact of Waiting Demand for Subscription... Jeonse Prices Continue to Rise

[Asia Economy Reporter Yuri Kim] The rate of increase in Seoul apartment prices has slowed down. This is due to the announcement of the December 16 real estate measures, which strengthened transaction verification such as funding plans and announced high-intensity investigations into illegal transactions. In particular, the 'Gangnam 3 districts (Gangnam, Seocho, Songpa)', which had been on the rise since June last year (April for Gangnam-gu), turned to a decline this week. Major reconstruction complexes such as Jamsil Jugong 5 Complex in Songpa and Eunma in Gangnam fell, and large apartment complexes like Acro River Park and Banpo Xi in Seocho were adjusted downward, causing apartment prices in the Gangnam 3 districts to fall simultaneously.

According to Real Estate 114 on the 7th, Seoul apartment prices rose by 0.04% this week, continuing the trend of slowing growth. Reconstruction apartments fell by 0.1%, while general apartments rose by 0.06%. New towns and Gyeonggi/Incheon rose by 0.02% and 0.01%, respectively.

The Seoul apartment market saw price increases mainly in non-Gangnam areas such as Dobong, Gangbuk, Guro, and Geumcheon, where some mid-to-low priced properties were traded. On the other hand, in the Gangnam 3 districts, buying demand further contracted, and major reconstruction apartments and large complexes that had seen significant price increases showed declines. By region, Dobong (0.19%), Gangbuk (0.16%), Guro (0.16%), Geumcheon (0.16%), Seongbuk (0.14%), Gangdong (0.12%), Dongdaemun (0.12%), and Seodaemun (0.12%) rose. In Dobong, Chang-dong Sanggye Jugong 17-19 complexes, Ssangmun-dong Dongik Park, and Banghak-dong Byeoksan 1st complex rose by 2.5 million to 25 million KRW. In Gangbuk, Mia-dong Doosan We've Trizium and Beon-dong Jugong 1st complex rose by 5 million to 20 million KRW. Conversely, in Songpa, Jamsil-dong Jugong 5 complex, Sincheon-dong Jamsil Parkrio, and Munjeong-dong Olympic Family Town fell by 5 million to 25 million KRW. In Gangnam, Daechi-dong Eunma and Hanbo Midomanseon 1st and 2nd complexes fell by 5 million to 75 million KRW. In Seocho, Banpo-dong Acro River Park Banpo and Banpo Xi fell by 25 million to 50 million KRW.

New towns rose in the order of Ilsan (0.05%), Pyeongchon (0.04%), Bundang (0.02%), Sanbon (0.02%), Dongtan (0.02%), and Jungdong (0.01%). In Ilsan, mid-to-large sized units in Baekseok-dong Ilsan Yojin Y City rose by 35 million KRW, and Juyop-dong Munchon 13th complex Daewoo and Munchon 8th complex Donga rose by 2.5 million to 5 million KRW. In Pyeongchon, Mugunghwa Gyeongnam, Mugunghwa Kumho, and Mokryeon Seongyeong 1st complexes in Hogye-dong rose by 5 million to 10 million KRW.

In Gyeonggi and Incheon, the upward trend continued in Yongin and Suwon, which are recognized as undervalued areas, along with transportation benefits. By region, Yongin (0.05%), Suwon (0.05%), Incheon (0.05%), Gwangmyeong (0.04%), Uiwang (0.04%), Bucheon (0.03%), and Anyang (0.03%) rose. Meanwhile, Icheon (0.02%), where apartment supply is steady, saw a slight decline.

The jeonse (lease) market continued to rise as jeonse supply was insufficient mainly in Seoul, with preference for jeonse increasing due to waiting demand for subscription and contraction in sales transactions. Seoul rose by 0.05%, while new towns and Gyeonggi/Incheon rose by 0.03% and 0.01%, respectively.

The Seoul jeonse market rose evenly across all areas due to a shortage of jeonse supply after the winter vacation moving demand ended. By region, Geumcheon (0.18%), Seongbuk (0.10%), Gangbuk (0.09%), Gangnam (0.08%), Gangseo (0.08%), Mapo (0.06%), Seocho (0.06%), and Eunpyeong (0.06%) rose. In Geumcheon, Samik, Shindobrenyu in Doksan-dong, and Nam Seoul Hillstate in Siheung-dong rose by 5 million to 12.5 million KRW. In Seongbuk, Raemian Anam in Anam-dong 1-ga, Brownstone Dongseon in Dongsomun-dong 7-ga, Wolgok Raemian Luna Valley in Hawolgok-dong, and Jongam 2nd SK View in Jongam-dong rose by 10 million KRW.

New towns rose in the order of Ilsan (0.05%), Pyeongchon (0.05%), Bundang (0.04%), and Sanbon (0.04%). In Ilsan, Munchon 8th complex Donga and Munchon 15th complex Booyoung in Juyop-dong rose by 5 million to 10 million KRW. In Pyeongchon, Mugunghwa Gyeongnam, Mugunghwa Kumho, and Mugunghwa Hyosung in Hogye-dong rose by 5 million to 10 million KRW. In Bundang, Sibeom Samsung and Hanshin in Seohyeon-dong, and Jangmi Hyundai in Yatap-dong rose by 10 million KRW.

In Gyeonggi and Incheon, mainly in the southern Gyeonggi area, Suwon (0.04%), Uiwang (0.04%), Bucheon (0.03%), Seongnam (0.03%), Incheon (0.02%), and Anyang (0.02%) rose. In Suwon, Bidanmaeul Hyundai Seongwoo in Cheoncheon-dong, Woobang, and Yeongnam, Woobang, Hansol in Jeongja-dong, and Yeongtong Hanyang Sujain Edupark in Mangpo-dong rose by 5 million to 10 million KRW. In Uiwang, Human Sia Cheonggye Village 4th complex in Cheonggye-dong rose by 5 million to 10 million KRW.

Lim Byung-chul, senior researcher at Real Estate 114, said, "From next month, submission of documents for transaction verification such as funding plans will be strengthened, further dampening buying sentiment in the Gangnam area," and added, "The upward trend in the outskirts of Seoul, where mid-to-low priced buying demand continues, and some rapidly rising areas in Gyeonggi will gradually calm down."

Meanwhile, the metropolitan area jeonse market continues to rise mainly in Seoul due to increased jeonse demand instead of sales amid transaction contraction and persistent waiting demand for subscription. Senior researcher Lim said, "If concerns about jeonse price instability due to jeonse supply shortage continue, spring moving demand may move quickly, which could act as another factor causing jeonse shortages and rapid jeonse price increases."

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