"Reconstruction Slowdown" Seoul Price Increase↓ vs "House Price Matching" Siheung·Bucheon Price Increase↑

[Asia Economy Reporter Kim Yuri] Amid a sluggish transaction market due to successive government real estate market regulations and the spread of the novel coronavirus infection (COVID-19), housing prices in the Seoul metropolitan area showed different trends by region. In Seoul, demand continued for mid-to-low-priced apartments in non-Gangnam areas such as Nowon and Dobong districts, but the price increase slowed as prices of major reconstruction and high-priced apartments in Gangnam and Gangdong districts declined. On the other hand, in Gyeonggi Province, the price increase expanded as some areas such as Siheung and Bucheon, which are not included in the regulated areas, showed a 'price matching' phenomenon.

According to Real Estate 114 on the 6th, apartment sale prices in Seoul rose by 0.05% this week. Reconstruction prices fell by 0.01% due to downward adjustments in Gaepo Jugong in Gangnam-gu and Myeongil Samik Green 2nd in Gangdong-gu. General apartments rose by 0.06%. New towns and Gyeonggi/Incheon rose by 0.04% and 0.14%, respectively, increasing the rate of rise compared to the previous week.

In Seoul, demand flowed mainly to subway station-area apartments in non-Gangnam areas where apartments priced below 900 million KRW are abundant, leading the upward trend. By region, prices rose in the order of Nowon (0.28%), Dobong (0.15%), Dongdaemun (0.15%), Guro (0.13%), Seongbuk (0.12%), Jungnang (0.11%), Geumcheon (0.10%), and Dongjak (0.10%). In Nowon, Sanggye-dong Jugong 2nd complex, Hagye-dong Hanshin Cheonggu, and Wolgye-dong Miryung, Miseong, and Samho 3rd complexes increased by 5 million to 25 million KRW. In Dobong, Chang-dong Sanggye Jugong 17th and 19th complexes and Donga Cheongsol rose by 5 million to 17.5 million KRW. In Guro, Gaebong-dong Hyundai 1st complex, Gaebong Prugio, and Oryu-dong Dongbu Golden increased by 2.5 million to 20 million KRW. On the other hand, new high-priced apartments and reconstruction led the decline, causing Gangnam (-0.01%) and Gangdong (-0.01%) to fall. In Gangnam, Gaepo-dong Jugong 1st, 6th, and 7th complexes and The H Honor Hills fell by 5 million to 25 million KRW. In Gangdong, Godeok-dong Godeok Gracious and Myeongil-dong Samik Green 2nd were adjusted downward by 15 million to 50 million KRW.

In new towns, prices rose in the order of Bundang (0.07%), Dongtan (0.07%), Pyeongchon (0.06%), Gwanggyo (0.06%), Sanbon (0.04%), and Jungdong (0.04%). In Bundang, Hansol Jugong 4th complex in Jeongja-dong, Shibeom Hanyang in Seohyeon-dong, and Imae Hanshin in Imae-dong increased by 5 million to 10 million KRW. In Dongtan, Dongtan 2 Hoban Verdiem The Class in Cheonggye-dong and Neungdong Pureunmaeul Posco The Sharp 2nd complex rose by 2.5 million to 10 million KRW, mainly in medium-to-large sizes. In Pyeongchon, Mugunghwa Geonyeong in Hogye-dong and Mokryeon Woosung 7th complex rose by 5 million to 10 million KRW. In Gwanggyo, the large-scale apartment complex Gwanggyo Sangnok Jaiga in Sanghyeon-dong with 1,035 households rose by 5 million to 10 million KRW. In Sanbon, Gaya 5th Jugong 1st complex and Geumgang Jugong 9th complex 1st phase in Sanbon-dong rose by 5 million KRW, mainly in small sizes.

In Gyeonggi/Incheon, prices rose in the order of Suwon (0.32%), Yongin (0.28%), Seongnam (0.25%), Hanam (0.21%), Uiwang (0.18%), Siheung (0.17%), Anyang (0.17%), Gwangmyeong (0.16%), and Bucheon (0.16%). In Suwon, although inquiries decreased after being designated as a regulated area, housing prices continued to rise due to the Shinbundang Line and redevelopment benefits. Large apartment complexes such as Suwon Gwonseon Xi e-Pyeonhansesang in Gwonseon-dong, Gwonseon SK View, Maetan Jugong 4th and 5th complexes in Maetan-dong, and Maetan We’ve Haneulchae rose by 10 million to 15 million KRW. In Seongnam, Dandae Prugio in Dandae-dong and Samnam in Hadaewon-dong rose by 5 million to 10 million KRW. In Siheung and Bucheon, which are not included in the regulated areas this time, the price increase widened compared to last week. In Siheung, Siheung Baegot SK View in Jeongwang-dong and Wolgot 1st Poonglim I-Won in Wolgot-dong rose by 1.5 million to 10 million KRW, increasing the rise. In Bucheon, Ojeong Saenghwal Human Sia 3rd complex and Jungdong Station Prugio in Songnae-dong rose by 5 million to 15 million KRW.

In the jeonse (long-term lease) market, although moving demand for the new semester has ended and inquiries decreased due to concerns about COVID-19 infection, in popular areas such as those close to workplaces and subway stations, listings became scarcer, continuing a localized upward trend. Seoul rose by 0.05%, and new towns and Gyeonggi/Incheon each rose by 0.03%.

In Seoul, prices rose in the order of Gangseo (0.15%), Dongdaemun (0.15%), Jongno (0.14%), Dongjak (0.12%), Gwanak (0.08%), Yeongdeungpo (0.08%), Gwangjin (0.07%), and Seongbuk (0.07%). In Gangseo, Deungchon-dong Deungchon-dong IPARK, Yeomchang-dong Lotte Castle, and Naebalsan-dong Ujangsan Hillstate rose by 10 million to 25 million KRW. In Dongdaemun, Dapsimni Remian We’ve in Dapsimni-dong and Jang-an Hills State in Jang-an-dong rose by 5 million to 10 million KRW. In Dongjak, Sadang-dong Remian Roy Park and Isu Station Rika, and Sangdo-dong Sangdo Doosan We’ve Trigeum 2nd complex rose by 15 million KRW, mainly in medium-to-large sizes.

In new towns, prices rose in the order of Bundang (0.08%), Ilsan (0.03%), Gwanggyo (0.03%), Pyeongchon (0.02%), and Sanbon (0.01%). Jeonse prices in Gyeonggi/Incheon showed a milder upward trend than the sales market. By region, Uiwang (0.08%), Suwon (0.07%), Bucheon (0.06%), Siheung (0.06%), Anyang (0.06%), Yongin (0.06%), and Hwaseong (0.06%) rose.

This week, the apartment market in the Seoul metropolitan area showed mixed trends. In Seoul, a transaction freeze is emerging mainly in high-priced apartments heavily affected by loan regulations. The apartment official price to be announced in mid-March is also expected to act as a factor that dampens the buying sentiment for high-priced apartments. However, demand continues steadily for mid-to-low-priced apartments below 900 million KRW, so a trend reversal is expected to be difficult. In the metropolitan area, non-regulated and undervalued areas are engaging in price matching, continuing the unstable housing price trend. Yeokyunghee, senior researcher at Real Estate 114, said, "With the expected domestic interest rate cut following the US base rate cut, abundant liquidity in the market may act as a fuse for the housing market," adding, "However, due to strong loan regulations, the impact will be limited."

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