End of COVID-19 Driven 'House Price Sale'... Seoul Apartment Prices Turn Upward Trend

Seoul Apartment Prices Recover After COVID-19 Slowdown

Gangnam and Songpa Districts End Long Downtrend and Shift to Uptrend

GBC Groundbreaking and Jamsil MICE Boost Concentrated Buying

Sejong and Daejeon Surge... Incheon and Gyeonggi Province Continue Uptrend

(Photo by Yonhap News)

[Asia Economy Reporter Moon Jiwon] Apartment prices in Seoul have turned to an upward trend after 10 weeks. Housing prices, which had stalled for a while due to COVID-19 and government regulations, are showing signs of rebound.

High-priced apartment complexes concentrated in Gangnam and Songpa districts shifted to an uptrend for the first time in five months since January 20, and Seocho and Gangdong districts also changed from a downtrend to stable last week.

◆Recovery of Housing Prices That Had Stalled Due to COVID-19 and Government Regulations

According to the 'Weekly Apartment Price Trends for the 2nd Week of June' released by the Korea Real Estate Board on the 11th, apartment prices in Seoul rose by 0.02% compared to the previous week as of June 8. This marks the first upward shift in 10 weeks since March 30.

Seoul apartment prices began to decline from March 30, when the economic recession caused by COVID-19 started to take full effect, showing a decline rate of -0.02% to -0.07%, but recently the rate of decline has narrowed, showing signs of recovery.

The Korea Real Estate Board explained, "Due to the base interest rate cut and development prospects, urgent sale properties in the Gangnam area, which had a large decline, have been exhausted and buying demand has flowed in, resulting in a shift to an upward trend after 10 weeks since the 5th week of March decline."

In fact, last month, construction began on the Hyundai Motor Group Global Business Center (GBC) in Samseong-dong, Gangnam-gu, and recently, Seoul city announced a private investment plan for the Jamsil Sports and MICE (Meetings, Incentives, Conferences, and Exhibitions) project in Songpa-gu, concentrating buying sentiment in the Gangnam area.

According to the Korea Real Estate Board survey, Gangnam-gu rose 0.02% this week, and Songpa-gu rose 0.05%. Both districts experienced their first rise in 21 weeks since January 20. Seocho-gu and Gangdong-gu also shifted to stable this week as prices rose mainly in new and popular complexes. As a result, all four Gangnam districts stopped their downtrend.

Outside the four Gangnam districts, Guro-gu (0.05%) continued its uptrend mainly in mid- to low-priced complexes, and Yangcheon-gu (0.02%) shifted to an uptrend as buying demand flowed in mainly for reconstruction after the Mokdong 5 Complex passed the detailed safety inspection.

The uptrend continued in 14 districts north of the Han River. Mapo and Yongsan districts (0.00%) showed mixed trends by area and shifted to stable, Dongdaemun-gu (0.03%) rose due to strong new supply, and Jungnang-gu (0.02%) rose mainly in complexes priced below 900 million KRW in Myeonmok and Sinnae-dong.

Among Seoul's autonomous districts, most returned to stable or upward trends, with Jung-gu being the only district to fall by 0.01% compared to the previous week (-0.02%).

(Photo by Yonhap News)

◆Sejong and Daejeon Also Surge... Capital Region's Uptrend Continues

In Sejong City, apartment prices rose sharply by 0.62% this week. Sejong has been on an upward trend for 31 consecutive weeks since November 11 last year. The rate of increase has also grown continuously over the past seven weeks: '0.04% → 0.08% → 0.09% → 0.24% → 0.28% → 0.44% → 0.62%.'

The Korea Real Estate Board analyzed, "The upward trend continued mainly in Dodam and Saerom-dong, which have favorable locations within the Happy City, and in Goun and Areum-dong, where there is anticipation of improved transportation conditions (pilot operation of BRT auxiliary line), as well as some complexes in Jochiwon."

Daejeon also rose 0.46% this week. Daedeok-gu (0.27%) rose mainly in Seokbong-dong adjacent to Sejong City and in older complexes in Beop-dong with reconstruction expectations. Yuseong (0.56%) and Dong-gu (0.54%) rose due to expectations for innovation city development, and Jung-gu (0.46%) rose mainly in Oryu and Taepyeong-dong, which have development prospects or favorable locations.

Incheon rose 0.21%, the same as the previous week. Seo-gu (0.31%) showed an uptrend mainly in Cheongna and Geomdan New Towns with good residential environments and Seoknam-dong, which benefits from the Line 7 extension. Bupyeong-gu (0.24%) rose mainly in Bugae, Sanggok, and Galsan-dong, where redevelopment projects and transportation benefits continue.

Gyeonggi Province increased its rise to 0.19% compared to 0.17% the previous week.

In Ansan City (0.51%), the uptrend continued amid ongoing transportation benefits. Danwon-gu (0.55%) rose mainly in Seonbu-dong, where redevelopment expectations exist, and Sangnok-gu (0.46%) rose mainly in Geonggeon-dong.

Hanam City (0.39%) saw an expanded rise due to transportation benefits (Line 5 extension) and demand from waiting buyers, and Pyeongtaek City (0.37%) expanded its rise mainly in complexes near Jije Station amid development prospects (Samsung Electronics' Pyeongtaek investment announcement).

In Yongin Giheung-gu (0.56%), the rise expanded mainly in mid- to low-priced complexes in Yeongdeok and Dongbaek-dong, and in Suwon's Paldal-gu (0.31%), Gwonseon-gu (0.16%), and Yeongtong-gu (0.14%), the uptrend continued due to transportation benefits and strong new supply.

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