Seoul Jeonse Prices Soar, Incheon and Gyeonggi Land Prices Stall... Aftermath of the 6·17 Measures

Seoul Apartment Sale and Jeonse Prices Maintain Upward Trend
Housing Instability in Seoul Deepens Since 6·17 Measures
Incheon and Gyeonggi Province See Slower Growth... Stagnation

(Photo by Yonhap News)

[Asia Economy Reporter Moon Jiwon] Despite the announcement of the June 17 real estate measures, apartment sale and jeonse prices in Seoul continue to rise. In contrast, areas such as Gyeonggi Province and Incheon showed signs of slowing down as the rate of price increase decreased.

According to the weekly apartment price trend for the 5th week of June released by the Korea Real Estate Board on the 2nd, as of the 29th, apartment sale prices in Seoul rose by 0.06%, maintaining the same rate of increase as the previous week.

Although buyer sentiment has weakened since the government announced the June 17 measures and designated the Gangnam area as a land transaction permission zone, it is interpreted that the rate of increase was maintained last week due to abundant liquidity from low interest rates and many development prospects.

Gangbuk (0.10%), Nowon (0.08%), and Dobong-gu (0.08%) saw higher price increases in complexes priced below 900 million KRW. Eunpyeong (0.07%) and Dongdaemun-gu (0.07%) rose mainly in mid-to-low price complexes, while Mapo-gu (0.07%) increased mainly in the Seongsan-dong redevelopment complexes.

Songpa-gu (0.07%) saw price increases as last-minute buying surged before the designation of the land transaction permission zone. Seocho-gu (0.06%) rose mainly in major representative complexes, and Gangdong-gu (0.08%) increased mainly in newly built complexes priced below 900 million KRW.

Gangnam-gu (0.03%) saw a reduced rate of increase as buying demand decreased in places like Eonma Apartment due to strengthened redevelopment regulations.

Seoul apartment jeonse prices rose by 0.10%, increasing the rate of rise compared to the previous week (0.08%). The Korea Real Estate Board analyzed, "Due to prolonged low interest rates resulting in abundant liquidity and continued supply shortages, Seoul has seen a rise for 53 consecutive weeks."

Due to the June 17 real estate measures, the already scarce jeonse supply has disappeared, creating an atmosphere of rapid jeonse price increases.

As the government designated major cities in Incheon and Gyeonggi Province as regulated areas through the June 17 measures, a movement has been detected where speculative capital is flowing back from the outskirts of the metropolitan area to Seoul.

(Photo by Yonhap News)

In areas such as Incheon and Gyeonggi Province, where apartment prices had risen significantly, the rate of increase showed signs of slowing.

Incheon rose by 0.07% this week, significantly down from the previous week's increase of 0.34%. With Yeonsu, Namdong, and Seo-gu in Incheon designated as speculative overheating districts and the remaining districts designated as adjustment target areas, buying demand decreased.

Gyeonggi Province also rose by 0.24% this week, down from 0.39% the previous week. Areas such as Guri (0.19%), Suwon (0.15%), Ansan (0.12%), and Siheung (0.09%) saw a reduced rate of increase compared to last week, while Yangju (-0.05%) experienced a larger decline.

Gimpo City, which was not included in the regulated areas in the June 17 measures and saw a rapid price increase, rose by only 0.90% this week. Compared to the sharp 1.88% rise last week immediately after the announcement, it is analyzed that stability is returning.

Sejong City saw a slight decrease in apartment price increase rate from 1.55% to 1.48%.

Cheongju City (0.10%) saw a reduction in buying inquiries after being designated as an adjustment target area, resulting in a reduced rate of increase in all districts.

Cheonan City (0.34%), which is free from regulations, rose due to demand for new complexes such as Seongseong District and low-priced complexes in Buldang and Ssangyong-dong areas. Gyeryong City (1.49%) also saw an expanded rate of increase due to favorable new sales in the Daesil District.

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