Despite the June 17 Measures, Seoul Apartment Prices Continue to Rise... 'Regulated Area' Incheon Sees a Pause

Seoul Apartment Price Increase Rate 0.06%→0.11%
Incheon 0.07%→0.05% Increase Rate Shrinks

(Photo by Yonhap News)

[Asia Economy Reporter Moon Jiwon] Despite the government's June 17 real estate measures, apartment prices in Seoul continue to rise. Although regulations such as loan restrictions are increasingly tightened, the expansion of liquidity due to low interest rates has concentrated buying sentiment on Seoul apartments, further widening the price increase.

According to the weekly apartment price trend for the first week of July announced by the Korea Real Estate Board on the 9th, as of the 6th, apartment prices in Seoul rose 0.11% compared to the previous week (0.06%), increasing the rate of growth.

The Korea Real Estate Board analyzed, "While market stabilization policies such as follow-up measures on mortgage loans under the June 17 measures continue, the inflow of liquidity due to low interest rates and lack of alternative investment destinations has led to increased buying demand mainly in Songpa, Gangnam, and Seocho districts in the Gangnam area, and in mid-to-low priced and newly built large complexes in the Gangbuk area, expanding the price increase."

North of the Han River, prices rose mainly in mid-to-low priced complexes such as Dobong (0.14%), Gangbuk (0.13%), and Nowon-gu (0.13%). Mapo-gu (0.14%), Yongsan-gu (0.10%), and Seongbuk-gu (0.10%) also showed relatively large increases.

The upward trend was also clear north of the Han River. Songpa-gu (0.18%) saw price increases mainly in Sincheon, Munjeong, and Bangi-dong, while Gangnam-gu (0.12%) experienced decreased listings and increased buying demand mainly in Yeoksam, Dogok, and Gaepo-dong. Seocho-gu (0.10%) expanded its price increase mainly in newly built apartments in Banpo-dong. However, Yangcheon-gu (0.06%) showed a mixed trend with a reduced rate of increase following strengthened reconstruction regulations.

Incheon rose only 0.05% compared to the previous week (0.07%). As it was designated as a regulated area through this measure, buying demand decreased. Gyeonggi-do rose 0.24%, the same as the previous week. After the June 17 measures, the upward trend slowed in Gwangju (0.36%), Pyeongtaek (0.24%), Hwaseong (0.23%), and Osan-si (0.22%).

Gimpo-si (0.58%), which was not included in the regulated areas in this measure and attracted buying demand due to the 'balloon effect,' saw apartment prices rise mainly in Han River New Town and areas near the Gimpo Gold Line, but the rate of increase decreased.

On the other hand, Sejong rose 2.06% compared to the previous week (1.48%), expanding the rate of increase. The Korea Real Estate Board explained, "Buying demand flowed mainly into Jochiwon-eup on the outskirts of the Happy City, expanding the price increase."

Seoul's jeonse (long-term lease) prices rose 0.10%, the same as the previous week. The upward trend continued due to steady jeonse demand driven by preference for new buildings, waiting for subscription, education system reforms, and strengthened actual residence requirements.

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