"One Week After the 7·10 Measures"…Seoul Apartment Prices Up 0.12%, Growth Slows Down

After Measures Announcement, a Waiting Game Between Sellers and Buyers
Summer Off-Season Sees Jeonse Prices Rise Amid 'Imdaechabeop 3' Preview

[Asia Economy Reporter Kim Yuri] After the announcement of the July 10 housing market stabilization supplementary measures, the rate of increase in apartment prices in Seoul has slowed. This is due to a pause in buying demand as short-term price surges and fatigue from regulations have accumulated. However, while the phenomenon of withheld listings continues throughout the Seoul area, price increases remain strong in mid-to-low-priced apartments near subway stations in Guro, Dobong, and Gwanak, as well as in newly built large complexes in Gangdong. In the metropolitan area, Gwangmyeong and Seongnam, which have redevelopment benefits in old downtown areas, led the upward trend.

According to Real Estate 114 on the 17th, the rate of change in Seoul apartment sale prices recorded 0.12%, down 0.02 percentage points from the previous week. Reconstruction and general apartments rose by 0.07% and 0.13%, respectively. In addition, Gyeonggi and Incheon rose by 0.10%, and new towns increased by 0.06%.

In Seoul, the increases were in the order of Gangdong (0.32%), Guro (0.31%), Dobong (0.25%), Songpa (0.23%), Gwanak (0.22%), Seongbuk (0.22%), Gangseo (0.21%), Dongdaemun (0.18%), and Nowon (0.15%). In Gangdong, newly built large complexes such as Godeok Raemian Hillstate and Godeok Gracium in Godeok-dong, as well as Amsa-dong Seonsa Hyundai, which has remodeling issues, rose by 5 million to 25 million KRW. In Guro, where real demand continues for mid-to-low-priced apartments near subway stations, Daerim 1st and 2nd complexes in Sindorim-dong, Guro Doosan in Guro-dong, and Hyundai 1st complex in Gaebong-dong rose by 2.5 million to 25 million KRW. In Dobong, Chang-dong Sangye Jugong 19th complex, Sangye Jugong 17th complex, and Jugong 3rd complex rose by 5 million to 7.5 million KRW. In Songpa, the MICE development benefits continued to strengthen housing prices in the area. Jamsil-dong Jugong 5th complex, Munjeong-dong Olympic Family Town, and Sincheon-dong Jamsil Parkrio rose by 10 million to 30 million KRW. In Gwanak, Samsung San Jugong 3rd complex in Sillim-dong, Seonghyeon Dong-A in Bongcheon-dong, and Gwanak Prugio rose by 5 million to 20 million KRW, mainly in medium-to-large sized units.

In new towns, Gwanggyo (0.09%), Sanbon (0.08%), Gimpo Hangang (0.08%), Pangyo (0.08%), and Pyeongchon (0.07%) rose. In Gwanggyo, Gwanggyo Nature & Xi 2nd and 3rd complexes in Iui-dong, Suwon-si rose by 5 million to 50 million KRW. In Sanbon, Gaya 5th Jugong 1st complex and Ureuk Jugong 7th complex in Sanbon-dong rose by 5 million to 10 million KRW. In Gimpo Hangang, Chodang Village Jungheung S-Class Liberty and Chodang Village Unam Firstville in Janggi-dong rose by 2.5 million to 9 million KRW. In Pangyo, Pangyo Won Village 9th complex and Botdeul Village 1st complex Pungsung Shinmiju rose by 10 million KRW. In Pyeongchon, Mokryeon Woosung 7th complex in Hogye-dong and Chowon 5th complex LG in Pyeongchon-dong rose by 5 million to 15 million KRW.

In Gyeonggi and Incheon, the upward trend centered on old downtown areas and subway station areas with good residential conditions, with Gwangmyeong (0.17%), Seongnam (0.15%), Yongin (0.15%), Gimpo (0.12%), Anyang (0.12%), Osan (0.12%), and Suwon (0.11%) rising. In Gwangmyeong, Haan-dong Jugong 5th and 12th complexes, Gwangmyeong Doosan We've Tragusium, and Gwangmyeong-dong Gwangmyeong Haemoro Iyeon rose by 5 million to 12.5 million KRW. In Seongnam, Samik Geumgwang in Geumgwang-dong and Jungang-dong Hills State 2nd complex rose by 5 million to 10 million KRW. In Yongin, Dongcheon-dong Dongcheon Xi and Seongbok-dong Pureun Maeul Prugio, mainly subway station apartments on the Shinbundang Line, rose by 5 million to 10 million KRW. In Gimpo, Pureun Maeul Sinan Silk Valley in Gamjeong-dong and Gimpo Sau I-Park in Sau-dong rose by 5 million to 14.5 million KRW.

Despite entering the summer off-season for moving, the jeonse (long-term lease) market continued to experience a shortage of listings, with Seoul rising by 0.08%. Gyeonggi, Incheon, and new towns recorded 0.04% and 0.03%, respectively, showing a reduced rate of increase compared to the previous week.

In Seoul's jeonse market, the increases were in the order of Gangdong (0.45%), Songpa (0.23%), Guro (0.21%), Seongbuk (0.18%), Yongsan (0.09%), and Yeongdeungpo (0.06%). In Gangdong, Godeok Gracium in Godeok-dong, which is in its first year of occupancy and has few listings, as well as Godeok Raemian Hillstate, Gangil River Park 3rd complex in Gangil-dong, and Dunchon Prugio in Dunchon-dong rose by 5 million to 25 million KRW. In Songpa, Resentz and Trizium in Jamsil-dong and Samsung Raemian in Songpa-dong rose by 5 million to 25 million KRW. In Guro, Hyundai 1st complex in Gaebong-dong and Ssangyong Platinum Noble in Guro-dong, mainly medium-to-large units, rose by 5 million to 30 million KRW. In Seongbuk, Samsung Raemian in Jongam-dong, Jeongneung Poonglim I-One in Jeongneung-dong, and Raemian Wolgok 1st complex in Hawolgok-dong rose by 5 million to 10 million KRW.

In new towns, Gwanggyo (0.07%), Ilsan (0.06%), Pyeongchon (0.06%), Sanbon (0.05%), and Pangyo (0.05%) rose. In Gwanggyo, Gwanggyo Doosan We've in Woncheon-dong, Suwon-si, and Gwanggyo Nature & Xi 3rd complex in Iui-dong rose by 5 million to 20 million KRW. In Ilsan, Baeksong 9th complex Doosan and Baeksong 6th complex Daewoo Byeoksan in Baeksok-dong, and Hosu 4th complex LG Lotte in Janghang-dong rose by 10 million to 12.5 million KRW.

In Gyeonggi and Incheon, mainly in the southern Gyeonggi area, the market showed strength with Gwangmyeong (0.12%), Osan (0.12%), Yongin (0.10%), Hwaseong (0.07%), Goyang (0.06%), Gimpo (0.06%), Uiwang (0.06%), and Uijeongbu (0.06%) rising. In Gwangmyeong, due to relocation demand from redevelopment projects and a shortage of jeonse listings, Cheolsan-dong Jugong 13th and 12th complexes, and Haan-dong Gwangmyeong Hyundai 1st and 2nd complexes rose by 5 million to 10 million KRW. In Osan, Wondong Prugio in Wondong rose by 10 million KRW. In Yongin, Shindongbaek Seohae Grandble 2nd complex in Jung-dong, Unam Firstville in Sinbong-dong, and Samgeo Village Samsung Raemian 1st complex in Mabuk-dong rose by 5 million to 10 million KRW. In Hwaseong, Sinchang Mission Hill 1st complex in Byeongjeom-dong rose by 7.5 million KRW.

It has been a week since the government announced the July 10 measures. Real Estate 114 forecasted that although inquiries from buyers have somewhat decreased, the upward trend in apartment prices in the metropolitan area will not easily subside. Senior researcher Yeo Kyung-hee said, "With the increased tax burden on multi-homeowners, the preference for a 'smart single home' is growing, highlighting the value of apartments in areas with good residential conditions in Seoul and the metropolitan area. As a result, movements by sellers to withhold listings or maintain asking prices are also being detected. The cautious market is expected to continue for a while, with the upward trend persisting."

Despite entering the summer off-season in July and August, some landlords are raising jeonse deposits in anticipation of the 'Lease 3 Act.' Senior researcher Yeo added, "If the number of landlords who choose to live in their properties themselves or convert to monthly rent increases, the shortage of jeonse listings will accelerate, potentially leading to a larger price increase."

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