Seoul Apartment Price Increase Slows for 2nd Week After July 10 Measures, Up 0.1%

[Asia Economy Reporter Yuri Kim] After the announcement of the July 10 measures, which included strengthened taxation on multi-homeowners, the upward trend in Seoul apartment prices slowed for two consecutive weeks. This is interpreted as a result of short-term price surges and accumulated fatigue from government regulations causing buyers' chase purchases to somewhat pause. However, in June, the number of apartment sales transactions in the metropolitan area increased significantly by 214.6% month-on-month (from 25,095 to 53,850 transactions) and 346.1% year-on-year (from 15,560 to 53,850 transactions), and with all low-priced listings sold out, the shortage of listings has intensified. Although the rate of increase has slightly decreased, the upward trend remains in Seoul's Dobong, Seongbuk, Nowon, and Guro districts, where mid-to-low-priced apartments are concentrated. In particular, the rent prices have expanded their rate of increase entering the vacation season at the end of July, indicating worsening housing insecurity for tenants.

According to Real Estate 114 on the 24th, the rate of change in Seoul apartment sale prices recorded 0.10%, down 0.02 percentage points from the previous week. Reconstruction and general apartments rose by 0.06% and 0.11%, respectively. Additionally, Gyeonggi and Incheon increased by 0.08%, and new towns rose by 0.07%.

All 25 districts in Seoul showed an upward trend, with Dobong (0.25%), Seongbuk (0.24%), Nowon (0.23%), Guro (0.22%), Dongdaemun (0.19%), Seodaemun (0.17%), Gangseo (0.15%), Songpa (0.15%), and Gwanak (0.14%) leading the increases. Non-Gangnam areas, where apartments priced below 900 million KRW are concentrated, are driving the rise. In Dobong, Dong-A Ecovil in Dobong-dong, Sanggye Jugong Complex 18 in Chang-dong, and Hanyang 5th Complex in Ssangmun-dong increased by 5 to 10 million KRW. In Seongbuk, Raemian La Scent in Jongam-dong, Gileum New Town Complex 9 in Gileum-dong, and Dongbu Centreville in Donam-dong rose by 7.5 to 10 million KRW. In Nowon, Gyeongnam Honorsville in Junggye-dong increased by 10 million KRW, Jungang Heights in Junggye-dong rose by 7 to 15 million KRW, and Hyundai in Wolgye-dong increased by 10 million KRW. In Guro, Daerim 1st Complex in Sindorim-dong rose by 5 to 15 million KRW, Cheonwang I-Penhouse 1st Complex in Oryu-dong increased by 10 to 15 million KRW, and Hanil U&AI in Gocheok-dong rose by 10 million KRW.

New towns increased in the order of Bundang (0.09%), Gwanggyo (0.09%), Pyeongchon (0.07%), Jungdong (0.07%), Gimpo Hangang (0.07%), Pangyo (0.07%), and Paju Unjeong (0.07%). In Bundang, Mujigae 1st Complex Daerim in Gumi-dong, Jangan Town Geonyeong 2nd Complex in Bundang-dong, and Jeongdeun Woosung 6th Complex in Jeongja-dong rose by 5 to 10 million KRW. In Gwanggyo, Gwanggyo Sangnok Xi in Sanghyeon-dong and Gwanggyo Jayeon & Hillstate in Iui-dong increased by 2.5 to 10 million KRW. In Pyeongchon, Hangaram Silla in Gwanyang-dong, Kkum Hyundai in Pyeongchon-dong, and Mokryeon Gyeongnam 8th Complex in Hogye-dong rose by 5 million KRW.

Gyeonggi and Incheon rose in the order of Yongin (0.18%), Hanam (0.15%), Gwangmyeong (0.14%), Bucheon (0.12%), Goyang (0.11%), Guri (0.11%), Namyangju (0.10%), Anyang (0.09%), and Hwaseong (0.08%). In Yongin, E-Pyeonhansesang Suji in Pungdeokcheon-dong, Spa Palace Riga in Eonnam-dong, Dodam Village 7th Complex Trierche in Jukjeon-dong, and Seongsan Village Seohae Grandble in Jungdong rose by 5 to 15 million KRW. In Hanam, Hanam Union City Aileen's Garden in Sinjang-dong and Booyoung in Changwoo-dong increased by 10 million KRW. In Gwangmyeong, E-Pyeonhansesang Centreville in Haan-dong, Cheolsan Raemian Xi in Cheolsan-dong, and Woorim Phil-U in Soha-dong rose by 5 to 15 million KRW. In Bucheon, Hanshin in Sosabon-dong and Samik Ceramic in Goean-dong increased by 5 to 10 million KRW.

Despite entering the low season of the vacation period, the rental market continues to face an overall shortage of listings, with Seoul's rent prices rising by 0.11%, up 0.03 percentage points from the previous week. Gyeonggi, Incheon, and new towns recorded increases of 0.05% and 0.06%, respectively, with the rate of increase growing compared to the previous week.

Seoul's rent prices rose in Dongdaemun by 0.43%, followed by Gangbuk (0.31%), Seongbuk (0.30%), Songpa (0.14%), Gangnam (0.12%), Gangseo (0.11%), Guro (0.11%), and Mapo (0.10%). The market overall has abundant rental demand, but rental listings have become severely scarce, driving prices up. In Dongdaemun-gu, Raemian Areumsoop in Jeonnong-dong, Dongdaemun The First Desiang in Jangan-dong, and Ssangyong in Imun-dong rose by 5 to 10 million KRW. In Gangbuk, Hyundai in Suyu-dong and Raemian Tribera 1st Complex in Mia-dong increased by 5 to 15 million KRW. In Seongbuk, Gileum New Town 4th and 7th Complexes in Gileum-dong rose by 10 million KRW.

New towns rose in the order of Bundang (0.09%), Ilsan (0.09%), Pyeongchon (0.08%), Dongtan (0.07%), Jungdong (0.05%), and Gwanggyo (0.05%). Rental demand continues to flow steadily into new towns with good infrastructure and convenient access to Seoul. In Bundang, Hayan Jugong 5th Complex in Gumi-dong, Sibeom Hanyang in Seohyeon-dong, and Maehwa Village Geonyeong 1st Complex in Yatap-dong rose by 5 million KRW. In Ilsan, Munchon 2nd Complex Life in Juyop-dong and Gangseon 15th Complex Boseong increased by 5 to 7.5 million KRW. In Pyeongchon, Mugunghwa Kolon in Hogye-dong and Hangaram Sekyung in Gwanyang-dong rose by 2.5 to 5 million KRW.

Gyeonggi and Incheon rose in the order of Hanam (0.22%), Anyang (0.09%), Gwangmyeong (0.08%), Siheung (0.08%), Yongin (0.08%), and Goyang (0.07%).

Yoon Ji-hae, Senior Researcher at Real Estate 114, said, "Although the rate of increase in sale prices has slowed for two consecutive weeks, the upward trend continues, indicating ongoing anxiety among buyers. Especially, despite the government's expansion of regulated areas to the entire metropolitan area (with some exceptions) through the June 17 measures, chase buying by buyers continued until the end of June, resulting in all low-priced listings being sold out. Because of this, a seller's market has formed, and the trend of hitting new highs continues."

She also pointed out that the expansion of rent price increases during the vacation season is a source of instability in the sales market. She said, "With the National Assembly's passage of the 'Lease 3 Act' approaching, renewals are accelerating, and if rent prices turn strong, many tenants may exit to the sales market, worsening the shortage of listings in both rental and sales markets. Moreover, due to the shortage of listings and rising prices in Seoul, rental listings in new towns and Gyeonggi Province are also being rapidly depleted."

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