Nevertheless, Seoul Apartment Prices Rose... 10 Consecutive Weeks of Increase

Nodogang and Geumgwan Districts Leading Uptrend with Concentration of Mid-Low Priced Apartments Under 900 Million Won

[Asia Economy Reporter Onyu Lim] Despite successive real estate regulation tightenings, apartment prices in Seoul have risen for 10 consecutive weeks. The panic buying by people in their 30s led the price increase, with the 'Nodogang' (Nowon, Dobong, Gangbuk districts) and 'Geumgwan-gu' (Geumcheon, Gwanak, Guro districts), where mid-to-low priced apartments under 900 million KRW are concentrated, leading the upward trend.

According to the 'Weekly Apartment Market Trends in the Metropolitan Area' announced by Real Estate 114 on the 31st, the apartment sale prices in Seoul for the 4th week of July rose by 0.11%, with reconstruction and general apartments increasing by 0.07% and 0.12%, respectively.

By autonomous district, the prices rose in the order of Gangdong (0.34%), Geumcheon (0.31%), Dobong (0.28%), Guro (0.26%), Seongbuk (0.19%), Seodaemun (0.16%), Gwanak (0.15%), Nowon (0.15%), and Songpa (0.15%).

Gangdong saw a large price increase as demand continued in complexes with relatively recent move-in years. Gildong Gangdong Ja-i, Godeok-dong Godeok Gracium, and Godeok Raemian Hillstate all rose by up to 20 million KRW.

With buying demand concentrated on mid-to-low priced apartments under 900 million KRW, Geumcheon, Dobong, Guro, and Seongbuk also saw significant increases. In Geumcheon, Namseoul Hillstate in Siheung-dong, Samik in Doksam-dong, and Sindobreinu rose by up to 35 million KRW, while in Dobong, Woseong 1st Complex in Banghak-dong, Hyundai 3rd Complex in Ssangmun-dong, and Sanggye Jugong 19 Complex in Chang-dong rose by about 10 million KRW.

New towns (0.06%) saw price increases as low-priced listings were exhausted, with Bundang (0.10%), Ilsan (0.09%), Pyeongchon (0.09%), Paju Unjeong (0.08%), Dongtan (0.07%), and Gwanggyo (0.07%) all rising.

In Bundang, complexes such as Mujigae 2 Complex LG in Gumi-dong, Jangmi Dongbu in Yatap-dong, Hyoja Dong-a in Seohyeon-dong, and Jeongdeun Dong-a 1 Complex in Jeongja-dong rose by about 10 million KRW. Ilsan also saw up to 10 million KRW increases in Gangseon 14 Complex Doosan in Juyop-dong, Hugok 18 Complex Hyundai in Ilsandong, Huindol 1 Complex Kumho Town in Baekseok-dong, and Hosu 4 Complex LG Lotte in Janghang-dong.

Gyeonggi and Incheon (0.09%) saw increases in Gwangmyeong (0.30%), Hanam (0.24%), Namyangju (0.21%), Gimpo (0.15%), Yongin (0.14%), Guri (0.11%), and Goyang (0.10%).

Gwangmyeong's price increase was significant due to relocation demand from redevelopment projects. Juga 5 Complex in Haan-dong, Gwangmyeong Doosan We've Trizium, Humancia 2 Complex in Soha-dong, and Dodeok Parktown 2 Complex in Cheolsan-dong rose by up to 17.5 million KRW. Hanam saw about 10 million KRW increases in Hansol Richville 3 Complex in Deokpung-dong, Hanam Union City Aileen's Garden in Sinjang-dong, and Changwoo Village in Changwoo-dong.

The metropolitan area's jeonse (lease) market continued to experience a shortage of jeonse listings, with Seoul rising by 0.10%, and Gyeonggi, Incheon, and new towns each rising by 0.06%. Notably, Seoul apartment jeonse prices have been rising for 54 consecutive weeks without decline since mid-June last year.

Lim Byung-chul, chief researcher at Real Estate 114, said, "It has been three weeks since the 7·10 measures were announced, but the upward trend in apartment prices in the metropolitan area is not easily breaking," adding, "The burden of holding taxes has increased the preference for owning a 'single smart home,' and the buying demand for mid-to-low priced apartments has maintained a seller's market so far."

He continued, "Recently, the so-called 'Real Estate 3 Laws' including the Comprehensive Real Estate Tax Act, Corporate Tax Act, and Income Tax Act have been swiftly processed, causing both sellers and buyers to enter a temporary lull," but added, "Buying demand for mid-to-low priced apartments continues to flow in, especially around the outskirts of Seoul and Gyeonggi, so it remains to be seen how long this lull will last."

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