"Outer Areas Including Nodo-gang Lead" Seoul Apartment Prices Rise 0.09% This Week

[Asia Economy Reporter Yuri Kim] Seoul apartment prices rose by 0.09%, continuing the upward trend, but due to the spread of the novel coronavirus (COVID-19) in the metropolitan area during the final vacation season, the rate of increase has stagnated for the third consecutive week. However, areas with a concentration of mid-to-low-priced apartments such as Nodogang (Nowon, Dobong, Gangbuk districts) and Geumgwan-gu (Geumcheon, Gwanak, Guro districts) continue to see demand even after low-priced listings have been exhausted, creating an atmosphere of occasional transactions. These areas continue to lead the rise in Seoul apartment prices due to a seller's market caused by a shortage of listings. The jeonse (long-term lease) market also continued its upward trend due to a shortage of jeonse listings despite the policy to lower the conversion rate from monthly rent to jeonse, with Seoul apartment jeonse prices rising for 58 consecutive weeks.

According to Real Estate 114 on the 21st, Seoul apartment sale prices rose by 0.09%, with reconstruction and general apartments increasing by 0.06% and 0.10%, respectively. Additionally, Gyeonggi and Incheon rose by 0.07%, and new towns increased by 0.06%.

In Seoul, Dobong (0.19%), Nowon (0.17%), Gwanak (0.15%), Dongdaemun (0.15%), Seodaemun (0.15%), Seongdong (0.15%), Seongbuk (0.15%), Gangbuk (0.11%), Geumcheon (0.11%), Gangseo (0.10%), Guro (0.10%), and Songpa (0.1%) all saw increases. In Dobong, areas such as Byeoksan 1st Complex in Banghak-dong, Cheonggu, Woosung 2nd Complex, Samik Ceramic in Ssangmun-dong, Sanggye Jugong 19 Complex in Chang-dong, and Bukhansan I-Park rose by about 5 million KRW. In Nowon, Kolon Madeul Village in Hagye-dong, Bulam Daerim in Sanggye-dong, Boram, Yangji Daerim 1st Complex in Junggye-dong, and Woosung 3rd Complex in Junggye increased by 10 to 25 million KRW. In Gwanak, large complexes such as Bongcheon Woosung, Doosan, and Samsung Mountain Jugong 3rd Complex in Sillim-dong rose by 10 to 15 million KRW.

In new towns, Pyeongchon (0.09%), Bundang (0.08%), Ilsan (0.08%), Dongtan (0.07%), Gwanggyo (0.07%), and Jungdong (0.06%) rose. In Anyang, areas such as Kkum Woosung in Pyeongchon-dong, Hyangchon Hyundai 5th Complex, Mokryeon 8th Complex Gyeongnam in Hogye-dong, and Mugunghwa Geonyeong rose by about 5 million KRW. In Bundang, Hyoja Hyundai in Seohyeon-dong, Mujigae 4th Complex Jugong in Gumi-dong, Hansol LG in Jeongja-dong, and Jangmi Kolon in Yatap-dong rose by about 10 million KRW. In Ilsan, Gangseon 14th Complex Doosan in Juyop-dong, Hugok 2nd Complex Dongyang and Daechang in Ilsandong, and Baekma 2nd Complex Geukdong Samhwan in Madu-dong rose by 5 to 10 million KRW.

In Gyeonggi and Incheon, Gwangmyeong (0.15%), Yongin (0.15%), Anyang (0.13%), Goyang (0.09%), Bucheon (0.09%), Uijeongbu (0.09%), Guri (0.08%), Seongnam (0.08%), and Hwaseong (0.08%) rose. In Gwangmyeong, demand for large apartment complexes continued sporadically, with Haandong e-Pyeonhansesang Centreville, Jugong 7th Complex, Gwangmyeong Doosan We've Trizium, Cheolsan-dong Jugong 12th Complex, and Doosan We've rising by 5 to 15 million KRW. In Yongin, Yeongdeok-dong Dongwon Royal Duke, Gugal-dong Hillstate Giheung, Changdeok-dong Humansia Mulpeure Village 3rd Complex, and Jungdong Sindongbaek Seohae Grand Bleu 2nd Complex rose by 10 to 25 million KRW. In Anyang, Raemian Anyang Megatria in Anyang-dong, Seoksu e-Pyeonhansesang in Seoksu-dong, and Pyeongchon The Sharp I-Park in Hogye-dong rose by 5 to 15 million KRW.

The metropolitan area's jeonse market rose by 0.11% in Seoul due to a shortage of jeonse listings, while Gyeonggi, Incheon, and new towns rose by 0.06% and 0.07%, respectively.

In Seoul's jeonse market, scarcity of listings led to increases in Seongdong (0.21%), Songpa (0.21%), Dongdaemun (0.20%), Dobong (0.17%), Seongbuk (0.17%), and Gwangjin (0.16%). In Seongdong, Hanjin Granville in Hawangsimni-dong, Hyundai in Majang-dong, Ssangyong in Seongsu-dong, Haengdang Daerim in Haengdang-dong, and Doosan We've in Geumho-dong rose by 10 to 30 million KRW. In Songpa, Garak Kumho in Garak-dong, Jamsil Parkrio in Sincheon-dong, Samsung Raemian in Songpa-dong, Asia Athletes' Village in Jamsil-dong, and Olympic Family Town in Munjeong-dong rose by 10 to 25 million KRW. In Dongdaemun, Dapsimni Park Xi in Dapsimni-dong, Jugong 2nd Complex in Hwikyung-dong, and Shin Hyundai in Hoegi-dong rose by 5 to 10 million KRW.

In new towns, Dongtan (0.11%), Pangyo (0.11%), Ilsan (0.10%), Pyeongchon (0.10%), and Gwanggyo (0.08%) rose. In Dongtan, Simbeon Hanbit Hanwha Kkum-e Green in Bansong-dong, Simbeon Hanbit KCC Switzen, Dongtan 2nd Sinan Insville Vera 1st Complex in Cheonggye-dong, Dongtan Station The Sharp Central City, and Dongtan Station Bando Yubora Ivy Park 6.0 in Osan-dong rose by about 5 million KRW. In Pangyo, Botdeul Village 1st Complex Pungsung Shinmiju in Sampyeong-dong rose by about 10 million KRW. In Ilsan, Jangseong 3rd Complex Geonyeong in Daehwa-dong, Gangchon 1st Complex Dong-A in Madu-dong, and Munchon 2nd Complex Life in Juyop-dong rose by 2.5 to 5 million KRW.

In Gyeonggi and Incheon, southern Gyeonggi areas such as Gwacheon (0.21%), Gwangmyeong (0.17%), Yongin (0.16%), Uiwang (0.15%), Hanam (0.12%), Siheung (0.10%), Anyang (0.10%), and Uijeongbu (0.09%) rose relatively more. In Gwacheon, the large complex Raemian Sur 3rd Complex in Wonmun-dong rose by about 10 million KRW. In Gwangmyeong, Jugong 12th Complex in Cheolsan-dong, Jungang Heights 1st Complex in Gwangmyeong-dong, and Humansia 2nd Complex in Soha-dong rose by 5 to 15 million KRW. In Yongin, Gugal-dong Giheung Station J-Well Prugio, Pungdeokcheon-dong Suji 1 Samsung 4th Complex, Jukjeon-dong Dodam Village Umi Inosville 1st Complex, and Sinbong-dong Sinbong Xi 2nd Complex rose by about 10 million KRW.

Lim Byung-chul, Senior Researcher at Real Estate 114, said, "With buyers and sellers cautiously watching each other, the upward trend in apartment prices in the metropolitan area is not easily breaking," adding, "Demand continues to flow steadily into the outskirts of Seoul, and due to a shortage of listings, asking prices are also rising." He continued, "Interest remains high as Seoul's apartment subscription market records the highest competition rate ever, and demand is expected to increase ahead of the full-scale autumn moving season." However, he also noted that the spread of COVID-19 centered in the metropolitan area could be a variable affecting the rise in housing prices."

The metropolitan area's jeonse market continues to rise due to a persistent shortage of listings. Despite the implementation of the lease renewal request system, the rent ceiling system, and the announcement of a policy to lower the monthly rent to jeonse conversion rate, these measures have been insufficient to stabilize the jeonse market. He pointed out, "As the rise in jeonse prices caused by the shortage of jeonse listings continues, the jeonse shortage is likely to worsen further as the autumn moving season approaches."

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