"Sudden Appearance of Seoul Elevated Complex Urgent Sales"... Further Narrowing of Apartment Price Increase

Korea Real Estate Board Weekly Apartment Price Survey for 4th Week of August
Seocho and Songpa 0% Increase... Other Districts Also 'Stalling'
Jeonse Prices Rise Slower but Remain Unstable

The view of nearby apartments from Bukseoul Dream Forest (Photo by Yonhap News)

[Asia Economy Reporter Moon Jiwon] Due to the government's real estate measures and the resurgence of COVID-19, some urgent sale properties have appeared in high-priced complexes, further slowing the apartment price increase rate in Seoul.

In Sejong, where housing prices have soared following the 'administrative capital relocation' issue, the rise rate has somewhat stalled due to fatigue from the rapid increase. Although the Seoul apartment rental market still faces a shortage of listings due to the implementation of the Lease Protection Act, the rate of increase in rental prices has also slightly decreased.

According to the Korea Real Estate Board's weekly apartment price trend survey for the fourth week of August, as of the 24th, apartment prices in Seoul rose by 0.01% compared to the previous week. The rise rate has been steadily declining since peaking at 0.11% on July 6.

The Korea Real Estate Board explained, "While the upward trend in mid-to-low-priced complexes continued, the rise slowed due to decreased transactions, and some urgent sale properties appeared in certain high-priced complexes."

The Gangnam 4 districts (Gangnam, Seocho, Songpa, and Gangdong) saw a significant decrease in buying demand due to the burden of property taxes and fatigue from previous price increases. Gangdong-gu (0.01%) and Gangnam-gu (0.01%) showed slight increases mainly in some older and undervalued complexes but overall showed weakness, while Songpa-gu (0.00%) and Seocho-gu (0.00%) maintained a stable stance amid cautious market sentiment.

Elsewhere, Dongjak-gu (0.00%), Guro-gu (0.01%), Nowon-gu (0.01%), Dobong-gu (0.01%), and Yongsan-gu (0.01%) also showed stagnation, with other autonomous districts recording increases of 0.01% to 0.03%. Compared to 2-3 weeks ago, the rise rates have significantly slowed.

Sejong, which saw a sharp 1.58% surge in apartment prices last week, rose only 0.66% this week, with the increase rate dropping to less than half. The Korea Real Estate Board analyzed, "While areas such as Goun and Areum-dong within the Happy City, which had been relatively undervalued, and some older complexes in Jochiwon mainly saw increases, the overall rise was reduced due to fatigue from the rapid surge."

However, Sejong's rental prices increased by 1.46% compared to 1.39% the previous week, expanding the rise. This is interpreted as reflecting expectations for the administrative capital relocation and the shortage of rental listings.

Rental Market Still Unstable... Continued Shortage of Listings Due to Lease Protection Act

Seoul apartment rental prices rose by 0.11%, maintaining a high increase rate, though slightly lower than last week's 0.12%. The implementation of the rent ceiling system and the right to request contract renewal at the end of last month has worsened the shortage of listings. Additionally, with stricter owner occupancy requirements, rental prices are soaring in areas with good transportation access or educational environments.

In Gangdong-gu (0.18%), rental prices rose mainly in complexes with good living environments such as Gangil, Amsa, and Godeok-dong. Seocho-gu (0.16%) saw increases centered on Seocho-dong, known for its educational environment, and Jamwon-dong, where relocation demand due to redevelopment projects exists. Songpa-gu (0.16%) rose in Jamsil, Sincheon, and Pungnap-dong, while Gangnam-gu (0.15%) increased mainly in older complexes in Gaepo, Daechi, and Dogok-dong.

North of the Han River, Seongbuk-gu (0.16%) rose mainly in older complexes in Gireum New Town and Jongam-dong, and Mapo-gu (0.15%) showed a clear upward trend in major complexes with good living environments such as Gongdeok, Changjeon, and Ahyeon-dong.

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