"Supply Measures and COVID-19 Resurgence, Buyers Hold Back" Seoul Apartment Prices Up 0.06%

[Asia Economy Reporter Kim Yuri] Since September, the rate of increase in apartment prices in Seoul has been moderating. This is attributed to the combined effects of the government's supply policy announcements and the resurgence of COVID-19, which have led to increased demand from buyers adopting a wait-and-see approach. In particular, the rise in housing prices in mid- to low-priced apartment-dense areas has slowed, with Gangbuk and Geumcheon recording flat prices (0.00%) this week. However, sellers are maintaining their asking prices, so the upward price trend appears to continue. The jeonse (long-term lease) market still faces a shortage of listings, but inquiries have decreased due to COVID-19 infection concerns, resulting in a slight slowdown in price increases.

According to Real Estate 114 on the 18th, the rate of change in Seoul apartment sale prices recorded 0.06%, down from 0.07% the previous week. Reconstruction and general apartments rose by 0.04% and 0.06%, respectively. Additionally, Gyeonggi and Incheon increased by 0.07%, and new towns rose by 0.04%.

In Seoul, Gangdong (0.13%), Seongbuk (0.13%), Songpa (0.12%), Dobong (0.09%), Yangcheon (0.08%), Yongsan (0.08%), and Eunpyeong (0.08%) saw price increases. In Gangdong, mainly large complexes with recent occupancy years rose, with Godeok-dong's Godeok Gracious, Myeongil-dong's Raemian Myeongil Station Solvenue, and Dunchon-dong's Dunchon Prugio increasing by 5 million to 20 million KRW. In Seongbuk, large complexes such as Jongam-dong's Raemian La Scent and SK, Sangwolgok-dong's Donga Ecovil, and Seokgwan-dong's Raemian Atrich rose by 5 million to 10 million KRW. Songpa, designated as a land transaction permission zone, has sparse transactions, but homeowners are holding firm on asking prices. Jamsil-dong's Jamsil Els, Lake Palace, Trizium, and Sincheon-dong's Jamsil Parkrio increased by 10 million to 50 million KRW. Dobong's Chang-dong Sanggye Jugong Complex 19, Jugong Complex 3, and Bukhansan I-Park rose by 2.5 million to 10 million KRW. Yangcheon’s Mok-dong New Town complexes 3, 5, and 7 increased by 10 million to 25 million KRW.

In new towns, Pyeongchon (0.08%), Bundang (0.06%), Sanbon (0.06%), Dongtan (0.06%), Ilsan (0.03%), Gimpo Hangang (0.03%), and Gwanggyo (0.03%) saw price increases. In Pyeongchon, large-area units such as Pyeongchon-dong's Kkumdong-A, Kkum Hanshin, and Hogye-dong's Mokryeon Complex 8 Kyungnam rose by 5 million to 7.5 million KRW. Bundang's Bundang-dong Saetbyeol Woobang, Yatap-dong Jangmi Kolon, and Jeongja-dong Jeongdeun Donga Complex 1 increased by 5 million to 10 million KRW. Sanbon's Sanbon-dong Gaya Complex 5 Jugong 1st and Jugong Complex 11 rose by 2.5 million to 5 million KRW. Dongtan's Bansong-dong Dongtan Solbit Village Ssangyong Yega and Cheonggye-dong Dongtan 2 New Town Central Prugio increased by 5 million to 10 million KRW.

In Gyeonggi and Incheon, areas with transportation and redevelopment benefits led the increases. By region, Namyangju (0.14%), Gwangmyeong (0.13%), Seongnam (0.12%), Hanam (0.10%), Suwon (0.09%), Yongin (0.09%), Incheon (0.08%), and Gunpo (0.08%) rose in that order. In Namyangju, apartment prices around Pyeongnae Hopyeong Station, where the metropolitan area express railway (GTX)-B line will be built, increased. Pyeongnae-dong's Pyeongnae Village Shinmyeong Skyview, Pyeongnae Village Kumho Eoullim, and Pyeongnae Village Pyeongnae 2nd Daeju Parkville rose by 10 million KRW. In Gwangmyeong, Gwangmyeong-dong Gwangmyeong Hanjin Town, Haan-dong Gwangmyeong Doosan We've Trizium, and Jugong Complex 10 increased by 5 million to 10 million KRW. In Seongnam, large-area units such as Sinheung-dong Shindonga Paradium and Hadaewon-dong Seongnam Xi rose by 5 million to 10 million KRW. In Hanam, near the extension of Subway Line 5, Sinjang-dong Daemyeong Riverside Town, Hanam Union City Aileen's Garden, and Hyundai Hometown increased by 10 million to 20 million KRW.

The metropolitan area jeonse market continued to face a shortage of listings, with Seoul rising by 0.10%. Gyeonggi, Incheon, and new towns increased by 0.09% and 0.05%, respectively.

In Seoul's jeonse market, demand flowed mainly into large apartment complexes, with Gangdong (0.39%), Nowon (0.23%), Songpa (0.19%), Seongbuk (0.18%), Yeongdeungpo (0.16%), Yangcheon (0.14%), and Gwanak (0.13%) rising in that order. In Gangdong, Godeok-dong's Godeok Gracious and Godeok Raemian Hillstate, and Dunchon-dong's Dunchon Prugio increased by 15 million to 25 million KRW. In Nowon, Sanggye-dong Sanggye Jugong Complex 3, Wolgye-dong Miryung, Miseong, Samho Complex 3, and Hagye-dong Hanshin Cheonggu rose by 5 million to 15 million KRW. In Songpa, Jamsil-dong Jamsil Els, Sincheon-dong Jamsil Parkrio, and Jangji-dong Songpa Pine Town Complex 7 increased by 20 million to 25 million KRW. In Seongbuk, large complexes such as Hawolgok-dong Wolgok Doosan We've, Sangwolgok-dong Donga Ecovil, and Jongam-dong SK rose by 5 million to 10 million KRW.

In new towns, Ilsan (0.10%), Dongtan (0.08%), Gwanggyo (0.07%), Bundang (0.05%), Sanbon (0.05%), and Pyeongchon (0.03%) saw increases. In Ilsan, apartments around Juyop Station on Subway Line 3, such as Juyop-dong Munchon Complex 16 New Samik, Gangseon Complex 15 Boseong, and Ilsan-dong Hugok Complex 9 LG and Lotte, rose by about 5 million KRW. In Dongtan, second-phase new town apartments such as Cheonggye-dong Dongtan Station Shibeom Risu Ville, Dongtan 2 Hoban Verdiem The Class, and Songdong Dongtan 2 New Town House D The Lake increased by 5 million to 10 million KRW. In Gwanggyo, Woncheon-dong Gwanggyo Doosan We've rose by 5 million to 10 million KRW. In Bundang, Yatap-dong Jangmi Dongbu and Jangmi Kolon, and Gumi-dong Mujigae Complex 2 LG increased by 5 million to 10 million KRW.

In Gyeonggi and Incheon, the 3rd phase new town areas showed strength, with Namyangju (0.22%), Hanam (0.22%), Gwacheon (0.20%), Gwangmyeong (0.17%), Uiwang (0.17%), Ansan (0.14%), Suwon (0.12%), and Yongin (0.12%) rising in that order. In Namyangju, Dasan-dong Namyang i-Good House, Pyeongnae-dong Pyeongnae Village Jugong, and Pyeongnae Village Pyeongnae 2nd Daeju Parkville increased by 5 million to 10 million KRW. In Hanam, Sinjang-dong Hyundai Hometown, Daemyeong Riverside Town, and Hanam Union City Aileen's Garden rose by 5 million to 15 million KRW. In Gwacheon, Jungang-dong Jugong Complex 10 and Byeollyang-dong Raemian Sur increased by 10 million to 20 million KRW. In Gwangmyeong, relocation demand from the reconstruction of Cheolsan Jugong Complex 8 moved the market, with Cheolsan-dong Jugong Complex 12, Cheolsan Raemian Xi, and Haan-dong Gwangmyeong Doosan We've Trizium rising by 10 million to 15 million KRW.

Following the resurgence of COVID-19 and with the Chuseok holiday just two weeks away, both the sale and jeonse markets in Seoul have slowed down. The sales market shows a stronger wait-and-see stance among buyers. Yeokyunghee, senior researcher at Real Estate 114, said, "Due to concerns about rapid price increases and the government's regulatory stance, buyers are hesitant to make purchases. If the pre-sale of 3rd phase new towns starting next year disperses demand and the market remains subdued, adjusted listings may be released, continuing the slowdown in price growth."

The metropolitan area jeonse market is led by large apartment complexes in 3rd phase new towns and areas with good transportation conditions. Due to the implementation of the new lease law (contract renewal request right, rent ceiling system), the shortage of jeonse listings is intensifying, and the imbalance in supply and demand is expected to continue causing instability for some time.

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