Seoul Jeonse Price Increase Rate Higher Than Sale Prices Since Early August

This Week's Seoul Apartment Prices Up 0.04%
Price Increase Narrowing in Gangnam Area Apartments

[Asia Economy Reporter Kim Yuri] Amid a decline in transactions due to buyers' cautious stance, the Seoul apartment sales market maintained the same rate of change (0.04%) for two consecutive weeks. While the price increase widened in areas with many mid- to low-priced apartments such as Nowon and Gwanak, the increase narrowed mainly in the Gangnam area. Gangnam, Songpa, and Gangdong saw a reduced rate of change in sales prices compared to the previous week, and Seocho maintained a flat rate (0.00%) following last week. In the jeonse market, the shortage of listings continues, causing Seoul apartment jeonse prices to exceed the sales price increase since early August.

According to Real Estate 114 on the 16th, the rate of change in Seoul apartment sales prices recorded 0.04%. Reconstruction and general apartments rose by 0.01% and 0.04%, respectively. Additionally, Gyeonggi and Incheon increased by 0.09%, and new towns rose by 0.08%, all showing an expanded rate of increase compared to last week.

In Seoul, large apartment complexes mainly increased in Gangdong (0.10%), Gwanak (0.09%), Nowon (0.09%), Guro (0.08%), Songpa (0.07%), Gangseo (0.05%), Gwangjin (0.05%), Seongbuk (0.04%), Yangcheon (0.04%), and Yeongdeungpo (0.04%). In Gangdong, Godeok-dong's Godeok Gracious and Godeok Raemian Hillstate rose by 5 million to 25 million KRW. In Gwanak, Bongcheon-dong's Seonghyeon Dong-A and Sillim-dong's Samsungsan Jugong 3rd Complex increased by 5 million to 10 million KRW. Nowon saw increases of 5 million to 10 million KRW in Sanggye-dong's Boram and Sanggye Jugong 10th Complex, and Hagye-dong's Hanshin Cheonggu. Guro's Guro-dong Guro Doosan and Sindorim-dong Sindorim 4th e-Pyeonhan Sesang rose by 2.5 million to 25 million KRW. Songpa's Bangi-dong Olympic Athletes' Village and Jamsil-dong Woosung 1, 2, 3 complexes, Jamsil Els, and Lake Palace increased by 10 million to 50 million KRW.

New towns showed strength mainly in areas with good access to Gangnam. By region, Wirye (0.19%), Dongtan (0.12%), Bundang (0.09%), Gimpo Hangang (0.09%), Gwanggyo (0.07%), Ilsan (0.06%), and Pyeongchon (0.06%) rose in order. In Wirye, the large apartment complex Wirye Lotte Castle in Hagam-dong rose by 20 million KRW. Dongtan's Jangji-dong Dongtan Xi Famille, Yeongcheon-dong Dongtan Bando Yubora Ivy Park 2nd Complex, and Osan-dong Bando Yubora Ivy Park 3.0 increased by 10 million KRW. Bundang's Pangyo-dong Pangyo Won Village 9th Complex, Jeongja-dong Hansol Jugong 4th Complex, and Yatap-dong Jangmi Hyundai rose by 10 million to 20 million KRW. Gimpo Hangang's Gurae-dong Gimpo Hangang I-Park and Janggi-dong Chodang Village Unam Firstville increased by 2.5 million to 10 million KRW.

Gyeonggi and Incheon rose in the order of Namyangju (0.15%), Seongnam (0.15%), Hanam (0.14%), Yongin (0.13%), Hwaseong (0.13%), Goyang (0.12%), Gwangmyeong (0.12%), and Suwon (0.12%). In Namyangju, Dasan-dong Namyang i-Good House, Pyeongnae-dong Pyeongnae Village Jungheung S-Class 1st Complex, and Byeollae-myeon Cheonghak Jugong 2nd Complex increased by 2.5 million to 20 million KRW. Seongnam's Sanggyeowon-dong Seongyeong, Dochon-dong Humansia Seom Village 3rd Complex, and Taepyeong-dong Gachon University Station Dongbu Centreville 1st and 2nd Complexes rose by 5 million to 10 million KRW. Hanam's Deokpung-dong Deokpung Byeoksan Blooming, Hanam Xi, and Changwoo-dong Kkumdongsan Sinan increased by 10 million KRW. Yongin's Sinbong-dong Sinbong Xi 2nd Complex, Sanghyeon-dong Manhyeon Village 1st Complex Lotte Castle, and Seongbok-dong Seongdong Village LG Village 1st Complex rose by 5 million to 15 million KRW.

The metropolitan area's jeonse market continued to experience supply-demand imbalance, with Seoul rising by 0.11%. Gyeonggi, Incheon, and new towns increased by 0.12% and 0.08%, respectively.

In Seoul's jeonse market, among 25 districts, 12 districts saw an expanded rate of increase compared to the previous week. By region, Gangdong (0.31%), Nowon (0.23%), Songpa (0.22%), Gwanak (0.17%), Dobong (0.16%), and Guro (0.14%) rose in order. In Gangdong, Godeok-dong's Godeok Gracious and Godeok Raemian Hillstate rose by 5 million to 25 million KRW. Nowon saw increases of 5 million to 20 million KRW in Sanggye-dong Byeoksan, Boram, Sanggye Jugong 16th Complex, and Hagye-dong Hanshin Cheonggu. Songpa's Bangi-dong Olympic Athletes' Village, Jamsil-dong Jamsil Els, and Lake Palace rose by 10 million to 25 million KRW. Gwanak's Sillim-dong Sillim Hyundai, Sillim Prugio, and Bongcheon-dong Doosan increased by 5 million to 10 million KRW. Dobong's Chang-dong Sanggye Jugong 17th, 18th, and 19th Complexes rose by 5 million to 10 million KRW.

New towns rose in the order of Wirye (0.20%), Sanbon (0.18%), Pyeongchon (0.12%), Bundang (0.08%), Ilsan (0.07%), and Dongtan (0.06%). Gyeonggi and Incheon showed an upward trend centered on the 3rd phase new town planned areas and regions with good transportation conditions. By region, Namyangju (0.22%), Gwangmyeong (0.21%), Hanam (0.18%), Goyang (0.17%), Guri (0.16%), Ansan (0.16%), Anyang (0.16%), Uiwang (0.16%), Osan (0.16%), and Hwaseong (0.16%) rose. In Namyangju, Dasan-dong Namyang i-Good House, Pyeongnae-dong Pyeongnae Village Kumho Eoullim, and Jinjeop-eup Haemil Village Sinan Insville increased by 5 million to 10 million KRW. Gwangmyeong's Cheolsan-dong Cheolsan Raemian Xi, Jugong 12th Complex, and Haan-dong Jugong 8th Complex rose by 10 million KRW. Hanam's Deokpung-dong Deokpung Byeoksan Blooming, Hanam Xi, and Changwoo-dong Kkumdongsan Sinan increased by 5 million to 10 million KRW. Goyang's Siksa-dong We City Blooming 3rd Complex, Daehwa-dong Kintex Kkum Eggreen, and Dongsan-dong Dongsan Village 22nd Complex Hoban Verdiem rose by 5 million to 10 million KRW.

With government measures and the spread of the COVID-19 pandemic coinciding, the metropolitan apartment market has continued to contract in transactions since August. Ye Kyung-hee, senior researcher at Real Estate 114, predicted, "Although the price increase trend of high-entry-barrier apartments in Gangnam is slowing down, demand is still flowing into mid- to low-priced apartments in Gwanak, Nowon, and Guro, so the upward trend will continue for some time."

The jeonse market saw an expanded rate of increase as the shortage of jeonse intensified after the revision of the lease law and the autumn moving season demand continued. Senior researcher Ye diagnosed, "As the jeonse shortage worsens and tenants face difficulties, the government has stated it may consider additional measures if necessary, but since the supply-demand imbalance is unlikely to be resolved immediately, the jeonse shortage is likely to expand throughout the metropolitan area."

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