This Week's Seoul Apartment Sale Price Increase Slightly Up... Jeonse Prices Continue Soaring

[Asia Economy Reporter Kim Yuri] The upward trend in Seoul apartment sale prices has slightly increased. Since there were signs of a slowdown in the rise over the past six weeks, it remains to be seen whether this trend reversal will be sustained. Demand for home purchases continues to flow into areas in Seoul such as Nowon and Geumcheon, where mid- to low-priced apartments under 900 million KRW are concentrated. Meanwhile, the jeonse prices, which have been rising at more than twice the rate of sale prices, have further expanded their increase, clearly showing an upward trend. Among Seoul's 25 districts, 16 saw a larger increase compared to the previous week. Tenants are complaining about the shortage of jeonse properties, and the scarcity continues, causing the government to deepen its concerns about countermeasures.

According to Real Estate 114 on the 23rd, this week Seoul apartment sale prices recorded a 0.05% change rate, up 0.01 percentage points from the previous week. Reconstruction and general apartments rose by 0.03% and 0.05%, respectively. In addition, Gyeonggi and Incheon rose by 0.09%, and new towns by 0.08%, similar to last week.

In Seoul, the increases were in the order of Nowon (0.16%), Gangdong (0.10%), Jung-gu (0.09%), Gangnam (0.07%), Geumcheon (0.07%), Jungnang (0.07%), Gwanak (0.06%), Guro (0.06%), Songpa (0.06%), and Yangcheon (0.06%). In Nowon, the number of properties on the market has decreased, and homeowners are raising asking prices compared to the previous week. In Hagye-dong, Jangmi, Sangye-dong Boram, and Byeoksan rose by 5 to 10 million KRW. Gangdong continues its upward trend as demand persists despite high prices. In Godeok-dong, Godeok Raemian Hillstate and Cheonho-dong Hanshin rose by 5 to 25 million KRW. In Jung-gu, Sindang-dong Namsan Town and Chungmuro 4-ga Namsan Central Xi rose by 5 to 10 million KRW. In Gangnam, Daechi-dong Raemian Daechi Palace Complex 1 and Gaepo-dong Raemian Blestige rose by 25 to 50 million KRW.

In new towns, the increases were in the order of Pyeongchon (0.16%), Bundang (0.14%), Jungdong (0.13%), Gimpo Hangang (0.10%), Ilsan (0.09%), and Dongtan (0.03%). Overall, the number of properties for sale has decreased compared to the past, and occasional transactions are leading the market prices. In Pyeongchon, Gwan-yang-dong Hangaram Sekyung, Gongjak Booyoung, and Hogye-dong Mugunghwa Geonyeong rose by 10 million KRW. In Bundang, Seohyeon-dong Shibeom Hanyang and Gumi-dong Mujigae Complex 1 Daelim rose by 10 to 20 million KRW. In Jungdong, Jungdong Seorak Jugong and Sangdong Hanarum Dongwon rose by 5 to 10 million KRW.

In Gyeonggi and Incheon, the increases were in the order of Yongin (0.15%), Gwacheon (0.14%), Goyang (0.13%), Gwangmyeong (0.12%), Namyangju (0.12%), Gimpo (0.11%), and Anyang (0.10%). Yongin's demand continues to flow steadily, but the lack of suitable properties for sale has raised price levels. In Seongbok-dong Suji Seongbok Hyosung Harrington Court, Jukjeon-dong Dodam Village I-Park, and Sanghyeon-dong Kumho Bestville 3rd Complex 5 rose by 5 to 10 million KRW. In Gwacheon, Wonmun-dong Raemian Sure Complex 3 and Jungang-dong Jugong Complex 10 rose by 10 to 20 million KRW. In Goyang, Siksa-dong Wish City Ilsan Xi Complex 1 and Tanhyeon-dong Ilsan Edufore Prugio rose by 10 million KRW.

The metropolitan area jeonse market is suffering from a shortage of properties, with Seoul rising by 0.13%. Gyeonggi, Incheon, and new towns rose by 0.13% and 0.07%, respectively.

Despite the continued rise in jeonse prices in Seoul, the scarcity of properties has tenants rushing to sign contracts. By region, the increases were in the order of Nowon (0.29%), Songpa (0.25%), Gangnam (0.19%), Gangdong (0.19%), Dobong (0.19%), Geumcheon (0.17%), Gwanak (0.16%), and Eunpyeong (0.15%). In Nowon, Wolgye-dong Seongbuk Station Shindobrenyu, Junggye-dong Gyeongnam Honorsville, and Sangye-dong Byeoksan rose by 2.5 to 20 million KRW. In Songpa, Bangi-dong Olympic Athletes' Village, Jamsil-dong Trizium, and Lake Palace rose by 10 to 25 million KRW. In Gangnam, Yeoksam-dong Yeoksam E-Pyeonhansesang and Apgujeong-dong Shin Hyundai rose by 15 million KRW.

In new towns, the increases were in the order of Ilsan (0.20%), Jungdong (0.17%), Pyeongchon (0.12%), Gimpo Hangang (0.10%), Paju Unjeong (0.08%), and Pangyo (0.05%). In Ilsan, Ilsan-dong Hugok 12 Complex Jugong, Madu-dong Gangchon 1 Complex Donga, and Juyeop-dong Gangseon 19 Complex Woosung rose by 5 to 10 million KRW. In Jungdong new town, Jungdong Yeonhwa Ssangyong, Seorak Jugong, and Deogyu Jugong Complex 3 rose by 5 to 10 million KRW. In Pyeongchon, Gwanyang-dong Hangaram Silla and Hogye-dong Mugunghwa Geonyeong rose by 5 to 10 million KRW.

In Gyeonggi and Incheon, the increases were in the order of Gwangmyeong (0.18%), Gwacheon (0.17%), Yongin (0.17%), Goyang (0.16%), Namyangju (0.16%), Seongnam (0.15%), Ansan (0.14%), and Anyang (0.14%). In Gwangmyeong, Gwangmyeong-dong Jungang Heights Complex 3 rose by 5 million KRW, and Cheolsan-dong Cheolsan Raemian Xi rose by 10 to 15 million KRW. In Gwacheon, Wonmun-dong Raemian Sure Complex 3 and Jungang-dong Jugong Complex 10 rose by 10 to 15 million KRW.

Unlike the somewhat stable sale market, the jeonse market's price increase trend is significant. Yoon Ji-hae, chief researcher at Real Estate 114, said, "The government is rushing to prepare countermeasures, but in the jeonse market, where actual demand for residence moves, it is difficult to come up with sharp short-term measures from both supply and demand perspectives," adding, "This is why the current jeonse price rise is likely to continue for a considerable period." She further noted, "Considering that in the past, when jeonse prices rose for a long time, actual demand moved to the sale market, the stability of jeonse prices will significantly affect the sale market in the future."

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