Paju and Ulsan 'Balloon Effect' Continues... Seoul Gangnam Area Also Sees Increased Growth Rate

Korea Real Estate Board December First Week Apartment Price Trends

Seoul Metropolitan Area, Provinces, and Metropolitan Cities See Increased Sale Price Growth
Especially Paju, Ulsan, Busan Non-Regulated Areas Rise↑
Seoul Gangnam Up 0.05%... Largest Since July
Jeonse Market Still Unstable... Sejong 1.57%

Apartment Complex in Gangbuk Viewed from Namsan (Photo by Yonhap News)

[Asia Economy Reporter Moon Jiwon] The rate of increase in apartment sale prices in the metropolitan area and provinces expanded further this week. Even in Seoul's Gangnam area, where buying demand had slowed due to successive regulations, the buying sentiment is gradually recovering.

According to the weekly apartment price trend for the first week of December announced by the Korea Real Estate Board on the 10th, as of the 7th, the apartment sale price increase rates in the metropolitan area (0.16%→0.18%), provinces (0.31%→0.35%), and the five major metropolitan cities (0.44%→0.50%) all grew compared to the previous week.

In the metropolitan area, only Seoul recorded the same 0.03% increase as last week, while Incheon’s increase expanded from 0.13% to 0.15%, and Gyeonggi Province’s from 0.24% to 0.27%.

In Gyeonggi Province, the rise in Paju City (1.18%) was notable due to the 'balloon effect' in non-regulated areas. Paju’s apartment sale prices increased mainly around Unjeong New Town, which benefits from improved transportation environments such as the Metropolitan Express Train (GTX)-A and the extension of Line 3, and the area near Geumchon-dong station.

Similar to Paju, Ulsan (0.76%), where the balloon effect is growing, saw apartment sale prices rise centered on Nam-gu (1.15%), which has school district demand, Jung-gu (0.59%), and Buk-gu (0.65%), which have high demand for new constructions near the innovation city.

In Busan (0.58%), Gangseo-gu (1.32%) saw increases mainly in new constructions in Myeongji-dong, where there is development anticipation for the international new town, and Saha-gu (0.79%) rose mainly in undervalued new and station-area complexes. Busanjin-gu (0.78%) also experienced price increases in station-area complexes.

The government designated seven areas as adjusted target areas on the 19th of last month, including parts of Gimpo City in Gyeonggi Province, Haeundae, Suyeong, Dongnae, Yeonje, and Nam-gu in Busan, and Suseong-gu in Daegu. Since then, the housing price rise has accelerated not only in Paju adjacent to Gimpo but also in non-regulated autonomous districts in Busan.

Additionally, Goyang City (0.78%) rose mainly in Ilsanseo-gu (0.97%), Ilsandong-gu (0.68%), and Deogyang-gu (0.67%), and in Incheon, price increases continued in station-area and mid-to-low price complexes in Namdong-gu (0.28%), Bupyeong-gu (0.19%), and Gyeyang-gu (0.15%).

Seoul, which is showing signs of recovering buying demand recently, saw price increases mainly in the Gangnam area with expectations of progress in redevelopment projects and in mid-to-low price complexes on the outskirts.

In particular, Gangnam-gu rose 0.05% this week, marking the highest increase since July 20 (0.06%). Although buying demand had slowed due to the government's strengthened property tax and expanded regulations, housing prices are rising as redevelopment expectations grow, such as the establishment of a union for Gaepo Jugong 5 Complex.

Songpa-gu (0.04%), Seocho-gu (0.03%), and Gangdong-gu (0.03%) are also gradually recovering their increase rates, and mid-to-low price complexes on the outskirts of Seoul, such as Gwanak-gu (0.05%), Nowon-gu (0.05%), and Gangseo-gu (0.04%), continue to maintain an upward trend.

A real estate agency in Songpa-gu, Seoul (Photo by Yonhap News)

The jeonse (long-term lease) market also showed generally similar rates of increase as last week, displaying an unstable pattern.

Seoul’s apartment jeonse prices rose 0.14%, slightly down from 0.15% the previous week. Amid continued shortage of listings, jeonse prices steadily increased in complexes with good residential conditions such as school districts or close proximity to workplaces. However, the overall increase narrowed due to the seasonal off-season effect.

In Gyeonggi Province, apartment jeonse prices rose 0.27%, the same as the previous week. Goyang Deogyang-gu (0.57%), Seongnam Bundang-gu (0.44%), and Namyangju City (0.43%) saw significant increases, while Gwacheon City (-0.01%) experienced a drop in jeonse prices this week due to new move-ins of about 1,300 units at Central Park Prugio Summit.

In Ulsan (0.88%), with expected reductions in move-in volumes from about 2,700 units this year to about 800 units next year, jeonse prices rose sharply in Nam-gu (1.10%), Ulju-gun (0.89%), and Dong-gu (0.87%).

Sejong City, where housing prices are rising sharply due to the National Assembly relocation issue, also saw its jeonse price increase rate expand from 1.48% to 1.57%. The Korea Real Estate Board explained that "the rise was mainly in major new constructions within the Happy City, such as Areum, Jongchon, and Dodam-dong."

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