"Reconstruction in Gangnam Area 'Stirs'... This Week, Apartment Price Increase Widens in Seoul Metropolitan Area"

Sustained Mid-Low Price Buying Demand in Seoul Outskirts... Greater Seoul Area Housing Prices 'Matching Rise'
"Rising Increase Due to School District Demand Amid Shortage of Jeonse Listings"

[Asia Economy Reporter Yuri Kim] Due to a shortage of jeonse (long-term lease) listings, demand for mid- to low-priced housing sales continues, driving Seoul apartment prices to soar. The Gangnam area redevelopment market also saw an expanded rise due to expectations from major complex redevelopment projects. Although the rise in Gimpo, Gyeonggi Province, designated as a regulated area, has somewhat slowed, Paju, which remains a non-regulated area, saw a significant increase. In the jeonse market, the shortage of jeonse listings persists, with notable price increases in areas with strong school district demand.

According to Real Estate 114 on the 11th, Seoul apartment sale prices rose by 0.10% this week, marking the third consecutive week of expanding gains. Redevelopment apartments increased by 0.11%, while general apartments rose by 0.10%. Gyeonggi-Incheon and new towns also saw increases of 0.10% and 0.17%, respectively, with widening gains.

In Seoul, demand for mid- to low-priced apartments in outer areas remains strong, and expectations from major redevelopment projects have expanded the price increase. By region, prices rose in the following order: Gwangjin (0.22%), Guro (0.18%), Songpa (0.18%), Gangdong (0.17%), Dobong (0.16%), Dongdaemun (0.16%), Seongbuk (0.13%), and Jungnang (0.13%). In Gwangjin, the redevelopment push for Gwangjang Geukdong (following a safety diagnosis rating of D) caused surrounding apartment prices to rise. Apartments such as Gwangjang Geukdong 2nd Complex, Gwangjang Hyundai 8th and 9th Complexes, and Hwayang-dong Hyundai increased by 10 million to 75 million KRW. In Guro, where mid- to low-priced buying continued, Samho in Gaebong-dong, Hyundai 1st and 3rd Complexes in Sindorim-dong, Guro Doosan in Guro-dong, and Gyeongnam Honorsville in Oryu-dong rose by 5 million to 25 million KRW. In Songpa, Garak-dong Ssangyong 2nd Complex, Heliocity, Jamsil-dong Asia Athletes' Village, and Jamsil Jugong 5th Complex increased by 15 million to 30 million KRW. In Gangdong, Amsa-dong Gwangnaru Samsung, Seongnae-dong Seongnae Samsung, Amsa-dong Seonsa Hyundai, and Dunchon-dong Dunchon Jugong 1st and 4th Complexes rose by 10 million to 50 million KRW. Prices rose in Dunchon Jugong as the redevelopment project restarted with the appointment of the union head.

In new towns, the balloon effect from Gimpo regulations caused significant increases in Ilsan New Town and Paju Unjeong. By region, prices rose in Ilsan (0.36%), Pyeongchon (0.20%), Paju Unjeong (0.20%), Dongtan (0.20%), Gimpo Hangang (0.20%), Jungdong (0.19%), Wirye (0.17%), and Bundang (0.11%). In Ilsan, Dongshin in Hugok 8th Complex, Gangseon 4th Complex Dongshin in Juyop-dong, Gangchon 7th Complex Seongyeong Kolon in Madu-dong, and Baeksong 7th Complex Imkwang in Baekseok-dong rose by 5 million to 10 million KRW. In Pyeongchon, Kkum Hyundai, Chowon Daewon, and Kkum Hanshin in Pyeongchon-dong increased by 5 million to 20 million KRW. In Paju Unjeong, Lotte Castle Parktown in Yadang-dong, Humancia in Hanbit Village 8th Complex, and Hanra Vivaldi in Garam Village 7th Complex in Wadong-dong rose by 5 million to 10 million KRW.

In Gyeonggi-Incheon, prices rose in Paju (0.24%), Uiwang (0.21%), Goyang (0.19%), Namyangju (0.18%), Bucheon (0.17%), Anyang (0.16%), and Gimpo (0.15%). In Paju, Dongmoon Good Morning Hill in Cheongseok Village 8th Complex in Dayul-dong, World Meridian in Sannae Village 8th Complex in Mokdong-dong, and Daeyoung Geonil Jangmi 6th Complex in Geumchon-dong increased by 2.5 million to 10 million KRW. In Uiwang, LG Jindallae in Ojeon-dong, Humancia Cheonggye Village 4th Complex in Cheonggye-dong, Bando Bora Village 1st Complex in Naeson-dong, and Uiwang Naeson e-Pyeonhansesang rose by 5 million to 15 million KRW. In Goyang, Kintex Kkum Eggreen in Daehwa-dong, Ilsan 3rd Hyundai Hometown in Ilsan-dong, Tanhyeon Hyundai Hanshin 6th Complex in Tanhyeon-dong, and Dongmoon 2nd Complex in Ilsan-dong rose by 10 million to 20 million KRW.

In the Seoul metropolitan area jeonse market, due to a shortage of jeonse listings, Seoul prices rose by 0.19%, while Gyeonggi-Incheon and new towns increased by 0.11% and 0.17%, respectively.

In Seoul's jeonse market, prices rose in the following order: Songpa (0.35%), Gangnam (0.23%), Gangdong (0.22%), Guro (0.22%), Yangcheon (0.20%), Yongsan (0.19%), Dongdaemun (0.18%), and Yeongdeungpo (0.18%). In Songpa, Garak-dong Heliocity, Jamsil-dong Jamsil Els, Woosung 1st, 2nd, and 3rd Complexes, and Jamsil Parkrio in Sincheon-dong rose by 5 million to 50 million KRW. In Gangnam, Daechi-dong Ssangyong 1st Complex, Raemian Daechi Palace 1st Complex, Seongyeong 1st and 2nd Complexes, Hanbo Mido Mansion 1st Complex, and Dogok-dong Dogok 2nd I-Park rose by 25 million to 50 million KRW. In Gangdong, Sindonga in Myeongil-dong, Godeok I-Park in Godeok-dong, and Seonsa Hyundai in Amsa-dong increased by 10 million to 35 million KRW.

In new towns, prices rose in Gimpo Hangang (0.29%), Ilsan (0.28%), Jungdong (0.25%), Dongtan (0.23%), Wirye (0.21%), Sanbon (0.17%), and Paju Unjeong (0.17%). In Gimpo Hangang, Gimpo Hangang I-Park in Gurae-dong and Woomeerin in Hangaram Village rose by 10 million KRW. In Ilsan, Dongshin in Hugok 8th Complex, Gangseon 4th Complex Dongshin in Juyop-dong, Hosu 3rd Complex Samhwan Yuwon in Janghang-dong, and Baekma 1st Complex Samsung in Madu-dong increased by 5 million to 10 million KRW. In Jungdong, Sarang Byeoksan, Sarang Cheonggu, Eunha Hyosung in Jungdong, and Eunha Dongbu rose by 5 million to 10 million KRW.

In Gyeonggi-Incheon, prices rose in Paju (0.21%), Namyangju (0.20%), Suwon (0.17%), Ansan (0.16%), Anyang (0.16%), Uiwang (0.15%), Siheung (0.13%), Gimpo (0.12%), Yongin (0.12%), and Osan (0.12%). In Paju, Dongmoon Good Morning Hill in Cheongseok Village 8th Complex in Dayul-dong, World Meridian in Sannae Village 8th Complex in Mokdong-dong, and Saekkot Village Tturanchae 1st Complex in Geumchon-dong rose by 2.5 million to 10 million KRW. In Namyangju, Pyeongnae Village Kumho Eoullim in Pyeongnae-dong, Geumgang Pentarium in Jinjeop-eup, Toegyewon Hillstate in Toegyewon-dong, and Hyundai in Wabu-eup increased by 5 million to 10 million KRW. In Suwon, Kkotmoe Yangji Village Hyundai in Hwaseo-dong, Gwanggyosan Switzen in Jowon-dong, and Suwon Gwonseon Xi e-Pyeonhansesang in Gwonseon-dong rose by 10 million to 15 million KRW.

In Seoul and the metropolitan area, the shortage of jeonse listings has shifted jeonse demand toward purchasing mid- to low-priced homes, expanding the rise in housing prices. In particular, demand flowing into relatively less expensive areas is raising concerns about a 'matching height' style price increase. Recently, the buying sentiment for redevelopment apartments in the Gangnam area, which had been quiet for some time, is stirring, maintaining an upward trend. Despite the seasonal off-season, the jeonse market continues to rise. Lim Byung-chul, senior researcher at Real Estate 114, pointed out, "Next year’s Seoul apartment supply will be nearly half of this year’s, increasing instability in the jeonse market," adding, "If public jeonse housing supplied by the government fails to absorb jeonse and monthly rent demand, jeonse price instability could worsen."

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