Apartment Prices Remain Unstable Until Year-End... Seoul's Increase Expands for 3 Consecutive Weeks

Korea Real Estate Board December 4th Week Apartment Price Trends
Seoul Apartment Price Increase Rate 0.05%→0.06%
Gangnam 4 Districts Recovering Uptrend... Songpa-gu 0.11%
Buyers Move to Seoul as Local Regulation Areas Are Restricted

(Photo by Yonhap News)

[Asia Economy Reporter Moon Jiwon] The rate of increase in Seoul apartment prices has expanded for three consecutive weeks. In particular, the upward trend in the Gangnam area is becoming steeper. As the government newly designated most major regions nationwide as regulated areas to block the balloon effect, buying demand is gathering again in Seoul.

According to the weekly apartment price trend for the fourth week of December announced by the Korea Real Estate Board on the 31st, as of the 28th, Seoul apartment prices rose by 0.06% compared to the previous week. This marks an expansion in the rate of increase for three consecutive weeks following 0.03% in the first week of December, 0.04% in the second week, and 0.05% in the third week.

The Korea Real Estate Board explained, "With the implementation of credit loan management measures and concerns about an economic downturn due to the spread of the novel coronavirus (COVID-19), apartment prices rose mainly in areas with redevelopment expectations in the Gangnam area, and in areas with transportation benefits or mid-to-low price ranges in the Gangbuk area."

In Seoul, the apartment price increase was clear in the four Gangnam districts (Gangnam, Seocho, Songpa, and Gangdong). Songpa-gu (0.11%) rose mainly around Sincheon and Munjeong-dong near the land transaction permission zone, and Seocho-gu (0.10%) increased mainly in new buildings in Banpo-dong and redevelopment in Bangbae-dong.

Gangnam-gu (0.09%) and Gangdong-gu (0.10%) also showed significant increases. Outside the Gangnam area, Gwangjin and Mapo-gu rose by 0.08% compared to the previous week, while other areas mostly showed increases of 0.04% to 0.06%.

National apartment prices rose by 0.28%, slightly narrowing from 0.29% the previous week. Although the rate of increase expanded in Seoul and the metropolitan area, the rise in other regions such as the five major metropolitan cities (0.48%→0.45%) and provinces (0.37%→0.33%) was reduced.

In fact, Incheon (0.22%→0.26%) and Gyeonggi-do (0.31%→0.32%) continue to see upward trends in apartment prices. Paju-si in Gyeonggi-do (0.80%) saw a reduced rate of increase after being designated as a regulated area on the 18th, but prices are still rising relatively significantly, and the increase in Goyang-si, including Ilsan (0.90%), is also large. In Incheon, Yeonsu-gu (0.68%) is leading the rise in housing prices.

On the other hand, metropolitan cities in the provinces such as Ulsan (0.62%→0.60%), Gwangju (0.29%→0.18%), and Busan (0.61%→0.58%) are showing weakening buying demand after being designated as regulated areas. The apartment price increase rate in Uichang-gu, Changwon, which is designated as a speculative overheating district, also narrowed from 0.50% to 0.42%. However, Yangsan-si in Gyeongnam, which was not designated as a regulated area, is showing an overheated atmosphere as the increase rate expanded from 0.91% to 1.07%.

The last shantytown in the Gangnam area of Seoul, Guryong Village, stands in stark contrast to the dazzling high-rise apartments. Photo by Mun Ho-nam munonam@

In the jeonse market, the rate of increase has somewhat narrowed but overall remains similar to the previous week. Seoul apartment jeonse prices rose by 0.13%, narrowing from 0.14% the previous week. The upward trend continued mainly in areas with good access to subway stations or good school districts, but the rate of increase in some areas that had surged rapidly in a short period began to slow, and listings are accumulating.

Since the implementation of the jeonse and monthly rent cap system and the right to request contract renewal at the end of July, fatigue from the rapid rise in a short period has accumulated, and seasonal factors are also analyzed to be at play.

However, in Seoul, jeonse prices rose significantly in Mapo-gu (0.20%), Yongsan-gu (0.19%), Eunpyeong-gu (0.15%), and Nowon-gu (0.14%), and the upward trend was also strong in the Gangnam area, including Gangnam-gu (0.17%), Seocho-gu (0.18%), Songpa-gu (0.17%), and Gangdong-gu (0.15%).

Gyeonggi-do recorded the same 0.25% increase as the previous week. Namyangju-si (0.43%) saw significant jeonse price increases in mid-to-low price complexes in Dasan New Town and Hwado and Jinjeop-eup, Goyang-si (0.43%) in areas with good residential conditions such as transportation and school districts, and Seongnam Bundang-gu (0.42%) in relatively affordable areas such as Gumi, Sunae, and Jeongja-dong.

With the jeonse price increase rates slowing in provinces (0.37%→0.35%) and the five major metropolitan cities (0.47%→0.42%), the national increase rate also narrowed from 0.30% to 0.29%. In Sejong (1.96%→1.81%), although the rate of increase slightly slowed compared to last week, the upward trend continues mainly in major areas such as Dodam and Jongchon-dong within the Happy City.

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