Metropolitan Area Apartment Prices Rise Further... Soaring Regional Prices Slow Down

Korea Real Estate Board Apartment Price Trends for the First Week of January
Greater Increase in the Capital Region, Slower Rise in Local Areas
Buying Demand Shifts from Local Areas Back to the Capital Region
Small Decrease in Jeonse Price Increase... Seoul Remains Unchanged

(Photo by Yonhap News)

[Asia Economy Reporter Moon Jiwon] The rate of increase in apartment prices in the Seoul metropolitan area has further expanded. The market is overheating mainly in areas with transportation benefits such as Yangju and Goyang in Gyeonggi Province. On the other hand, regions outside the metropolitan area like Busan and Daegu showed a somewhat subdued trend as the rate of increase narrowed. Analysts suggest that buying demand is moving from the provinces back to the metropolitan area.

According to the weekly apartment price trend for the first week of January announced by the Korea Real Estate Board on the 7th, apartment prices in the metropolitan area rose by 0.26% this week, an increase from 0.23% the previous week. The rate of increase in apartment prices in the metropolitan area has expanded for six consecutive weeks since the fourth week of November last year (0.15%).

In the metropolitan area, the rise in apartment prices in Gyeonggi Province led the upward trend, increasing from 0.32% to 0.37%. Yangju (1.44%) and Uijeongbu (0.66%) saw significant increases due to transportation benefits such as GTX-C. Goyang (1.10%), which has recently shown a clear upward trend, continues to rise mainly in Deogyang (1.25%), Ilsanseo (1.21%), and Ilsandong-gu (0.64%).

Dongducheon (0.81%) rose mainly in mid-to-low priced complexes with expectations of transportation improvements, Namyangju (0.67%) increased mainly in Jinjeop, Hwado-eup, and Dasan-dong, and Seongnam Bundang-gu (0.46%) rose mainly in Seohyeon and Gumi-dong.

Incheon also rose by 0.27%, slightly higher than the previous week's 0.26%. Yeonsu-gu (0.67%) continues to show an upward trend mainly in Songdo New City, and Namdong-gu (0.35%) and Bupyeong-gu (0.23%) also saw apartment prices rise in areas benefiting from Seoul Subway Line 7 and other factors.

Seoul rose by 0.06%, the same as the previous week. Amid abundant liquidity due to low interest rates and a decrease in supply, buying sentiment remains high, with a clear upward trend in major complexes in the Gangnam area. Apartment price increases in the four Gangnam districts?Songpa and Gangdong-gu (0.11%), Seocho-gu (0.10%), and Gangnam-gu (0.09%)?exceeded the Seoul average.

As the Gangnam area, which had been subdued due to last year's ultra-strong real estate regulations, began to recover buying demand, Mapo-gu (0.10%) also saw an increase mainly in major complexes in Gongdeok and Ahyeon-dong, where residential conditions are favorable.

On the other hand, non-metropolitan areas such as provinces (0.33%→0.28%), the five major metropolitan cities (0.45%→0.37%), eight provinces (0.23%→0.20%), and Sejong (0.27%→0.24%) all saw a narrowing of the rate of increase.

Busan (0.58%→0.45%), Daegu (0.40%→0.34%), and Ulsan (0.60%→0.48%) have seen a decrease in the rate of increase since being designated as major adjustment areas last year. Sejong (0.27%→0.24%) also is showing a subdued transaction atmosphere as prices have risen sharply in the short term.

(Photo by Yonhap News)

The jeonse (long-term lease) market generally showed similar or slightly lower price increases compared to the previous week.

Seoul apartment jeonse prices rose by 0.13%, the same as last week. The Gangnam area, including Seocho-gu (0.18%), Songpa-gu (0.17%), and Gangnam-gu (0.16%), continues to maintain a high rate of increase, and Mapo and Yongsan-gu (0.19%) are also experiencing a soaring jeonse price trend.

The Korea Real Estate Board explained, "The upward trend continues mainly in areas with relocation demand due to redevelopment projects or favorable residential conditions such as transportation and school districts, and in mid-to-low priced complexes."

In Gyeonggi Province, the jeonse price increase rate slightly expanded from 0.25% to 0.26%. Areas with strong price increases such as Yangju (0.49%) and Goyang (0.63%) also saw significant rises in jeonse prices. Namyangju (0.42%) and Uiwang-si (0.34%) showed higher rates of increase than the Gyeonggi average.

Similar to apartment prices, the rate of increase in jeonse prices slightly narrowed in provinces (0.35%→0.30%), the five major metropolitan cities (0.42%→0.36%), eight provinces (0.24%→0.20%), and Sejong (1.81%→1.78%).

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