"Outer Suburbs Mid-Low Price Buying Demand and Gangnam Reconstruction Expectations"…Seoul Apartments Up 0.14%

Seoul Outer Suburbs Mid-Low Price Buying Demand Rises on Gangnam Area Reconstruction Expectations
"Jeonse Market Sees Reduced Gains Amid Cold Wave... Jeonse Shortage Continues Due to Lack of Listings"

[Asia Economy Reporter Yuri Kim] Even as the new year begins, the upward trend in apartment prices in Seoul and the metropolitan area remains unchanged from last year. Demand for mid-to-low priced apartments continues mainly in the outskirts of Seoul, while the Gangnam area maintains its upward momentum due to expectations for major redevelopment projects. Although buying demand persists intermittently, the lack of available listings in the market is steadily pushing asking prices higher. With the upcoming Seoul mayoral by-election, various pledges related to supply expansion, easing of redevelopment and reconstruction regulations, and taxes have been proposed, which is expected to further increase buyers' interest. The jeonse (long-term lease) market also continued to rise due to a shortage of listings. However, the recent cold wave has somewhat slowed the rate of increase this week.

According to Real Estate 114 on the 15th, apartment sale prices in Seoul rose by 0.14% this week, matching last week's increase. Reconstruction apartments increased by 0.10%, while general apartments rose by 0.14%. Prices in Gyeonggi, Incheon, and new towns increased by 0.20% and 0.24%, respectively.

In Seoul, non-Gangnam areas led the price increases at the start of the year. Areas close to downtown and business facilities such as Gwanak and Dongdaemun, as well as mid-to-low priced apartment clusters in Dobong, Guro, and Jungnang, saw significant gains. The Gangnam area also continued its upward trend due to expectations for reconstruction and other redevelopment projects. By region, the increases were as follows: Gwanak (0.27%), Dongdaemun (0.25%), Seongbuk (0.25%), Dobong (0.24%), Mapo (0.23%), Guro (0.21%), Jungnang (0.21%), Gangseo (0.20%), Seodaemun (0.19%), Seongdong (0.17%), and Songpa (0.16%).

In Gwanak, demand intermittently flowed into large complexes, with prices rising by 5 million to 50 million KRW in areas such as Byeoksan Blooming in Bongcheon-dong, Seonghyeon Donga, Gwanak Prugio, and Samsung San Jugong 3 Complex in Sillim-dong. In Dongdaemun, station-area complexes such as Raemian Areumsoop in Jeonnong-dong, Raemian Hubritz in Yongdu-dong, Miju in Cheongnyangni-dong, and Hillstate Cheonggye in Dapsimni-dong rose by 10 million to 30 million KRW. Seongbuk saw a large increase this week due to a shortage of available listings. Prices rose by 10 million to 30 million KRW in Samseon SK View in Samseon-dong 3-ga, Raemian in Gireum New Town 9 Complex, Doosan We’ve in Gireum New Town 7 Complex, Jeongneung 2nd E-Pyeonhansesang in Jeongneung-dong, and Dream Forest Prugio in Hawolgok-dong.

In new towns, apartment prices in Ilsan have steadily increased due to ongoing transportation benefits such as the Metropolitan Area Express Train (GTX). By region, the increases were: Ilsan (0.59%), Pyeongchon (0.34%), Wirye (0.30%), Paju Unjeong (0.28%), Bundang (0.27%), Sanbon (0.19%), Dongtan (0.16%), and Jungdong (0.14%). In Ilsan, prices rose by 10 million to 30 million KRW in complexes such as Gangseon 2 Complex Kyungnam in Juyeop-dong, Hosu 3 Complex Samhwan Yuwon in Janghang-dong, Baekma 1 Complex Samsung in Madu-dong, Hugok 13 Complex Taeyoung in Ilsandong, Baeksong 5 Complex Samho Poonglim in Baekseok-dong, and Bamgasi Geonyeong Villa 8 Complex in Jeongbalsan-dong. In Pyeongchon, prices increased by 10 million to 20 million KRW in Kkum Hanshin in Pyeongchon-dong, Hangaram Sekyung in Gwanyang-dong, and Eunhasu Byeoksan in Bisan-dong. In Wirye, prices rose by 5 million to 20 million KRW in Wirye The Hill 55 in Changgok-dong and Wirye Lotte Castle in Hagam-dong.

In Gyeonggi and Incheon, prices rose in Suwon (0.35%), Goyang (0.34%), Paju (0.34%), Uijeongbu (0.32%), Namyangju (0.26%), Yongin (0.22%), and Uiwang (0.20%).

The jeonse market saw a slight slowdown in the rate of increase in both Seoul and the metropolitan area due to the winter cold wave. Seoul's jeonse prices rose by 0.21%, while Gyeonggi, Incheon, and new towns increased by 0.19% each.

In Seoul, jeonse prices rose in the following order: Gwanak (0.37%), Seongbuk (0.33%), Guro (0.32%), Songpa (0.31%), Nowon (0.29%), Gangdong (0.24%), Gangseo (0.23%), Gwangjin (0.23%), and Mapo (0.23%). In Gwanak, centered on large complexes, prices increased by 5 million to 25 million KRW in Gwanak Hyundai in Bongcheon-dong, Seonghyeon Donga, Doosan, and Gwanak Woosung. In Seongbuk, prices rose by 10 million to 20 million KRW in Doosan We’ve in Gireum New Town 7 Complex, E-Pyeonhansesang in Gireum New Town 4 Complex, Jeongneung 2nd E-Pyeonhansesang in Jeongneung-dong, Gireum Station Kumho Eoullim in Donam-dong, and Wolgok Doosan We’ve in Hawolgok-dong. In Guro, prices increased by 5 million to 25 million KRW in Sindorim 4th E-Pyeonhansesang in Sindorim-dong, D-Cube City, Gaebong I-Park in Gaebong-dong, and Onsu Hillstate in Onsu-dong.

In new towns, prices rose in Paju Unjeong (0.35%), Wirye (0.31%), Gimpo Hangang (0.27%), Sanbon (0.26%), Pyeongchon (0.24%), and Ilsan (0.20%). In Gyeonggi and Incheon, increases were seen in Paju (0.33%), Suwon (0.32%), Namyangju (0.25%), Gimpo (0.24%), Uijeongbu (0.24%), Hwaseong (0.23%), Incheon (0.22%), Yongin (0.22%), Anseong (0.20%), and Osan (0.18%).

Lim Byung-chul, Senior Researcher at Real Estate 114, said, "As issues such as rising house prices and the jeonse crisis become prominent, real estate pledges are pouring out ahead of the by-election. While expectations for eased reconstruction regulations are growing in some Gangnam complexes, questions remain about the feasibility considering policy coordination with the government and the market's term."

Regarding the metropolitan area's jeonse market, he pointed out, "Although the severe cold wave has somewhat slowed the upward trend, the overall shortage of listings continues to drive prices up. With a decrease in apartment move-in volumes in the metropolitan area and demand to secure jeonse in advance ahead of the spring moving season, instability in the jeonse market could worsen."

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