Metropolitan Area Apartment Price Increase Hits New High Again... Moon's 'Countermeasure Announcement' Ineffective

Korea Real Estate Board Apartment Prices in the Fourth Week of January
Seoul Metropolitan Area Apartment Prices Rise 0.33% 'Record High'
Gyeonggi-do Shows Especially Large Increase... Seoul Remains Flat
Pre-Lunar New Year Measures Expected, but Buying Demand Continues

[Image source=Yonhap News]

[Asia Economy Reporter Moon Jiwon] The weekly increase rate of apartment prices in the Seoul metropolitan area has once again set a record high after just one week. President Moon Jae-in pledged to announce "special supply measures" for Seoul and the metropolitan area before the Lunar New Year holiday, but the market's buying momentum shows little sign of slowing down.

According to the weekly apartment price trend survey for the fourth week of January released by the Korea Real Estate Board on the 28th, as of the 25th, nationwide apartment prices rose by 0.29%, the same as the previous week.

By region, apartment prices in the metropolitan area rose by 0.33% this week. The metropolitan area recorded a 0.31% increase last week, marking the highest rise in 8 years and 8 months since the Real Estate Board began compiling statistics, and it has now broken that record again after just one week.

In the metropolitan area, Seoul's apartment prices rose by 0.09%, the same as last week, while Incheon saw a slight decrease in the rate of increase from 0.40% last week to 0.35% this week.

On the other hand, Gyeonggi Province rose by 0.46%, expanding the increase compared to 0.42% the previous week.

Namyangju City (0.96%) surged mainly in Byeollae-dong and Jinjeop-eup, areas benefiting from transportation improvements, and Goyang City (0.87%) also saw a significant rise. In particular, Deogyang-gu in Goyang, which benefits from the new Changneung Station on the Seoul Metropolitan Express Railway (GTX)-A line, saw apartment prices rise by 1.05% this week, marking four consecutive weeks of over 1% increase since the beginning of the year.

Uiwang City (0.91%) saw increases centered on redevelopment complexes in Naeson and Poil-dong, which have relatively lower price levels compared to neighboring areas, as well as Sam and Ojeon-dong. Yangju City (0.71%) and Uijeongbu City (0.68%) also experienced relatively large increases in apartment prices.

President Moon Jae-in is attending and delivering a speech at the 2021 World Economic Forum (WEF) Korea Special Address held via video conference at the Blue House on the afternoon of the 27th. (Photo by Yonhap News)

President Moon said at the New Year's press conference on the 18th that he plans to prepare a plan to supply housing in Seoul and other metropolitan city centers at a level "beyond expectations" and announce it before the Lunar New Year holiday, but the rise in housing prices continues.

In Seoul, abundant liquidity in the market due to low interest rates and rising jeonse (long-term deposit lease) prices have kept buying sentiment high, with upward trends continuing mainly in redevelopment project sites, areas near subway stations, newly built apartments, and undervalued complexes.

In Seoul, Songpa-gu (0.17%) maintained the highest increase rate, the same as last week. Gangnam-gu (0.11%) and Gangdong-gu (0.10%) also saw relatively large increases, and Seocho-gu (0.09%) rose mainly in redevelopment complexes in Banpo-dong, although the overall buying momentum decreased, reducing the rate of increase.

North of the Han River, clear upward trends were seen in Mapo-gu (0.13%), Dongdaemun-gu (0.12%), and Gangbuk-gu (0.11%).

In the provinces, apartment price increases slightly narrowed from 0.26% to 0.25%. By city and province, the increases were in the order of Gyeonggi Province, Daejeon (0.40%), Daegu (0.38%), Incheon (0.35%), Busan (0.33%), Chungnam (0.32%), Ulsan (0.31%), Gyeongbuk (0.30%), Sejong (0.20%), Gangwon (0.20%), and Gyeongnam (0.20%).

Sejong City rose by 0.20% this week, reducing the increase for the second consecutive week. The Real Estate Board explained, "Although the rate of increase narrowed compared to last week, the upward trend continued mainly in mid- to low-priced complexes in Jochiwon-eup, where price levels are relatively low."

[Image source=Yonhap News]

Apartment jeonse prices nationwide showed the same or slightly lower increase rates compared to the previous week.

Nationwide apartment jeonse prices rose by 0.23% this week, marking a reduction in the rate of increase for five consecutive weeks since the third week of December last year.

By city and province, the highest increases were in Sejong (1.02%), Daejeon (0.50%), Ulsan (0.37%), Chungnam (0.32%), Incheon (0.29%), Busan (0.29%), Daegu (0.28%), Gyeonggi (0.27%), Gyeongbuk (0.24%), Gangwon (0.21%), and Jeju (0.19%).

Seoul's apartment jeonse price increase rate was 0.12%, slightly lower than 0.13% the previous week. Jeonse prices rose mainly in areas near subway stations, school districts, and mid- to low-priced complexes, but in some areas where price increases had been high, listings accumulated, causing the upward trend to slow.

In the Gangnam 4 districts, including Songpa-gu (0.15%), Gangnam-gu (0.14%), Gangdong-gu (0.12%), and Seocho-gu (0.08%), the rate of increase narrowed compared to the previous week. Yongsan-gu (0.16%), Seongbuk-gu (0.16%), Eunpyeong-gu (0.15%), and Nowon-gu (0.15%) also recorded similar increase rates to the previous week.

In Gyeonggi Province, apartment jeonse price increases expanded from 0.25% to 0.27%. Namyangju City (0.65%) rose mainly in newly built apartments in Byeollae New Town and Dasan New Town, and Uijeongbu City (0.62%) increased mainly in newly built apartments in Nagyang and Millak-dong and older apartments in Singok-dong.

In the provinces, apartment jeonse price increases slightly narrowed from 0.25% to 0.24%, and Sejong City also saw a decrease in the rate of increase from 1.17% to 1.02%.

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