Seoul Housing Prices Rise Most in 7 Months... Will the 'Record-Breaking Supply Measures' Be Effective?

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(Photo by Yonhap News)

[Asia Economy Reporter Moon Jiwon] Seoul apartment prices rose by 0.10% compared to the previous week, marking the highest increase in seven months.

According to the nationwide weekly apartment price trend survey for the first week of February released by the Korea Real Estate Board on the 4th, Seoul apartment prices rose by 0.10% as of the 1st, increasing the rate of rise from the previous week (0.09%).

This is the first time in seven months since the first week of July last year (0.11%) that the weekly apartment price increase rate in Seoul has exceeded 0.10%. Seoul showed a somewhat stable trend with an increase rate of 0.01% to 0.03% from August to November last year due to successive government real estate regulations, but the rate of increase has been expanding again since December last year.

The Korea Real Estate Board analyzed, "Amid expectations for deregulation and stabilization to expand supply in areas near subway stations, prices rose mainly in reconstruction and other redevelopment projects or in mid-to-low-priced complexes."

In Seoul, Songpa-gu (0.17%) saw the largest increase, mainly in Sincheon and Jamsil-dong. Gangnam-gu (0.12%) and Seocho-gu also saw an expanded increase mainly in reconstruction complexes.

Nowon-gu (0.15%) rose mainly in areas with development benefits such as transportation and expectations for redevelopment progress, and Mapo-gu (0.14%) saw significant increases mainly in areas near subway stations such as Seongsan, Dohwa, and Singongdeok-dong.

Apartment prices in the metropolitan area rose by 0.33%, maintaining the same rate of increase as last week. This is the highest increase rate since the Korea Real Estate Board began compiling related statistics in May 2012.

In the metropolitan area, Incheon’s apartment price increase rate narrowed from 0.35% to 0.31%, but Gyeonggi-do’s increase rate expanded from 0.46% to 0.47%. Cities such as Uiwang-si (1.09%), Yangju-si (1.05%), Namyangju-si (0.96%), and Goyang-si (0.76%) still showed strong increases.

In the provinces, the apartment price increase trend slowed somewhat. By city and province, the increases were in the order of Gyeonggi (0.47%), Daegu (0.40%), Daejeon (0.40%), Busan (0.33%), Incheon (0.31%), Gyeongbuk (0.29%), Gangwon (0.26%), Chungnam (0.26%), Ulsan (0.24%), Jeju (0.22%), and Sejong (0.18%).

(Photo by Yonhap News)

Nationwide apartment jeonse (long-term lease) prices rose by 0.24% this week, slightly narrowing the increase from the previous week (0.23%).

In Seoul, the jeonse price increase rate decreased from 0.12% to 0.11% during the same period. This is the lowest level since November 2 last year (0.12%).

In particular, in areas densely populated with high-priced apartment complexes such as Gangnam-gu (0.14%→0.12%) and Seocho-gu (0.08%→0.07%), the accumulation of jeonse listings led to a reduced rate of increase.

The Korea Real Estate Board explained, "The upward trend continued mainly in areas near subway stations or with good school districts and mid-to-low-priced complexes," but "due to the increase in move-in volumes, some areas saw an accumulation of listings, resulting in a reduced rate of increase."

On the other hand, the jeonse price increase rate in the metropolitan area expanded from 0.22% to 0.23%. Although Seoul’s increase rate narrowed, the expanded increase rate in Gyeonggi-do (0.27→0.29%) appears to have influenced this.

Rising trends were maintained in Namyangju-si (0.88%), Uijeongbu-si (0.72%), Pyeongtaek-si (0.44%), and Siheung-si (0.38%), while Incheon (0.29→0.22%) saw a slowdown in the rate of increase.

Meanwhile, the government announced plans to additionally supply 830,000 housing units nationwide, including 320,000 units in Seoul, by 2025 through large-scale urban redevelopment projects and the designation of new housing sites.

Including the previously announced supply plan of 1.27 million units in the metropolitan area such as the 3rd New Town, the total supply volume planned by the Moon Jae-in administration for the metropolitan area reaches 1,817,000 units.

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