Seoul and Gyeonggi Apartment Price Increase Rates Narrow... Only Incheon Sees Larger Rise

Korea Real Estate Board March First Week Apartment Price Trends
Seoul Increase Rate Slightly Reduced from 0.08% to 0.07%
Market Watch Due to 2·4 Measures... Rise Slows
However, Too Early to Talk About Price Stability... Upward Trend Continues

[Image source=Yonhap News]

[Asia Economy Reporter Moon Jiwon] The apartment price increase rates in Seoul and Gyeonggi-do have slightly narrowed compared to the previous week. This is interpreted as reflecting the cooling buying demand following the announcement of the February 4 housing supply measures.

However, there is still an analysis that it is difficult to say that housing prices have stabilized, as the upward trend continues in areas with redevelopment projects and transportation development benefits.

According to the weekly apartment price trend for the first week of March announced by the Korea Real Estate Board on the 4th, as of the 1st, nationwide apartment prices rose by 0.24%, narrowing from 0.25% the previous week.

In Seoul, the increase rate narrowed from 0.08% to 0.07%. The Real Estate Board analyzed, "Following the February 4 measures, new housing sites such as Gwangmyeong and Siheung were announced, raising expectations due to the concretization of supply measures," and "the buying demand decreased due to factors such as the sharp rise in U.S. Treasury yields, leading to a narrower increase."

In Seoul, the rise was relatively large in Gangnam and Seocho-gu (0.10%), and Songpa-gu (0.09%), where major reconstruction complexes are concentrated. Gangdong-gu (0.06%) also rose mainly in popular complexes in Amsa-dong, but some showed a wait-and-see stance, resulting in a reduced increase rate across the Gangnam 4 districts overall.

Yangcheon-gu (0.11%) maintained the same increase rate as last week, with buying demand concentrated mainly in Mok-dong, where reconstruction expectations are high. Looking at areas north of the Han River, Dobong-gu (0.08%) continued to rise mainly in large-sized units near Chang-dong Station, and Nowon-gu (0.08%) maintained an upward trend mainly in large complexes in Sanggye and Junggye-dong.

Gyeonggi-do also saw the apartment price increase rate narrow from 0.42% last week to 0.39% this week. The rise was significant in areas with high expectations for transportation improvements such as Uiwang-si (0.92%), Namyangju-si (0.79%), and also continued in Ansan-si (0.78%), Gunpo-si (0.67%). In particular, Siheung-si (0.71%), recently designated as part of the 3rd new town, saw apartment prices rise significantly mainly in Eunhaeng-dong adjacent to the announcement site.

Incheon, unlike Seoul and Gyeonggi-do, saw the apartment price increase rate expand from 0.39% to 0.41%. Jung-gu (0.60%) rose mainly in large complexes in Unseo and Jungnam-dong with transportation benefits, Yeonsu-gu (0.53%) increased mainly in Songdo New City and major complexes in Dongchun-dong with good residential conditions. Seo-gu (0.52%) saw buying demand concentrated in Cheongna International City, and Michuhol-gu (0.49%) in relatively affordable older complexes in Yonghyeon and Gwankyo-dong.

In the provinces, apartment prices rose by 0.19%, narrowing from 0.20% the previous week. The provinces saw the increase rate rise to 0.38% in the second week of December last year but have been narrowing almost every week since. Sejong-si, which has issues related to the administrative capital relocation, saw its increase rate narrow to 0.19% from 0.17%. The Real Estate Board explained, "the rise was mainly in mid-to-low-priced areas of Jochiwon-eup and Goun and Naseong-dong within the Happy City."

A real estate agency in downtown Seoul (Photo by Yonhap News)

The jeonse (long-term lease) market showed a narrowing increase rate similar to last week.

In Seoul (0.07%→0.06%), as the moving season in Banghak ends and the number of move-in units increases, listings are accumulating. The Real Estate Board explained, "As listings accumulate and transactions stagnate, there was a slight increase mainly in complexes perceived as relatively low-priced or major complexes near subway stations." According to the industry, about 1,670 households moved into Gam-il District starting last month, and about 1,070 households are scheduled to move into Wirye New City starting in May.

In Seoul, the jeonse price increase rates were high in Seongbuk and Nowon-gu (0.11%), Seongdong and Dongjak-gu (0.10%), and Eunpyeong-gu (0.09%). Gangdong-gu (0.06%) saw an expanded increase compared to last week (0.03%) as jeonse demand concentrated mainly in older complexes in Dunchon and Myeongil-dong. Gangnam and Songpa-gu (0.05%) and Seocho-gu (0.04%) showed generally similar increase rates to the previous week.

In Gyeonggi-do (0.21%→0.20%), jeonse price increase rates were high in Namyangju-si (0.52%), Dongducheon-si (0.49%), Siheung-si (0.46%), and Uiwang-si (0.39%) as listings decreased. In Incheon (0.32%→0.33%), the jeonse price increase rate expanded similarly to sales prices. Jung-gu (0.65%), Seo-gu (0.51%), and Namdong-gu (0.46%) all saw increases larger than the national average.

Sejong-si saw its jeonse price increase rate rise by 0.16% this week, significantly narrowing from 0.40% the previous week. The Real Estate Board explained, "Due to the increase in new move-ins and fatigue from rapid price rises, the increase rate narrowed, while jeonse prices rose mainly in Jochiwon-eup and Naseong and Jongchon-dong within Happy City."

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