Metropolitan Area Apartment Prices Rise Again... Gangnam Jeonse Prices Fall for the First Time in 45 Weeks

Weekly Apartment Price Trends for the Fourth Week of March
Rising Momentum in the Seoul Metropolitan Area Recovers
3rd Phase New Town Siheung Sees Sharp Increase with Over 1% Rise

Jeonse Prices in Gangnam and Songpa Districts Turn Downward
Stable Jeonse Prices Expected in Mapo and Gangdong Districts...

[Image source=Yonhap News]

[Asia Economy Reporter Moon Jiwon] The rate of increase in apartment prices in the Seoul metropolitan area expanded again this week. Although the rate of increase had decreased for three consecutive weeks due to the impact of the 2·4 housing supply measures, the rising prices in Incheon and Gyeonggi-do have caused renewed instability.

On the other hand, the rent prices in Seoul are gradually stabilizing. In Gangnam-gu and Songpa-gu, rent prices turned to a downward trend after 45 and 50 weeks respectively, and in Mapo-gu and Gangdong-gu, the accumulation of rental listings led to a near 0% stable trend this week.

According to the weekly apartment price trend for the fourth week of March announced by the Korea Real Estate Board on the 25th, as of the 22nd, apartment prices nationwide rose by 0.24%, an increase from the previous week’s 0.23%. After continuously declining since the fourth week of January (0.29%), the rate of increase has started to expand again.

The apartment price increase rate in the metropolitan area also expanded from 0.27% to 0.29%. Seoul showed the same increase rate as the previous week (0.06%), but the stronger buying demand in Incheon (0.36%→0.46%) and Gyeonggi-do (0.37%→0.38%) influenced this trend.

In Seoul, Yangcheon-gu (0.11%), where expectations for reconstruction are high, saw the largest price increases mainly in older apartments in Mok-dong and Sinjeong-dong. Nowon-gu (0.09%) and Dobong-gu (0.06%) also experienced significant rises in reconstruction complexes, while Gangbuk-gu (0.05%) saw increases mainly around large complexes near Mia-dong subway stations. This is interpreted as being influenced by growing expectations for easing reconstruction regulations ahead of the Seoul mayoral by-election next month.

South of the Han River, Songpa-gu (0.08%) saw price increases mainly in large older complexes in Munjeong and Bangi-dong, Seocho-gu (0.07%) rose mainly in key complexes in Umyeon and Bangbae-dong, and Gangnam-gu (0.07%) attracted buying demand in major reconstruction complexes such as Apgujeong and Gaepo-dong. However, the rate of increase generally shrank compared to the previous week. The sales supply-demand index in Seoul continued its downward trend at 104.1, following last week’s 105.6.

The Korea Real Estate Board analyzed, "Due to expectations for supply measures, tax burdens, and concerns about interest rate hikes, buying inquiries have decreased and a wait-and-see attitude has been observed," but added, "Prices rose in some mid-to-low price areas, maintaining last week’s rate of increase."

In the metropolitan area, Incheon recorded the highest rate of increase, with buying demand particularly concentrated in Yeonsu-gu (0.85%), where transportation improvements such as Wolpyeong Line are expected. Jung-gu (0.54%) saw rises mainly in Unnam and Jungsan-dong, areas benefiting from transportation developments like the Third Yeonryuk Bridge, and Bupyeong-gu (0.45%) rose mainly in Bugae, Bupyeong, and Samsan-dong, where redevelopment expectations are high.

In Gyeonggi-do, apartment prices in Siheung-si (1.09%), designated as a 3rd phase new town, are soaring amid growing expectations for transportation improvements. Siheung’s buying demand has sharply increased from 0.45% to 0.64%, 0.71%, 0.82%, 0.81%, and now 1.09%. Other cities such as Ansan-si (0.92%), Uiwang-si (0.89%), Bucheon-si (0.54%), and Gunpo-si (0.50%) also saw significant increases due to transportation improvement expectations.

Sejong City’s apartment price increase rate expanded from 0.16% to 0.19%. The Korea Real Estate Board explained, "Despite a gap between sellers’ and buyers’ desired prices due to high listing prices, prices rose mainly in Boram and Dodam-dong within the Happy City, expanding the rate of increase."

[Image source=Yonhap News]

The rental market is showing signs of stabilization.

Nationwide apartment rent prices rose by 0.14%, a decrease from the previous week’s 0.15%. The metropolitan area (0.14%→0.11%), Seoul (0.05%→0.04%), and Sejong (0.12%→0.11%) all saw reduced rates of increase.

In Seoul, Gangnam-gu (-0.02%) saw rent prices turn to a downward trend for the first time in 45 weeks since the second week of May last year. Songpa-gu (-0.01%) also shifted to a decline after 50 weeks, and Gangdong-gu (0.00%) moved to a stable trend as rental listings accumulated in the Gangnam area.

Mapo-gu (0.00%) also stabilized after 80 weeks since the second week of September 2019 due to an accumulation of listings influenced by new housing supply.

Elsewhere, Gwanak-gu (0.05%) saw increases mainly around Sillim and Bongcheon-dong subway stations, and Dongjak-gu (0.03%) rose mainly in Noryangjin and Sindaebang-dong, though the rate of increase shrank compared to the previous week. Conversely, Nowon-gu (0.11%) saw an expanded rate of increase mainly in reconstruction and subway station areas in Sanggye and Wolgye-dong, and Dobong-gu (0.04%) rose mainly in mid-to-low price areas in Dobong and Banghak-dong.

Incheon’s apartment rent price increase rate slightly decreased from 0.26% to 0.25%. Jung-gu (0.78%), Bupyeong-gu (0.44%), Namdong-gu (0.41%), and Seo-gu (0.28%) showed relatively high rates of increase.

Gyeonggi-do also saw a reduced rent price increase rate this week at 0.13%, down from 0.17% last week. Despite continued rental shortages in Uiwang-si (0.48%), Siheung-si (0.42%), and Dongducheon-si (0.40%), Seongnam’s Sujeong-gu (-0.27%) declined mainly in Wirye New Town due to new housing supply in Hanam Gam-il District.

Sejong City’s rent price increase rate slightly decreased from 0.12% to 0.11% due to fatigue from rapid rent price rises, but prices still rose mainly in mid-to-low price complexes in Dajeong and Jongchon-dong within Happy City and in Jochiwon-eup.

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