After Gangnam, Jeonse Prices Fall in Mapo and Gangdong... Seoul Housing Price Increase Narrows

Korea Real Estate Board March 5th Week Apartment Price Trends
Seoul Apartment Price Increase Rate 0.06%→0.05%
Buying Demand Decreases Among Under 30s... Panic Buying Down
Seoul Gangnam, Mapo, Gangdong Jeonse Prices Decline

[Image source=Yonhap News]

[Asia Economy Reporter Mun Je-won] The rate of increase in both apartment sale and jeonse prices in Seoul has narrowed compared to the previous week. Following the announcement of the 2·4 measures, expectations have grown that the real estate market will stabilize in the mid to long term, and with the significant rise in holding tax burdens, buying demand has decreased. In particular, jeonse prices have found stability as they shifted to a downward trend this week in Gangdong-gu and Mapo-gu, following Gangnam-gu last week.

According to the weekly apartment price trend for the fifth week of March announced by the Korea Real Estate Board on the 1st, as of the 29th of last month, apartment sale prices in Seoul rose by 0.05%, a slower increase compared to 0.06% the previous week. The Korea Real Estate Board explained, "Due to the burden of holding taxes, rising market interest rates, and expectations of increased supply, overall buying demand, mainly among those under 30, has decreased."

In Seoul, apartment prices rose relatively more in the Gangnam area, where expectations for reconstruction are high. Songpa-gu (0.09%) saw buying demand concentrated mainly in Bangi and Songpa-dong, and Gangnam-gu (0.08%) in Apgujeong and Gaepo-dong, with both areas experiencing an expanded rate of increase compared to the previous week. Seocho-gu (0.07%) also saw apartment prices rise centered on reconstruction complexes.

Nowon-gu (0.08%) rose around reconstruction complexes in Sanggye and Wolgye-dong, where redevelopment progress is anticipated, and Gwangjin-gu (0.05%) increased mainly in areas with development prospects such as Guui and Gwangjang-dong. Dobong-gu (0.05%) also attracted buying demand mainly in the Chang-dong station area and older buildings in Banghak-dong, where development expectations exist. However, other districts generally showed a clear wait-and-see stance, weakening the upward trend.

In Gyeonggi-do, the apartment sale price increase rate narrowed from 0.38% to 0.36%. Siheung-si (0.92%), designated as a 3rd new town, saw a sharp rise in prices, and Ansan-si (0.89%), Uiwang-si (0.85%), Osan-si (0.56%), and Bucheon-si (0.44%) also continued their upward trends.

In Incheon, the increase rate rose to 0.48% this week, up from 0.46% the previous week. Incheon has been experiencing expanding buying demand weekly amid growing development expectations. Yeonsu-gu (0.98%), with transportation benefits, saw the highest increase, followed by Bupyeong-gu (0.43%) and Seo-gu (0.43%). Sejong-si (0.19%→0.17%) saw a contraction in buying demand mainly in the Happy City area due to factors such as official price hikes.

Seoul Apartment Complex

The jeonse market is also stabilizing. In Seoul, apartment jeonse prices rose by 0.03% this week, a smaller increase compared to 0.04% the previous week. Mapo-gu (-0.01%) shifted to a downward trend for the first time in 90 weeks since the second week of July 2019, influenced by new housing supply. Gangnam-gu (-0.02%) continued to decline this week as listings accumulated in most complexes, and Gangdong-gu (-0.02%) saw jeonse prices fall for the first time in 59 weeks since the second week of February last year.

Songpa-gu (0.00%) showed mixed trends and returned to a flat market. The Korea Real Estate Board explained, "Due to fatigue from the previous rapid rise in jeonse prices, the seasonal off-season, and an increase in listings, a wait-and-see stance is observed," adding, "Following Gangnam-gu, Mapo and Gangdong-gu also shifted to a downward trend, reducing the overall increase rate in Seoul."

In Gyeonggi-do, the jeonse price increase rate slightly narrowed from 0.13% to 0.12%. Dongducheon-si (0.43%), Siheung-si (0.39%), Uiwang-si (0.38%), and Gwangju-si (0.29%) showed relatively large increases, while Gwacheon-si (-0.18%) continued its decline due to new housing supply.

In Incheon (0.25%→0.27%), jeonse prices also increased their rate of rise following sales prices. Bupyeong-gu (0.42%) rose mainly in Sangok and Samsan-dong, which have good transportation conditions, and Namdong-gu (0.36%) increased mainly in mid- to low-priced complexes around Ganseok and Mansu-dong. Sejong-si rose 0.06% this week, showing stability compared to 0.11% the previous week.

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