Seoul Apartment Prices Rise Again with Increased Gains... Reflecting "O Se-hoon-led Reconstruction Expectations"

Real Estate 114, Weekly Trends in Apartment Prices in the Seoul Metropolitan Area

[Asia Economy Reporter Kim Hyemin] The rate of increase in apartment sale prices in Seoul expanded again last week. Although the upward trend had slowed due to concerns over cash settlement in public-led redevelopment projects, the expectation of relaxed reconstruction regulations following the election of Seoul Mayor Oh Se-hoon appears to have been reflected in the sale prices.

According to Real Estate 114 on the 17th, the rate of change in Seoul apartment sale prices recorded 0.08%, an increase of 0.03 percentage points compared to the previous week. While general apartments rose by 0.06%, reconstruction apartments increased by 0.18%, driving up the overall growth rate. The rise in reconstruction apartments was the highest in about two months since February 26, when it increased by 0.22%.

Until last week, the increase in Seoul apartment sale prices was showing signs of slowing down. Real Estate 114 stated, "There is a mood that expectations for the revitalization of redevelopment and reconstruction projects are being reflected in prices," adding, "In particular, reconstruction apartments in Gangnam-gu and Songpa-gu led the price increases."

By district, the highest growth rates were seen in ▲Dobong (0.2%) and ▲Nowon (0.16%), where mid-to-low priced apartments are concentrated. Real Estate 114 explained that in Dobong, asking prices for older apartments have been steadily rising amid a shortage of available properties. This was followed by ▲Yangcheon (0.16%), ▲Yongsan (0.13%), ▲Guro (0.12%), and ▲Songpa (0.12%). In Yangcheon-gu, Mokdong New Town complexes 3 and 7 rose by 40 to 50 million KRW. Among major reconstruction promotion complexes, Hanbo Midomanseon in Daechi-dong, Gangnam-gu; Sinbanpo 22nd complex in Jamwon-dong, Seocho-gu; and Jamsil Jugong 5th complex in Jamsil-dong, Songpa-gu increased by 15 to 50 million KRW.

New towns rose by 0.04% compared to the previous week. The upward trend continued mainly in Pyeongchon (0.14%), where demand increased due to expectations of transportation improvements. Gyeonggi and Incheon rose by 0.07% compared to the previous week. Demand concentrated in the relatively undervalued Siheung area (0.27%) due to expectations for new town development.

The jeonse (long-term lease) market also seems to have returned to an upward trend after a period of weakness centered on some areas with high move-in volumes this year. Seoul rose by 0.04% compared to the previous week. Although five autonomous districts saw declines last week, this week only Gangdong-gu experienced a decrease. New towns rose by 0.02%, and Gyeonggi and Incheon increased by 0.04%.

Yoon Ji-hae, chief researcher at Real Estate 114, said, "Following Mayor Oh’s confirmed election, price increases are prominent in areas preferring private-led reconstruction projects such as Gangnam area, Mokdong in Yangcheon-gu, and Yeouido in Yeongdeungpo-gu," adding, "Since regulatory relaxation is essential to expand housing supply in downtown Seoul, the upward trend led by reconstruction is expected to continue for the time being."

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