Gangnam Area Reconstruction Apartment Price Increase Narrows... "Upward Trend Remains"

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

[Asia Economy Reporter Kim Hyemin] The rate of increase in prices of reconstruction apartments in the three Gangnam districts of Seoul has narrowed. However, major reconstruction complexes in Mokdong, Sincheon-dong, and Apgujeong-dong, where the possibility of redevelopment projects has increased, continue to show an upward trend.

According to Real Estate 114 on the 24th, the apartment sale prices in Seoul this week rose by 0.08%, the same as the previous week. Reconstruction apartments increased by 0.1%, higher than general apartments (0.07%), but the rate of increase narrowed by 0.08 percentage points compared to the previous week.

In Seoul, large apartment complexes in areas densely populated with mid- to low-priced apartments led the upward trend, while reconstruction complexes stood out in Mokdong and the Gangnam area. By region, the increases were in the order of ▲Dobong (0.27%) ▲Nowon (0.24%) ▲Geumcheon (0.13%) ▲Gwanak (0.11%) ▲Yangcheon (0.11%) ▲Gwangjin (0.1%). Dobong showed strength centered on large complexes near stations such as Changdong Jugong 3 and 4 complexes, and Nowon-gu saw a notable rise in the Sanggye Jugong 2, 3, and 4 complexes, where reconstruction issues were highlighted.

Apartment sale prices in new towns rose by 0.03%. The increases were in the order of ▲Pyeongchon (0.1%) ▲Jungdong (0.1%) ▲Paju Unjeong (0.06%) ▲Ilsan (0.05%). Gyeonggi and Incheon rose by 0.06% compared to the previous week, mainly in areas with development expectations such as transportation. The order was ▲Siheung (0.23%) ▲Bucheon (0.13%) ▲Incheon (0.12%).

The jeonse (long-term lease) market in Seoul rose by 0.03%, maintaining a similar upward trend for a month. The increases were in the order of ▲Gwanak (0.19%) ▲Geumcheon (0.12%) ▲Dobong (0.1%) ▲Seodaemun (0.08%). Gangdong-gu, where jeonse prices had fallen since early last month due to the impact of new housing supply, turned to a 0.01% increase this week. Gyeonggi and Incheon recorded 0.04%. Siheung rose the most at 0.24%, while Uijeongbu and Hwaseong recorded negative growth rates of -0.03% and -0.01%, respectively, as large apartment complexes moved in. New towns rose by 0.01%, while Dongtan (-0.07%) fell due to decreased jeonse demand.

Ye Kyung-hee, senior researcher at Real Estate 114, said, "Seoul Mayor Oh Se-hoon designated major reconstruction areas in Seoul as land transaction permission zones as signs of rapid price increases centered on reconstruction appeared, but the market is taking this as a positive rather than a regulation." She added, "Considering this situation, the upward trend in sale prices centered on reconstruction apartments is expected to continue for the time being."

Regarding the jeonse market, she said, "Although it is the spring moving season, demand is not very active due to price increase fatigue and contract renewals," but added, "However, with the implementation of the monthly jeonse reporting system in June, a decrease in jeonse listings is expected, so the recent upward trend is likely to be maintained."

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