Seoul Housing Price Increase Slows... Localized Instability Continues in Nowon and Siheung

Korea Real Estate Board April Nationwide Housing Price Trends
Seoul and Gyeonggi Increase Narrowed... Only Incheon Expanded
Comprehensive Real Estate Tax Slows Due to Housing Supply Expansion

However, Some Areas Like Siheung and Nowon Still Soaring
One Year Left in Term but 'Housing Price Recovery' Difficult

[Asia Economy Reporter Moon Jiwon] The rise in housing prices slowed last month due to increased property tax burdens and the government's policy to expand housing supply. However, major redevelopment complexes in Seoul and some areas in Gyeonggi Province, such as Siheung and Ansan, still show strong buyer demand. Analysts suggest that expectations for real estate regulation easing triggered by the political sphere and development benefits like the Metropolitan Area Express Train (GTX) are stimulating housing prices in the outskirts.

According to the nationwide housing price trend survey released by the Korea Real Estate Board on the 3rd, the average housing (including apartments, detached houses, and row houses) price nationwide rose by 0.71% last month, narrowing from the previous month's increase of 0.74%. In Seoul (0.38%→0.35%) and Gyeonggi Province (1.28%→1.17%), the upward trend slowed, while in the metropolitan area, only Incheon saw an expanded increase from 1.31% to 1.47%.

Overall, buyer demand has somewhat cooled, but compared to a year ago, the increase remains high. In April last year, Seoul's housing prices fell by 0.02%, and Incheon (1.05%) and Gyeonggi Province (0.75%) showed relatively low growth rates. Although the ruling party and government are focusing policy efforts on raising property taxes and expanding housing supply ahead of next year's presidential election, the initial goal of restoring housing prices to previous levels remains distant.

In Seoul, Nowon-gu (0.69%), where redevelopment expectations have grown since Mayor Oh Se-hoon's inauguration, showed the largest increase, and in Gyeonggi Province, areas with transportation benefits such as Siheung (3.58%) and Danwon-gu in Ansan (2.95%) saw significant rises. High-priced residential areas like Gangnam-gu (0.50%) and Songpa-gu (0.44%) also maintained upward trends.

The jeonse and monthly rent market is seeing a slowdown in price increases. Seoul's housing jeonse price growth rate shrank from 0.29% to 0.20% this month, and Incheon and Gyeonggi Province also dropped by more than 0.1 percentage points. Sejong (0.66%→0.20%) saw its increase cut by more than half, and other regions showed similar trends.

However, areas with large housing price increases such as Nowon-gu in Seoul (0.67%), Siheung in Gyeonggi Province (1.07%), and Incheon (0.85%) experienced sharp rises in jeonse prices despite the seasonal off-season. The Korea Real Estate Board explained, "In Seoul, jeonse prices rose in mid-to-low-priced complexes with good living conditions, and in Gyeonggi Province, areas like Siheung and Pyeongtaek with transportation expectations saw increases."

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