Seoul Apartment Prices Rise Faster... Jeonse Prices Also Show Wider Increase

Korea Real Estate Board May 5th Week Apartment Price Trends
Seoul Sale Price Increase Rate 0.10%→0.11%
Highest Increase Rate Since July Last Year
Incheon and Gyeonggi House Prices Also Show Expanded Increase
Seoul Jeonse Prices Rise for 2 Consecutive Weeks, Causing Concern

Apartment view of the Gangnam area seen from the Lotte World Tower Sky Observatory in Songpa-gu, Seoul. Photo by Dongju Yoon doso7@

[Asia Economy Reporter Moon Jiwon] Seoul apartment prices rose by 0.11% this week, increasing the rate of growth compared to the previous week. This is the highest rate of increase in about 11 months since the first week of July last year. Besides Seoul, price increases also expanded in Gyeonggi Province and Incheon. The metropolitan real estate market, which had been stabilizing after the 2·4 measures, is showing signs of instability again due to recent regulatory easing moves. In particular, Seoul's jeonse prices are also gradually increasing their rate of growth.

According to the 'Weekly Apartment Price Trend' for the fifth week of May announced by the Korea Real Estate Board on the 3rd, as of April 31, Seoul apartment prices rose by 0.11%, expanding the increase compared to the previous month (0.10%). The 0.11% increase rate is the highest in about 11 months since the first week of July last year. Due to the impact of the 2·4 measures, Seoul's apartment price growth rate fell from 0.10% in early February to 0.05% at the end of March, but the rate of increase has been growing again since the Seoul mayoral by-election in April.

The Real Estate Board explained, "While tax and loan-to-value (LTV) ratio easing measures for market stabilization and the 2·4 measures continue, prices are rising mainly in mid-to-low price and small-sized units with good transportation conditions or good access for actual demand."

In Seoul, apartment prices are rising rapidly centered on Nowon-gu (0.22%), Songpa-gu (0.19%), Seocho-gu (0.18%), and Gangnam-gu (0.16%), where expectations for reconstruction regulation easing are growing. This week, Mapo-gu (0.15%) also saw relatively significant increases mainly in Gongdeok and Dohwa-dong, which have good access to work and residence, and Gwanak-gu (0.12%) continued its upward trend mainly in Sillim-dong, where transportation improvement expectations exist.

Incheon’s apartment price increase rate expanded from 0.43% last week to 0.46% this week. Incheon has been steadily maintaining a rise rate of 0.4~0.5% recently due to various development prospects. Bupyeong-gu (0.55%), Yeonsu-gu (0.51%), Namdong-gu (0.47%), and Gyeyang-gu (0.45%) all saw apartment prices rise due to development expectations.

Gyeonggi Province rose by 0.36% this week, also increasing compared to last week (0.32%). Siheung-si (0.91%) maintained a high growth rate mainly in areas near stations and mid-to-low price complexes, while Anyang Dongan-gu (0.86%), Ansan-si (0.79%), Uiwang-si (0.66%), and Pyeongtaek-si (0.63%) also saw price increases due to transportation improvement expectations.

Sejong, which had been declining recently, shifted to a stable trend this week. The Real Estate Board explained, "With high listing prices causing buying demand to pause, both the downtown and outskirts areas showed a wait-and-see attitude, shifting from decline to stability."

Apartment views of the Gangnam area as seen from the Lotte World Tower Sky Observatory in Songpa-gu, Seoul. Photo by Dongju Yoon doso7@

Seoul’s apartment jeonse prices also rose by 0.06%, increasing the rate of growth compared to last week (0.04%). Seoul showed a relatively low increase rate of 0.03% from March to May, but the rate of increase has expanded over the last three weeks from 0.03% → 0.04% → 0.06%. The Real Estate Board analyzed, "While supply and demand conditions showed some stability due to the use of renewal request rights and seasonal factors, the upward trend continued mainly in areas with relocation demand or mid-to-low price and newly built complexes."

In Seoul, jeonse prices in Seocho-gu (0.26%) surged due to relocation from redevelopment projects, and Nowon-gu (0.10%), where sales prices increased significantly, also saw considerable rises mainly in small-to-medium complexes in Wolgye and Gongneung-dong. Besides these, most areas saw jeonse price increases, including Dongjak-gu (0.10%), Songpa-gu (0.09%), Seongdong-gu (0.06%), and Yongsan-gu (0.05%), while Yangcheon-gu (0.00%) shifted from decline to stability as low-priced listings were exhausted.

Incheon’s apartment jeonse price increase rate also expanded from 0.27% to 0.29%. Bupyeong-gu (0.41%) saw significant rises mainly in station-adjacent complexes in Cheongcheon, Bugae, and Samsan-dong, and Gyeyang-gu (0.35%), Namdong-gu (0.35%), and Michuhol-gu (0.33%) also showed unstable trends.

Gyeonggi Province’s jeonse prices rose by 0.14%, the same as the previous month. Siheung-si (0.60%), Dongducheon-si (0.44%), and Pyeongtaek-si (0.38%), where sales prices increased significantly, also saw considerable jeonse price rises. Sejong, which saw a 0.14% drop in jeonse prices last week, reduced its decline to -0.08% this week. The Real Estate Board explained, "The decline continued due to seasonal off-season and new move-in volumes."

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