Seoul Apartments Rise 3.18% in First Half of Year... Surpassing Last Year's Annual Increase

Korea Real Estate Board Survey... 3.18% Increase in First Half, Surpassing Last Year's 3.01%

View of an apartment complex from Namsan, Seoul (Photo by Yonhap News)

[Asia Economy Reporter Tae-min Ryu] The rate of increase in apartment prices in Seoul has already surpassed last year's annual increase rate in just the first half of this year.

According to the time series data from the Korea Real Estate Board's nationwide housing price trend survey on the 18th, Seoul apartment prices rose by 3.18% in the first half of this year, exceeding last year's annual increase rate of 3.01%. Starting from November last year (0.12%), the price increase in Seoul apartments grew for four consecutive months (0.28% → 0.40% → 0.67%). After the announcement of the 2·4 supply plan, which includes the 3rd phase new towns and downtown public redevelopment plans, the increase rate slightly decreased to 0.49% in March and 0.43% in April this year. Following the April 7 by-election, expectations for the easing of reconstruction regulations grew, and the upward trend resumed from 0.48% in May to 0.67% in June.

This overall rise appears to be due to major complexes in the Gangnam area soaring sky-high while mid-to-low priced complexes located in the outskirts are catching up. The area with the highest increase rate in the first half was Nowon-gu, recording 5.08%. The Gangnam 3 districts?Songpa (4.52%), Seocho (4.20%), and Gangnam (3.94%)?followed. Next were Dobong (3.93%), Dongjak (3.48%), Mapo (3.45%), Gwanak (3.33%), Gangdong (3.26%), and Yangcheon (3.12%).

Despite the government imposing various taxes and regulatory policies on high-priced housing since last year, the price increase trend in the Gangnam 3 districts remains strong. Recently, asking prices remain high, and transactions at record prices continue to occur.

On the 29th of last month, a 105㎡ (exclusive area) apartment in Hyundai 13th Complex, Apgujeong-dong, Gangnam-gu, was traded for 3.7 billion KRW, setting a new record price. This was the first transaction in two months since the Apgujeong-dong reconstruction apartment area was designated as a land transaction permission zone at the end of April. Compared to the same size apartment traded for 3.1 billion KRW in January this year, the price rose by 600 million KRW in six months.

In relatively affordable outer areas such as Nowon-gu and Dobong-gu, demand from buyers in their 30s is increasing prices. Especially in Nowon-gu, which avoided the land transaction permission zone regulation in April, prices sharply rose centered on reconstruction complexes in Sanggye, Junggye, and Hagye-dong, ranking first in house price increase rate in the first half of the year.

In Nowon-gu, a 58㎡ apartment in Sanggye Jugong 6 Complex, which is 34 years old, was traded at a record price of 900 million KRW on the 6th, rising by about 160 to 250 million KRW compared to December last year (650 to 740 million KRW) in half a year. In terms of increase rate, this corresponds to about 17.8% to 27.8% rise.

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