Seoul Apartment Prices Rising... All 25 Districts Up for 3 Consecutive Weeks

Real Estate 114, This Week's Seoul Real Estate Market Trends

[Asia Economy Reporter Kim Hyemin] Despite the heatwave and strengthened social distancing measures, Seoul apartment sale prices continue to show a steady upward trend. All 25 autonomous districts recorded increases for three consecutive weeks. In the metropolitan area, demand continues to flow steadily, centered on development prospects and undervalued areas.

According to Real Estate 114 on the 7th, Seoul apartment sale prices in the first week of August rose by 0.1% compared to the previous week. General apartments increased by 0.1%, and redevelopment complexes rose by 0.12%.

In Seoul, mid-to-low priced and redevelopment apartments led the upward trend. By region, the order was ▲Nowon (0.2%) ▲Yongsan (0.2%) ▲Gangdong (0.18%) ▲Geumcheon (0.18%) ▲Gwangjin (0.16%) ▲Gwanak (0.14%) ▲Gangnam (0.13%).

New towns rose by 0.03% compared to the previous week. Pyeongchon recorded the highest increase at 0.19%, followed by ▲Jungdong (0.09%) ▲Bundang (0.04%) ▲Sanbon (0.04%) ▲Ilsan (0.03%). Real Estate 114 explained, "Pyeongchon is showing strength in apartment prices near Indeogwon Station due to transportation benefits such as the GTX-C line and Wolpyeong Line." On the other hand, Gwanggyo fell by 0.1% compared to the previous week as prices in some complexes that had surged were adjusted.

Gyeonggi and Incheon rose by 0.07% compared to the previous week. By region, the order was ▲Namyangju (0.1%) ▲Osan (0.09%) ▲Pyeongtaek (0.09%) ▲Yangju (0.09%) ▲Guri (0.08%). Real Estate 114 said, "In Incheon, inquiries for purchases remain steady due to the 3rd phase new town issue and perceptions of undervaluation."

In the jeonse market, prices rose mainly in large complexes with good living conditions amid a continued shortage of listings. Seoul rose by 0.08% compared to the previous week. By district, the order was ▲Dobong (0.17%) ▲Seongdong (0.15%) ▲Dongjak (0.14%) ▲Gangdong (0.13%) ▲Gwangjin (0.13%) ▲Gangbuk (0.12%).

Gyeonggi, Incheon, and new towns each rose by 0.04%.

Yeo Kyung-hee, chief researcher at Real Estate 114, said, "Although transactions are not very active due to the summer vacation season, strengthened social distancing, and fatigue from price increases, the upward trend is hardly weakening," adding, "The spreading instability in the jeonse market is also acting as upward pressure on apartment prices." She added, "On the other hand, due to the heavy capital gains tax on multiple homeowners, listings are locked up, and there are not many available units for actual move-in due to contract renewal demands," forecasting, "While transactions continue intermittently, the upward trend based on asking prices is expected to continue."

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