"This Week Also Records the Highest Increase Ever"…Capital Region Housing Prices 'Brake Failure'

Korea Real Estate Board August 2nd Week Apartment Price Trends
Greater Seoul Area 0.37%→0.39% Increase Rate Expands
Highest Rise Rate in Over Three Months Recorded 5 Times
Incheon and Gyeonggi See Larger Gains... Jeonse Slightly Decreases

[Image source=Yonhap News]

Apartment prices in the Seoul metropolitan area have set a new record for the highest increase rate for two consecutive weeks. Despite the start of pre-subscription for public housing sites in the metropolitan area and the government's continued warnings about the 'peak of housing prices,' apartment prices in the metropolitan area are soaring regardless.

According to the weekly apartment price trend for the second week of August announced by the Korea Real Estate Board on the 12th, as of the 9th, apartment prices in the metropolitan area rose 0.39% compared to the previous week (0.37%). This is the highest increase rate since the Real Estate Board began compiling weekly statistics in May 2012.

The increase rate of apartment prices in the metropolitan area has been continuously growing recently. Over the past three months, the highest increase rate has been renewed five times: the second week of June (0.34%), the third week of June (0.35%), the third week of July (0.36%), the first week of August (0.37%), and this week.

In Seoul, apartment prices rose by 0.20% this week, maintaining the same increase rate as the previous week. The Real Estate Board explained, "Although transaction activities decreased due to the summer vacation season and the spread of COVID-19, new record prices continued mainly in major reconstruction (old building) complexes where expectations for deregulation exist."

North of the Han River, areas with strong expectations for reconstruction such as Nowon-gu (0.32%) and Dobong-gu (0.28%) showed significant increases, while in the Gangnam area, buying demand continued in Songpa-gu (0.24%) and Gangnam-gu (0.23%). Districts with many mid-to-low priced properties like Gangseo-gu (0.23%) and Gwanak-gu (0.22%) also remain on the rise.

In Incheon, prices jumped 0.43% this week compared to 0.37% last week. In Yeonsu-gu (0.63%), apartment prices rose mainly in Songdo-dong, where there are expectations for transportation improvements, and in Seo-gu (0.47%), prices increased mainly in the Cheongna district, which has many development prospects. Bupyeong-gu (0.46%) and Gyeyang-gu (0.41%) are also rising rapidly.

In Gyeonggi Province, the apartment price increase rate grew from 0.47% last week to 0.49% this week. Anseong-si (0.94%), centered on complexes with official prices under 100 million KRW, saw the largest increase, followed by Osan-si (0.88%), Gunpo-si (0.80%), Anyang Dongan-gu (0.79%), and Pyeongtaek-si (0.79%).

On the other hand, in Sejong City, the volume of listings accumulated mainly in Sodam and Jongchon-dong, and demand decreased, causing the apartment price decline to deepen from -0.06% last week to -0.15% this week.

View of apartments in the Gangnam area of Seoul from Daemosan Mountain, Seoul [Image source=Yonhap News]

Apartment jeonse (long-term lease) prices showed a somewhat reduced increase rate compared to last week but still remain unstable.

The jeonse price increase rate for Seoul apartments recorded 0.16%, slightly lower than last week's 0.17%. The Real Estate Board explained, "A general shortage of listings continues due to school districts and relocation demand from redevelopment projects," but "transactions and inquiries decreased due to the vacation season."

In Seoul, the jeonse price increase rates were significant in Yangcheon-gu (0.24%), Dongjak-gu (0.20%), Nowon-gu (0.20%), Yongsan-gu (0.20%), and Seocho-gu (0.19%) and Songpa-gu (0.17%).

In Incheon, jeonse demand concentrated mainly in Songdo New City, Cheongna-dong new buildings, and stationside areas such as Sangok, Samsan, and Cheongcheon-dong, causing prices to rise 0.30% compared to the previous week. In Gyeonggi Province (0.30%), Siheung-si (0.63%), Anseong-si (0.53%), Danwon-gu in Ansan (0.52%), and Hwaseong-si (0.45%) saw significant increases in jeonse prices alongside rising sale prices.

In Sejong City, due to the seasonal off-season effect, rental demand decreased, and jeonse prices continued to decline by -0.03% this week following last week.

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