Weekly Record Highs... Capital Region Housing Prices Reach All-Time High, Seoul Hits Highest in 3 Years

Korea Real Estate Board August 3rd Week Apartment Price Trends
Capital Region Records Highest Weekly Increase Ever Again
Seoul Hits Highest Since September 2018 After About 3 Years
Weekly New Records... Jeonse Prices Also Growing More Unstable

[Image source=Yonhap News]

This week, apartment prices in the Seoul metropolitan area rose by 0.40% compared to the previous week, setting a new record for the highest increase ever. The apartment price increase rate in Seoul also rose the most in about three years since September 2018. Concerns are growing that housing price instability is worsening.

According to the weekly apartment price trend report for the third week of August released by the Korea Real Estate Board on the 19th, as of the 16th, apartment prices in the metropolitan area rose by 0.40%, expanding the increase from the previous week (0.39%). This is the highest increase since the Real Estate Board began compiling weekly statistics in May 2012.

Apartment prices in the metropolitan area rose 0.36% in the 3rd and 4th weeks of last month, and in this month, the increase has grown from 0.37% in the first week, 0.39% in the second week, to 0.40% in the third week. This marks the highest increase for five consecutive weeks.

The apartment price increase rate in Seoul grew from 0.20% last week to 0.21% this week. This is the largest rise in about 2 years and 11 months since the third week of September 2018 (0.26%). Although the first round of pre-sale in the metropolitan area ended successfully, housing demand remains strong.

The Real Estate Board analyzed, "Although overall transaction activity continued to decline, prices rose as transactions were made at record prices mainly in reconstruction complexes where expectations for deregulation increased due to the approval of reconstruction plans, and in popular complexes."

The increase rates were particularly high in Nowon-gu (0.32%) and Dobong-gu (0.29%), where buying demand surged due to expectations of reconstruction deregulation, and the upward trend continued in Gangnam-gu (0.25%), Songpa-gu (0.24%), and Seocho-gu (0.24%) as well.

Gyeonggi-do rose 0.50% this week, also expanding the increase from the previous week (0.49%). Areas with high expectations for transportation improvements such as Anseong-si (0.89%), Osan-si (0.86%), Hwaseong-si (0.71%), Pyeongtaek-si (0.71%), and Gunpo-si (0.70%) showed strong buying demand.

Incheon rose 0.41%, slightly narrowing the increase compared to the previous week (0.43%), but still maintained the highest increase rate in the metropolitan area. Yeonsu-gu (0.59%) rose mainly in Songdo, Yeonsu, and Cheonghak-dong, and Bupyeong-gu (0.48%) rose mainly in complexes near subway stations and with expectations for redevelopment projects.

A monthly rental listing is posted at a real estate agency in Seoul.
[Image source=Yonhap News]

The jeonse (long-term lease) market also remained unstable as reconstruction relocation demand and school district demand overlapped.

Apartment jeonse prices in the metropolitan area rose 0.27% this week, increasing from 0.26% the previous week. Seoul's rate remained the same at 0.16%, but the increase in Gyeonggi-do expanded from 0.30% to 0.32%.

In Seoul, jeonse prices rose significantly in Nowon-gu (0.20%) and Songpa-gu (0.20%), and also showed large increases in Dongjak-gu (0.19%), Eunpyeong-gu (0.18%), Seocho-gu (0.17%), and Gangnam-gu (0.16%).

The Real Estate Board explained, "Although transaction activity decreased due to the summer vacation season and substitute holidays, the upward trend continued mainly in areas with good school districts or transportation conditions."

In Gyeonggi-do, Siheung-si (0.64%) saw a sharp rise in jeonse prices mainly in mid- to low-priced complexes in the Eungye district and Jeongwang-dong. Anseong-si (0.58%), Danwon-gu in Ansan (0.52%), and Yangju-si (0.46%) also continue to experience a shortage of jeonse listings. Meanwhile, Incheon saw a slight decrease in the jeonse price increase rate from 0.30% to 0.29% during the same period.

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