Seoul Apartment Prices Continue to Rise This Week... Jeonse Prices Also Increase Further

Korea Real Estate Board Apartment Price Trends for 4th Week of August
Seoul Sales and Jeonse Price Increase Rates Both Expand
Amid Shortage of Listings, Rise Mainly in Reconstruction Areas

View of apartment complexes in Songpa-gu and Gangnam-gu, Seoul, as seen from Seoul Sky, the observation deck of Lotte World Tower in Songpa-gu, Seoul [Image source=Yonhap News]

The increase in apartment sale and jeonse prices in Seoul expanded further this week.

According to the weekly apartment price trend for the fourth week of August announced by the Korea Real Estate Board on the 26th, as of the 23rd, apartment prices in Seoul rose by 0.22%, an increase from the previous week's 0.21%.

Seoul recorded the highest apartment price increase rate in about 2 years and 11 months since the third week of September 2018 (0.26%) last week, and the rate expanded further within a week.

The Real Estate Board explained, "Amid a general shortage of listings, prices rose mainly for medium-to-large sized apartments near land transaction permission zones and major reconstruction projects in the northern part of Seoul."

Strong buying demand was concentrated mainly in Nowon-gu (0.39%) and Dobong-gu (0.29%), where expectations for reconstruction are high. Yongsan-gu (0.23%) saw price increases mainly in complexes with remodeling expectations, and Gangnam-gu (0.28%) experienced price rises with transactions at record prices centered on medium-to-large sized units.

Songpa-gu (0.27%) saw continued price increases mainly in Sincheon-dong reconstruction near land transaction permission zones and new constructions in Garak-dong, while Seocho-gu (0.23%) rose mainly in Bangbae-dong reconstruction projects.

Incheon rose by 0.41%, the same as the previous week. Yeonsu-gu (0.58%) saw significant increases mainly in Yeonsu, Songdo, and Ongnyeon-dong areas with transportation benefits, and Seo-gu (0.50%), Gyeyang-gu (0.49%), and Bupyeong-gu (0.46%) also maintained high growth rates.

Apartment prices in Gyeonggi-do also rose by 0.50%, the same increase as the previous week. Buying demand was particularly concentrated in Osan-si (0.83%), Uiwang-si (0.69%), Siheung-si (0.69%), Pyeongtaek-si (0.68%), and Gunpo-si (0.66%).

Apartment view in Nowon-gu, Seoul [Image source=Yonhap News]

The jeonse market continues to show instability.

Seoul apartment jeonse prices rose by 0.17% this week, an increase from 0.16% the previous week. Amid ongoing shortages of listings, jeonse demand concentrated in areas with good educational environments or near subway stations, expanding the rate of increase.

Nowon-gu (0.28%) saw particularly large jeonse price increases centered on mid-to-low priced complexes in Sanggye and Wolgye-dong and school districts in Junggye-dong. Songpa-gu (0.19%) and Gangnam-gu (0.18%) also experienced sharp rises in jeonse prices.

Seocho-gu (0.15%) saw jeonse price increases mainly in Bangbae and Umyeon-dong due to relocation demand from redevelopment projects, and Gangseo-gu (0.20%) and Dongjak-gu (0.18%) also had significant increases.

On the other hand, Incheon’s jeonse price increase rate shrank from 0.29% last week to 0.25% this week. However, Yeonsu-gu (0.50%) and Gyeyang-gu (0.31%) continued relatively high growth.

In Gyeonggi-do, apartment jeonse prices rose by 0.30%. Anseong-si (0.73%) saw large increases in jeonse prices following sale price rises mainly in Godo-eup and Wongok-myeon areas. Siheung-si (0.49%), Danwon-gu in Ansan (0.48%), and Namyangju-si (0.45%) also saw concentrated jeonse demand mainly in subway station areas and mid-to-low priced complexes.

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