Gyeonggi-do Apartment Prices Hit Record High Increase Rate... Slight Decline in Seoul Due to Interest Rate Hikes

Korea Real Estate Board Apartment Price Trends for 5th Week of August
Record High Increase in Gyeonggi-do Despite Interest Rate Hikes
Seoul Shows Reduced Increase but Remains Unstable

The view of surrounding apartment complexes from Seoul Sky, the observation deck of Lotte World Tower in Songpa-gu, Seoul [Image source=Yonhap News]

Apartment prices in Gyeonggi-do have recorded the highest increase ever. Although the rate of increase in Seoul has slightly narrowed, it still shows signs of instability. Despite interest rate hikes, expanded pre-sale subscriptions, and warnings of peak housing prices, the upward trend in housing prices shows little sign of slowing down.

According to the weekly apartment price trend for the fifth week of August announced by the Korea Real Estate Board on the 2nd, as of the 30th of last month, nationwide apartment prices rose by 0.31%, an increase from the previous week (0.30%).

While the metropolitan area rose by 0.40%, the same as the previous week, the rate of increase in provincial areas expanded significantly from 0.19% to 0.22%. By city and province, Gyeonggi-do (0.51%), Jeju-do (0.51%), Incheon (0.43%), and Daejeon (0.34%) saw significant increases.

Apartment prices in the metropolitan area have been recording the highest increase for seven consecutive weeks since mid-last month (0.32%→0.36%→0.36%→0.37%→0.39%→0.40%→0.40%→0.40%).

In the metropolitan area, Gyeonggi-do rose by 0.51%, breaking its own record for the highest increase ever. Gyeonggi-do has also maintained a high-rise trend for seven consecutive weeks since mid-last month (0.40%→0.44%→0.45%→0.47%→0.49%→0.50%→0.50%→0.51%).

Osan-si (0.80%) and Siheung-si (0.72%) saw large increases centered on mid-to-low-priced complexes with transportation benefits. Pyeongtaek-si (0.68%), Uiwang-si (0.67%), and Hwaseong-si (0.67%) also showed steep upward trends.

Incheon’s apartment price increase rate expanded from 0.41% to 0.43%. Areas with transportation benefits such as Yeonsu-gu (0.59%), Seo-gu (0.49%) where Cheongna International City is located, and Jung-gu (0.29%) which has a perception of low prices, are all experiencing strong buyer demand.

It is interpreted that apartment prices are soaring as buyer demand flows mainly into mid-to-low-priced complexes with transportation and development benefits such as the Metropolitan Area Express Train (GTX).

Seoul rose by 0.21% this week, narrowing the increase from the previous week (0.22%). The Real Estate Board explained that prices rose mainly in reconstruction projects and popular complexes with expectations of deregulation, but the increase was slightly reduced due to the suspension of loans by commercial banks and interest rate hikes.

In Seoul, the largest price increases were seen in Nowon-gu (0.31%), Gangseo-gu (0.29%), Gangnam-gu (0.28%), and Songpa-gu (0.28%).

A price list for sale and jeonse posted at a real estate agency in Songpa-gu, Seoul [Image source=Yonhap News]

Jeonse prices are also continuing to rise.

In Seoul, apartment jeonse prices rose by 0.17%, the same as last week. The Real Estate Board analyzed, "Overall, the shortage of listings continues, and new record-high transactions occurred mainly in areas with relocation demand due to redevelopment projects and in areas with good transportation access such as station areas."

Nowon-gu (0.28%), which saw a large increase in sale prices, also experienced a significant rise in jeonse prices, and Yeongdeungpo-gu (0.20%), Dongjak-gu (0.20%), Songpa-gu (0.20%), Gangnam-gu (0.18%), and Gangdong-gu (0.18%) also continued to experience a shortage of jeonse listings.

Gyeonggi-do also saw jeonse prices rise by 0.30% this week, maintaining the same upward trend as the previous week. Ansan Danwon-gu (0.51%), Siheung-si (0.49%), Ansan Sangnok-gu (0.47%), and Gunpo-si (0.45%) showed significant increases.

Incheon’s jeonse price increase rate narrowed from 0.25% last week to 0.22% this week. Sejong City saw a shift to an upward trend from -0.03% last week to 0.04% this week, with jeonse prices rising mainly in small-to-medium-sized units in Sodam and Boram-dong.

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