Capital Region Apartment Prices Rise for 2nd Week with Narrowed Gains..."Impact of Stricter Loan Regulations"

Korea Real Estate Board Apartment Price Trends for 4th Week of September
Seoul, Gyeonggi, and Incheon All Show Reduced Increase
Buying Demand Slows Due to Strengthened Loan Regulations

Apartment views in the Songpa-gu and Gangnam-gu areas of Seoul [Image source=Yonhap News]

The apartment price increase rate in the Seoul metropolitan area, including Seoul, has decreased for two consecutive weeks. The rise in apartment jeonse prices also slowed compared to the previous week. This is interpreted as being influenced by fatigue from the prolonged surge and the government's move to strengthen loan regulations.

According to the weekly apartment price trend data for the fourth week of September announced by the Korea Real Estate Agency on the 30th, as of the 27th, apartment prices in the metropolitan area rose by 0.34%, a smaller increase compared to the previous week (0.36%). The metropolitan area had maintained the highest-ever increase rate for nine consecutive weeks since the second week of July, but in the past two weeks, it has slowed down from 0.40% to 0.36% and then to 0.34%.

In the metropolitan area, the increase rates in Seoul, Gyeonggi-do, and Incheon all decreased. In Seoul, the apartment price increase rate shrank from 0.20% last week to 0.19% this week. The Real Estate Agency explained, "While reconstruction and mid-to-low priced apartments with expectations of deregulation rose, the increase narrowed for two consecutive weeks due to the rise in bank mortgage loan interest rates, reduction in loan limits, and the impact of the Chuseok holiday."

In Seoul, Gangseo-gu, where recent buying demand has increased mainly for new buildings in Magok, rose by 0.28% this week. The Gangnam 3 districts?Gangnam-gu (0.25%), Seocho-gu (0.25%), and Songpa-gu (0.24%)?also saw significant price increases centered on major reconstruction projects, and districts such as Nowon-gu (0.23%), Yongsan-gu (0.23%), and Eunpyeong-gu (0.20%) maintained relatively high buying demand.

Incheon rose by 0.43% this week, slightly down from 0.45% last week. However, Yeonsu-gu (0.65%) and Gyeyang-gu (0.49%) still showed high increase rates due to transportation development benefits and perceptions of undervaluation. Gyeonggi-do rose by 0.40%, with the increase rate decreasing for three consecutive weeks (0.51% → 0.49% → 0.43% → 0.40%). The increase was significant in Osan-si (0.67%), Hwaseong-si (0.64%), Uiwang-si (0.59%), Gunpo-si (0.58%), and Siheung-si (0.57%).

Sejong saw apartment prices fall by 0.02%, a larger decline than the previous week (-0.01%). The Real Estate Agency explained, "Due to the impact of new housing supply, most areas showed flat or declining trends, slightly expanding the decline compared to the previous week."

View of Jugong 5 Complex, Songpa-gu, Seoul [Image source=Yonhap News]

The jeonse market also saw a reduction in most increase rates. In Seoul (0.15% → 0.14%), the upward trend continued mainly in popular complexes and mid-to-low priced apartments, but transactions shrank due to the reduction in bank jeonse loan limits and the impact of the Chuseok holiday, resulting in a decrease in the increase rate for two consecutive weeks.

However, Mapo-gu (0.19%), Jung-gu (0.19%), Nowon-gu (0.18%), and Seodaemun-gu (0.18%) showed relatively steep increases. Yeongdeungpo-gu (0.19%) saw continued jeonse demand mainly in Yeongdeungpo and Dangsan-dong, adjacent to the Yeouido business district, and Dongjak-gu (0.18%) maintained demand mainly in Noryangjin and Sangdo-dong, influenced by relocation demand from redevelopment projects.

Gyeonggi-do also saw the increase rate shrink from 0.27% to 0.24%. Siheung-si (0.50%) saw jeonse prices rise mainly in Mokgam and Jeongwang-dong, which are perceived as relatively low-priced and near subway stations, and Yangju-si (0.50%) saw increases mainly in the well-maintained residential area of Goeup District. Incheon’s apartment jeonse prices rose by 0.27%, an increase compared to 0.24% last week.

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