Seoul Housing Prices Rise Again... Outlying Areas Lead the Uptrend

Real Estate 114, This Week's Apartment Price Trends in the Seoul Metropolitan Area

[Asia Economy Reporter Kim Hyemin] The apartment market in the Seoul metropolitan area, which had been quiet around Chuseok, has entered the full-fledged autumn moving season, leading to an expanded rate of increase. In Seoul, apartment prices are being driven up mainly by the outer areas where housing prices are relatively affordable. Despite a sharp drop in transactions, these areas continue to exhibit a seller's market atmosphere, resulting in a noticeable rise in housing prices.

According to Real Estate R114 on the 2nd, this week Seoul apartment sale prices rose by 0.12%, a larger increase compared to the week before Chuseok (0.08%). Reconstruction and general apartments rose by 0.14% and 0.12%, respectively. Additionally, Gyeonggi and Incheon increased by 0.1%, and new towns rose by 0.09%.

In Seoul, sale prices increased mainly in outer areas such as Gangbuk, Guro, and Gangseo. Gangbuk recorded the highest increase at 0.28%, followed by Guro (0.26%), Gangdong (0.22%), Gangseo (0.22%), and Seodaemun (0.2%).

In new towns, the order was Dongtan (0.2%), Gwanggyo (0.11%), Bundang (0.09%), Ilsan (0.09%), and Sanbon (0.09%). In Gyeonggi and Incheon, prices rose mainly in areas perceived as undervalued and around public land development sites such as the 3rd phase new towns. By region, the increases were Gunpo (0.21%), Suwon (0.15%), Siheung (0.15%), and Uijeongbu (0.15%).

The jeonse (long-term lease) market saw a 0.1% increase in Seoul as autumn moving demand flowed in amid a shortage of listings. Gyeonggi and Incheon rose by 0.06%, and new towns by 0.05%.

In Seoul, the influx of autumn moving demand is expanding the upward trend. By region, the increases were Guro (0.24%), Gangdong (0.2%), Gangbuk (0.2%), Gwangjin (0.2%), and Nowon (0.18%).

Senior Researcher Lim Byungcheol analyzed, "Despite the reduction in loan limits by financial institutions and the rise in the base interest rate, the Seoul metropolitan apartment market continues to be a seller's market. This is the result of a demand surplus caused by supply reduction, jeonse difficulties, and election-related issues."

He added, "Although a household debt management plan is scheduled to be announced this month, it is difficult for the current upward trend to easily reverse due to the influx of demand during the autumn moving season. On the contrary, if the instability in the jeonse market causes real demand to shift to purchases, the rate of increase could expand further." Regarding the jeonse market, he said, "As the shortage of listings continues, supply-demand instability is expected to worsen further with the arrival of the October autumn moving season."

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