Despite Loan Regulations, Housing Prices in the Seoul Metropolitan Area Continue to Rise... Jeonse Prices Also Jump

October First Week Nationwide Housing Price Trend Survey
Gyeonggi-do and Incheon See Increased Rise Compared to Previous Week
Jeonse Price Instability Continues... Loan Restriction Effect Decreases

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

Although the government's tightening of loan regulations has somewhat slowed the buying momentum, apartment prices in the Seoul metropolitan area, including Gyeonggi-do and Incheon, continue to rise sharply. Jeonse prices are also showing a more unstable trend as the rate of increase expands not only in Seoul and the metropolitan area but also in provincial regions.

According to the nationwide housing price trend survey for the first week of October released by the Korea Real Estate Board on the 7th, apartment prices nationwide rose by 0.28% as of the 4th, an increase from the previous week's 0.24%. While the metropolitan area rose by 0.34%, the same as the previous week, the rate of increase in provincial areas expanded significantly from 0.16% to 0.22%.

Seoul saw a 0.19% increase this week. Nowon-gu, where expectations for reconstruction are high, recorded the largest increase at 0.26%, followed by Mapo-gu (0.24%) and Yongsan-gu (0.24%), where new record prices continued. The Gangnam 3 districts?Gangnam-gu (0.25%), Seocho-gu (0.23%), and Songpa-gu (0.22%)?saw some transactions fall below record prices, slightly reducing the rate of increase.

Additionally, Gangseo-gu (0.24%) saw price increases mainly in Magok District and Gayang-dong, while Geumcheon-gu (0.19%) experienced rises primarily in the mid-to-low price areas of Doksan and Siheung-dong. The Real Estate Board explained that "due to the increase in mortgage interest rates and reduction in loan limits by banks, buying sentiment has somewhat weakened, maintaining last week's rate of increase."

Incheon (0.43%→0.44%) and Gyeonggi-do (0.40%→0.41%) saw their rates of increase grow compared to the previous week. In Incheon, buying demand concentrated in areas with significant development prospects such as Yeonsu-gu (0.64%) and Gyeyang-gu (0.50%). In Gyeonggi-do, areas perceived as low-priced like Osan-si (0.71%) and Pyeongtaek-si (0.64%), which has many mid-to-low price complexes, saw large increases.

Hwaseong-si (0.59%), Uiwang-si (0.58%), and Gunpo-si (0.54%), which have favorable living conditions, also continued their upward trends.

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

Instability in the jeonse market also continued. Both the metropolitan area (0.21%→0.24%) and provincial regions (0.11%→0.16%) saw expanded rates of increase, raising concerns about the autumn jeonse shortage.

Seoul's jeonse prices rose by 0.14%, the same as the previous week. While the upward trend continued mainly in complexes with good transportation and living environments, some complexes that experienced rapid price increases over a short period saw accumulated listings and a reduced rate of increase, showing regional differences.

In Seoul, Mapo-gu (0.19%), Jung-gu (0.19%), and Eunpyeong-gu (0.17%) recorded particularly large increases. Gangdong-gu (0.18%), Gangnam-gu (0.15%), Yeongdeungpo-gu (0.19%), and Dongjak-gu (0.18%) also saw significant rises in jeonse prices.

Incheon rose by 0.30% this week, expanding from 0.27% the previous week. Yeonsu-gu (0.62%) saw price increases mainly in newly built complexes in the well-maintained residential area of Songdo New City, while Michuhol-gu (0.35%) experienced rises centered on mid-to-low price older complexes in Dohwa-dong and large complexes in Yonghyeon-dong.

Gyeonggi-do also rose by 0.28%, a sharper increase than the previous week's 0.24%. Jeonse supply shortages continued in Yangju-si (0.57%), Siheung-si (0.53%), Anseong-si (0.47%), and Namyangju-si (0.37%).

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