Clear Polarization in Seoul Metropolitan Real Estate... Only Gangnam and Reconstruction Benefits Rise

Real Estate R114 Reports Seoul Sale Prices Rise for 5 Consecutive Weeks
High-Price Apartment Areas Like Seocho and Gangnam Increase... 1st Generation New Towns Still Hold Expectations

[Asia Economy Reporter Kim Hyemin] The polarization phenomenon in the apartment sales market in the Seoul metropolitan area is becoming more pronounced. Price increases continue mainly in areas with many high-priced apartments such as Seocho and Gangnam, as well as in the first-generation new towns.

According to Real Estate R114 on the 4th, the apartment sales prices in Seoul in the first week of June rose by 0.02% compared to the previous week. While redevelopment prices fell by 0.01%, general apartments increased by 0.03%.

Looking at the regions, areas with many high-priced apartments such as Seocho and Gangnam saw price increases, whereas areas densely populated with mid-to-low-priced apartments such as Nowon and Eunpyeong experienced declines. Seocho rose the most, increasing by 0.11% compared to the previous week. This was followed by ▲Gangnam (0.07%) ▲Yeongdeungpo (0.04%) ▲Mapo (0.03%) ▲Gangdong (0.02%) ▲Yangcheon (0.02%). Conversely, ▲Nowon fell the most, down 0.06% compared to the previous week. This was followed by ▲Eunpyeong (-0.05%) ▲Gwanak (-0.04%) ▲Jungnang (-0.03%) ▲Seongbuk (-0.02%).

New towns rose by 0.01% compared to the previous week, buoyed by expectations for redevelopment in the first-generation new towns. By region, prices increased in the order of ▲Bundang (0.1%) ▲Ilsan (0.05%) ▲Jungdong (0.04%) ▲Sanbon (0.01%), while ▲Gwanggyo (-0.14%) and ▲Dongtan (-0.11%) declined.

Gyeonggi and Incheon showed stable prices. By region, prices rose in the order of ▲Icheon (0.1%) ▲Gimpo (0.04%) ▲Paju (0.04%) ▲Anyang (0.03%), while Hwaseong (-0.07%) and ▲Incheon (-0.03%) fell.

The jeonse (long-term lease) market in Seoul turned to an increase after one week. It rose by 0.03% compared to the previous week, marking the highest increase so far this year. Among the 25 autonomous districts, eight areas including Songpa, Seocho, Mapo, and Yeongdeungpo saw increases, while six areas including Gwanak, Seodaemun, and Seongbuk declined. The rest remained stable.

New towns fell by 0.02% compared to the previous week, and Gyeonggi and Incheon remained stable.

Yoon Jihae, chief researcher at Real Estate R114, said, "Ahead of the election, various development pledges have been made, but demand is polarized, focusing only on areas with definite positive factors. With the one-year postponement of the capital gains tax surcharge for multi-homeowners and the tax base for property tax approaching, listings are accumulating in outer areas, but due to the financial limitations of buyers, transactions are not materializing."

Chief researcher Yoon added, "As August approaches, marking the second year since the implementation of the three lease laws, volatility in jeonse prices is increasing. Due to the higher burden of jeonse prices compared to the past, the trend toward monthly rent is accelerating. Although lease deposit loans are relatively less regulated, the burden of loan interest continues to increase amid rising interest rates, so non-homeowners with actual demand are expected to face deeper dilemmas between choosing to buy, jeonse, or monthly rent."

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