Off-Season Vacation Period Ignored, Seoul Apartments Rise for 8 Consecutive Weeks

Real Estate R114 'Third Week of August Weekly Apartment Market in the Seoul Metropolitan Area'
Signs of Improvement Spreading in Non-Gangnam Areas

When crossing the Banpo Bridge in Seoul, you can see new apartments, old apartments, and apartments under construction all at once in the Sinbanpo area. The new apartments on the left are Acro Riverview Sinbanpo, the low old apartments on the right are Sinbanpo 2nd Complex, and the apartments under construction in the back are the Maple Xi new construction site. Photo by Huh Younghan younghan@

Despite entering the peak vacation season of 'late July to early August,' Seoul apartment sale prices have risen for eight consecutive weeks. Demand has increased mainly in popular key areas, leading to a significant rise in apartment transaction volumes.

According to the 'Third Week of August Weekly Apartment Market Report for the Seoul Metropolitan Area' released by Real Estate R114 on the 3rd, subscription demand is concentrated in the pre-sale market, with the cumulative subscription competition rate for this year (January to July) reaching 149 to 1, showing signs of surpassing the 164 to 1 rate seen in 2021, which was known for indiscriminate subscription.

As subscription competition intensifies in new pre-sales, the number of applicants who give up tends to increase, leading to inflows into existing housing. Therefore, the increased apartment transaction volume is expected to continue, facilitating the absorption of listings.

Seoul apartment sale prices rose by 0.03%, an increase from last week's 0.02%. Both reconstruction and general apartments increased by 0.03%. New towns and Gyeonggi/Incheon each rose by 0.01%.

In Seoul, the upward trend that began in popular areas such as Gangnam is gradually spreading to improve the atmosphere in non-Gangnam areas. By individual districts, Dobong (0.12%), Gwangjin (0.08%), Dongjak (0.07%), Guro (0.07%), Gwanak (0.07%), and Gangseo (0.06%) showed notable increases.

In new towns, Dongtan (0.02%) and Bundang (0.01%) rose, while Wirye fell by 0.01%.

In Gyeonggi and Incheon, Hwaseong (0.06%), Uijeongbu (0.03%), Anyang (0.02%), Ansan (0.02%), Suwon (0.01%), and Gwangmyeong (0.01%) increased.

The jeonse (long-term lease) market showed the highest weekly increase in 2 years and 7 months last week (Seoul 0.05%) and continued a similar trend this week. Seoul rose by 0.05%, new towns remained flat (0.00%), and Gyeonggi/Incheon increased by 0.01%.

By individual districts in Seoul, increases were seen in Nowon (0.14%), Gangnam (0.13%), Guro (0.11%), Eunpyeong (0.09%), Seocho (0.05%), and Dongjak (0.05%).

In new towns, Jungdong (0.02%), Gimpo Hangang (0.01%), and Sanbon (0.01%) led the rise, while in Gyeonggi and Incheon, Hwaseong (0.10%), Suwon (0.05%), Icheon (0.04%), Incheon (0.03%), and Goyang (0.02%) drove the upward trend within their regions.

A Real Estate R114 official stated, "With the subscription market entering an overheated phase centered on popular areas such as Gangnam in Seoul, the government is busy preparing measures to quell the perception of supply shortage," adding, "Since the government announced plans for 2.7 million housing units plus α (about 120,000 units) through the August 16, 2022, and September 26, 2023, measures, it is necessary to recognize that the current market concerns lie more in 'execution' than in 'quantity.'"

He continued, "To resolve the current perception of supply shortage, in the short term, efforts should focus on actively expanding public supply through measures such as the planned release of greenbelt areas in urban centers. In the mid to long term, actively supporting private sector participation is necessary to maximize the effect of supply expansion."

He also said, "Through the government's targeted reforms of acquisition tax and capital gains tax, it is expected that not only will existing housing be put on the market, but also the concentration of demand on new constructions will be alleviated, leading to short-term supply effects. Therefore, we look forward to persuasive measures being announced soon."