After Toheje Expansion, Seoul Apartment Price Increase Stagnates for 2 Weeks... 'Gwacheon' Tops Nationwide

Nationwide Apartment Prices Remain Stable with Mixed Trends
Upward Momentum Centered on Redevelopment Complexes

In the last week of last month, apartment prices nationwide showed mixed results within a stable range. In Seoul, prices continued to rise mainly in redevelopment complexes and prime locations, while most regions in the provinces, including Daegu, Gwangju, and Jeju, experienced a decline. Jeonse prices also increased in Seoul and the metropolitan area but fell in some provincial areas.

According to the nationwide apartment price trends announced by the Korea Real Estate Agency on the 3rd, Seoul apartment sale prices in the 5th week of March (as of the 31st) rose by 0.11% compared to the previous week. Seoul apartment prices started at 0.14% in the first week (as of the 3rd), then increased to 0.20%, and further to 0.25% (the largest increase since 2018). However, with the expanded implementation of the Land Transaction Permission System (Toheoje) from the 24th of last month, the increase eased to 0.11% in the fourth week (as of the 24th).

All major redevelopment complexes in the Gangnam 4 districts (Gangnam, Seocho, Songpa, Gangdong) as well as in Gangbuk saw price increases. The rise rate in the 11 districts of Gangnam increased slightly from 0.14% to 0.15%. In the 14 districts of Gangbuk, the upward trend slowed from 0.07% last week to 0.06%.

By district, the largest increases were in Seongdong-gu (0.30%), Songpa-gu (0.28%), Gangnam-gu (0.21%), Yongsan-gu and Yangcheon-gu (0.20%), Mapo-gu (0.18%), Seocho-gu and Yeongdeungpo-gu (0.16%), and Gangdong-gu (0.15%). Gangnam-gu's rise was mainly driven by redevelopment projects in Gaepo-dong and Apgujeong-dong, Yangcheon-gu by Mok-dong and Sinjeong-dong, and Yeongdeungpo-gu by Sin-gil and Yeouido-dong. The upward trend in redevelopment complexes is analyzed to have influenced these increases.

In Gyeonggi-do, Gwacheon-si recorded the highest apartment price increase nationwide at 0.39%, followed by Seongnam Sujeong-gu (0.27%) and Bundang-gu (0.24%), while Gimpo-si (-0.18%) and Anseong-si (-0.19%) saw declines. In Incheon, prices fell overall by 0.03%, narrowing the decline from the previous week (-0.07%). Michuhol-gu (0.04%) and Bupyeong-gu (0.03%) experienced price increases.

Most provincial areas continued to see declines. Daegu (-0.09%), Daejeon (-0.07%), Gwangju (-0.07%), Gyeongbuk (-0.07%), and Jeju (-0.06%) had significant drops, and Sejong also saw an expanded decline of -0.07%.

Nationwide apartment sale prices recorded a 0.01% decline, the same as the previous week. The metropolitan area as a whole rose by 0.03%, while the provinces saw an expanded decline of -0.05%. The Korea Real Estate Agency stated, "Demand for redevelopment complexes remains steady, but due to increased cautious sentiment, transaction volumes are low, resulting in a mixed market overall."

Week-on-week apartment sale price index change rate for the last week of March (left) and jeonse price index change rate. Provided by Korea Real Estate Board

Apartment Jeonse prices nationwide rose by 0.02%, the same increase as the previous week. Seoul's Jeonse prices increased by 0.05%, continuing the upward trend, though the increase was 0.01 percentage points smaller than the previous week. Gangdong-gu (0.16%), Songpa-gu (0.15%), and Yeongdeungpo-gu (0.10%) saw increases, but Seocho-gu declined by 0.01%, mainly in Seocho-dong and Bangbae-dong.

Gyeonggi-do rose by 0.03%, with Gwacheon-si (0.27%), Seongnam Bundang-gu (0.20%), and Anyang Dongan-gu (0.22%) increasing. Incheon rebounded with a 0.01% rise. Michuhol-gu (0.13%) and Namdong-gu (0.08%) increased, while Seo-gu (-0.09%) declined.

Provincial Jeonse prices stabilized. Ulsan (0.09%) saw an expanded increase, and Sejong also rose by 0.03%. However, Daejeon (-0.07%) and Jeju (-0.05%) declined. In the provinces, the accumulation of listings and weak demand have combined to continue the downward trend.

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