Seoul Home Prices Rise in March Except for Three Gangnam Districts... Jeonse Growth Rate Hits Three-Month High (Update)

Korea Real Estate Board Releases March Housing Price Trend Survey

Gwangjin-gu Records Highest Increase Among Districts at 0.91%

Nowon-gu's Monthly Rent Price Index Rises by 0.99%

While the rise in housing sales prices in Seoul has been steadily declining, the rate of increase in monthly and jeonse rental prices has been expanding, according to recent data.

According to the nationwide housing price trend survey for March released by Korea Real Estate Board on April 15, the comprehensive housing sales price index in Seoul rose by 0.39% compared to the previous month. This represents a smaller increase than in January (0.91%) and February (0.66%) of this year. Last month’s growth rate was the lowest monthly figure since May of last year (0.38%).

By district, the gap between the Gangnam area and non-Gangnam areas was pronounced. All three districts of Gangnam saw declines, while the remaining 22 districts all posted increases. Specifically, Gangnam-gu fell by 0.39%, Songpa-gu by 0.09%, and Seocho-gu by 0.05%. This trend is believed to be due to an increase in properties being put up for sale at reduced prices as multi-homeowners seek to dispose of assets ahead of the planned increase in capital gains tax rates.

An apartment complex in Gangnam-gu, Seoul. Photo by Yonhap News Agency

In contrast, Gwangjin-gu recorded the largest increase at 0.91%, followed by Jung-gu (0.83%), Seongbuk-gu (0.81%), Yeongdeungpo-gu (0.76%), Seodaemun-gu (0.74%), Gangseo-gu (0.70%), and Jongno-gu (0.69%), all of which saw a marked upward trend. Gangdong-gu, Gangbuk-gu, Dobong-gu, and Dongjak-gu posted relatively smaller increases, ranging from 0.06% to 0.18%. In Incheon, there was no change at 0.00%, while Gyeonggi Province recorded a 0.26% increase.

The Korea Real Estate Board explained, “There is an increase in listings centered on Seoul and the greater metropolitan area, leading to transactions at lower prices, while upward transactions continue in some areas pushing for reconstruction projects, resulting in a mixed but overall upward trend.”

By housing type, the increase in apartment prices slowed significantly. Last month, the apartment sales price index rose by 0.34%, which is about half the previous month’s increase of 0.74%. On the other hand, row houses (from 0.64% to 0.53%) and detached houses (from 0.32% to 0.35%) showed relatively less fluctuation.

A property tax notice posted at a real estate agency in Jamsil, Songpa-gu, Seoul. Photo by Yonhap News

In contrast to the slowdown in sales price increases, the rise in jeonse prices accelerated. Last month, the comprehensive Seoul jeonse price index increased by 0.46%, up 0.11 percentage points compared to the previous month. After a steady decline in the rate of increase since December last year (0.53%), this marks a rebound in three months.

Seongbuk-gu (0.75%), Nowon-gu (0.70%), and Mapo-gu (0.61%) showed particularly large increases compared to other areas. The Korea Real Estate Board explained that the increase was centered in areas with stable residential conditions amid continued demand for jeonse contracts.

The monthly rent market showed a similar trend to jeonse. Last month, the monthly rent price index rose by 0.51%, the largest monthly increase so far this year. In particular, the monthly rent price index in Nowon-gu soared by 0.99% in just one month, continuing its upward trajectory. The index for Nowon-gu has climbed by a total of 2.64% over the past three months—0.78% in January, 0.87% in February, and 0.99% in March. According to the Korea Real Estate Board, this increase was mainly in areas near subway stations in Sanggye-dong and Junggye-dong. Seocho-gu also recorded a 0.74% increase over the previous month, and Gwangjin-gu was up by 0.73%.

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