"With No Sellers and Buyers Lining Up, Outskirts Apartments Lead Seoul's Price Surge [Real Estate AtoZ]"

Seongbuk-gu, Seodaemun-gu, and Gangseo-gu Each Rise 0.27%

Gangnam's Three Districts in Negative Territory... Mid- to Low-Priced Areas Drive Seoul's Gains

"Those Willing to Sell Have Already Sold, but Demand Remains Strong"

Panorama of Apartment Complexes in Seoul City

"In this area, you can get a mortgage loan up to the maximum limit of 600 million won, so it's definitely a place where you can afford to buy your own home. There are so many inquiries asking to be notified as soon as a property becomes available that prices are rising," said a real estate agent in Donam-dong, Seongbuk-gu.

As the buying trend for apartments in Seoul shifts toward the outskirts, prices are being pushed up. With limited supply and concentrated demand, homeowners are raising prices. The demand for jeonse (long-term lease) remains steady, but with few listings available, jeonse prices are also rising. As a result, more people are opting to purchase homes instead, according to industry insiders.

According to the Korea Real Estate Board on April 2, as of the fifth week of March (based on data from the 30th), the average apartment sale price in Seoul rose by 0.12% compared to the previous week. The increase in prices was especially notable for mid-to-low-priced apartments in areas where such properties are concentrated, causing the overall weekly rise in Seoul to expand from 0.06% in the previous week. Seongbuk-gu, Seodaemun-gu, and Gangseo-gu each recorded a 0.27% increase, marking the highest growth rates across Seoul.

Jung-gu and Gwanak-gu followed with increases of 0.26% each, while Nowon-gu and Guro-gu saw rises of 0.24%. Meanwhile, the three Gangnam districts continued to weaken for the sixth consecutive week: Gangnam-gu fell by 0.22%, Seocho-gu by 0.02%, and Songpa-gu by 0.01%.

The surge in apartment purchases in outlying areas is believed to be linked to the rise in jeonse prices. For Seoul apartments, the cumulative jeonse price change rate for this year has reached 1.61%, far surpassing the 0.32% recorded during the same period last year. As jeonse deposits climb sharply, additional demand to purchase homes is also contributing to the overall price increase.

B, a real estate agent in Hongje-dong, Seodaemun-gu, explained, "Many people are deciding to buy a home now because they can't afford the continually rising jeonse prices. Anyone planning to sell a property to prepare for the heavier capital gains tax on multiple homeowners has already sold, so there are almost no listings left." C, a real estate agent in Mia-dong, Gangbuk-gu, added, "There has been a surge in homebuyers recently, driving prices up. For example, the price for an 84-square-meter unit has risen by nearly 100 million won since the beginning of the year."

Yongsan-gu has seen positive price growth for five consecutive weeks, and Dongjak-gu, after two weeks of declines, has also turned positive. In these areas, demand is so strong that buyers are willing to pay higher prices, shifting the balance toward sellers. D, a real estate agent in Sangdo-dong, Dongjak-gu, said, "All the urgent listings that appeared due to the heavier capital gains tax have already been snapped up, and now it's the buyers who are feeling more urgency. There have been no transactions for a week simply because there are no properties available."

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

Experts predict that the price increases in Seoul's outlying areas will continue for the time being. Due to lending regulations, the mortgage limit for apartments in Seoul and the greater metropolitan area is up to 600 million won for properties priced at 1.5 billion won or less, but the available loan amount decreases for more expensive properties. As a result, there is inevitably increasing demand—especially among young people and newlyweds—for apartments priced at or below 1.5 billion won, where the full mortgage benefit can be utilized.

Kim Hyosun, Chief Real Estate Expert at KB Kookmin Bank, said, "Because jeonse and monthly rent prices have risen, many believe now is a good time to buy a home. Some also expect lending regulations to tighten further, which is sustaining buying momentum." She added, "Since there is a clear upper limit for mortgage loans at apartment prices of 1.5 billion won, we are also seeing buyers shift their target areas based on this threshold."

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