Seoul Apartment Prices Rise for 22 Consecutive Weeks... Increase Rate Slows Down

Sangam-dong Apartment. Photo by Jo Yongjun jun21@

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Seoul apartment prices continued to rise for the 22nd consecutive week, but the rate of increase narrowed. The 'Gangnam 3 districts' (Gangnam, Seocho, Songpa) and 'Mayongseong' (Mapo, Yongsan, Seongdong) led the upward trend. Meanwhile, there is also a cautious atmosphere due to the recently surged asking prices. The Seoul apartment jeonse market saw a larger increase compared to last week due to a shortage of listings.

According to the 'Weekly Apartment Price Trend for the Third Week of August (as of the 19th)' released by the Korea Real Estate Board on the 22nd, Seoul apartment sale prices rose by 0.28% this week compared to the previous week, marking 22 consecutive weeks of increase. However, this rise was smaller than the previous week's 0.32%, which was the highest increase in 5 years and 11 months.

An official from the Real Estate Board stated, "Price increases are occurring mainly in Seocho-gu and Gangnam-gu," adding, "Popular districts in northern Seoul such as Mapo-gu and Yongsan-gu show some cautious sentiment due to rising seller asking prices, but the upward trend is still maintained."

By district, Seocho-gu (0.59%), where prices rose mainly in preferred complexes along the Han River in Banpo and Jamwon-dong, recorded the highest increase. Seongdong-gu (0.57%), which saw price increases mainly in large complexes near Kumho-dong and Haengdang-dong station areas, followed.

Songpa-gu (0.48%), Mapo-gu (0.37%), Yongsan-gu (0.32%), Gangnam-gu (0.39%), Dongjak-gu (0.34%), and Gwangjin-gu (0.31%) also saw price increases in that order.

The overall increase rate in the metropolitan area narrowed from 0.18% last week to 0.17% this week. Apartment prices in Incheon (0.16%→0.15%) saw a slight decrease in the rate of increase, while Gyeonggi Province (0.10%→0.11%) experienced a larger increase.

In Gyeonggi Province, apartment prices in Gwacheon City (0.43%) showed strong growth, with Seongnam Bundang-gu (0.29%) and Hanam City (0.29%) also rising significantly.

Apartment prices in provincial areas showed a downward trend. The rate of decline narrowed from 0.02% last week to 0.01% this week.

In the jeonse market, the rate of increase in jeonse prices in Seoul and the metropolitan area grew. Nationwide, the rate of increase in jeonse prices also rose from 0.07% last week to 0.08% this week.

In Seoul, the jeonse price increase trend continued for 66 consecutive weeks. The rate of increase grew from 0.19% last week to 0.20% this week.

An official from the Real Estate Board explained, "Overall, the shortage of listings continues, and steady jeonse inquiries are centered on small to medium-sized units, with transaction prices and listing prices rising mainly in preferred complexes such as those near subway stations, school districts, and large complexes."

Seongdong-gu rose by 0.39%, mainly in Oksu-dong and Seongsu-dong 2-ga, while Gangnam-gu, which saw increases mainly in Gaepo and Yeoksam-dong, recorded a 0.31% rise. Gwangjin-gu (0.30%), which rose mainly in school districts in Guui and Gwangjang-dong, and Yeongdeungpo-gu (0.29%) also showed noticeable increases.

Jeonse prices in Incheon and Gyeonggi rose by 0.23% and 0.12%, respectively. Provinces, which showed a flat trend last week, returned to a decline this week with an average 0.01% drop in jeonse prices.

Busan (0.03%), Ulsan (0.03%), and Chungnam (0.03%) saw increases, while Sejong (-0.12%), Daegu (-0.08%), Jeju (-0.07%), Gyeongbuk (-0.05%), and Daejeon (-0.03%) experienced declines.

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