Reconstruction-themed Apartments Drive Seoul Home Prices Up... Non-Metropolitan Areas Fall for 52 Consecutive Weeks

Korea Real Estate Board Releases Apartment Price Trends for the Fourth Week of May
Seoul Apartment Sale Prices Rise for 17 Consecutive Weeks
Gwacheon Maintains Upward Trend... Sejong's Growth Slows

This week, apartment prices in Seoul rose more than the previous week, marking a 17th consecutive week of increases. Reconstruction complexes centered in the three Gangnam districts (Gangnam, Seocho, and Songpa) led the price gains. In contrast, nationwide apartment prices broke a two-week period of stability and turned downward.

According to the "Weekly Apartment Price Trends for the Fourth Week of May (as of the 26th)" released by the Korea Real Estate Board on the 29th, apartment sale prices nationwide fell by 0.02%. The Seoul metropolitan area maintained its rate of increase (0.03%→0.03%), but the decline in non-metropolitan areas widened (-0.04%→-0.06%). Apartment prices in non-metropolitan regions have now fallen for 52 consecutive weeks.

Apartment complexes in the Dongnae-gu and Geumjeong-gu areas of Busan. Photo by Yonhap News

Apartment sale prices in Seoul rose by 0.16% over the past week. The pace of increase has been accelerating every week in May: 0.08% in the first week, 0.10% in the second week, and 0.13% in the third week.

All districts in Seoul recorded increases, with the three Gangnam districts showing particularly strong gains. Gangnam District rose by 0.39%, recording the highest increase nationwide this week. Songpa District climbed 0.37%, and Seocho District rose 0.32%. Yangcheon District also increased by 0.31%, ranking fourth after the three Gangnam districts. All of these gains were centered on complexes undergoing or planning reconstruction. Nowon District (0.04%) and Dobong District (0.02%) also shifted from stability to increases compared to the previous week, while in the southwestern area, Gwanak District (0.05%), Guro District (0.04%), and Geumcheon District (0.02%) continued to rise.

The Korea Real Estate Board assessed, "While some areas and complexes are still seeing buyers take a wait-and-see approach, in preferred complexes such as those slated for reconstruction, asking prices are rising and actual transaction prices are also increasing."

In Gyeonggi Province, Gwacheon City (0.23%→0.30%) and Bundang District in Seongnam (0.21%→0.23%), both reflecting expectations for redevelopment projects, also showed strength. In contrast, Pyeongtaek City in Gyeonggi fell by -0.23%, with the decline widening compared to the previous week (-0.13%).

Sejong, which has drawn attention due to speculation about becoming the administrative capital, rose by 0.1%, though this was a smaller increase than the previous week (0.3%). North Jeolla Province (0.02%) saw an increase, while North Chungcheong Province (0.00%) remained unchanged. North Gyeongsang Province (-0.16%), Daegu (-0.14%), Gwangju (-0.09%), South Jeolla Province (-0.07%), Daejeon (-0.07%), Busan (-0.07%), South Gyeongsang Province (-0.05%), and Incheon (-0.04%) all saw declines.

The nationwide apartment jeonse (long-term lease) price index turned upward, rising by 0.01%. Jeonse prices also increased, particularly in Seoul. Seoul's jeonse prices rose by 0.06%, a 0.02 percentage point increase from the previous week. Songpa District increased by 0.16%, Gangdong District by 0.14%, Yeongdeungpo District by 0.11%, and Yangcheon District by 0.10%. Yongsan District (0.07%) and Gangnam District (0.06%) also saw increases. In contrast, Seocho District fell by 0.01%, making it the only district in Seoul where jeonse prices declined. Sejong's jeonse prices rose by 0.09%, a larger increase than the previous week (0.04%), and Gwacheon City in Gyeonggi Province (0.30%→0.23%) also saw an increase.

Apartment Sale Price Index Change Rates by City and Province for the Fourth Week of May. Provided by Korea Real Estate Board

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