Seoul Apartment Price Growth Slows for 5th Week... Gangnam 3 Districts and Yongsan Fall Again [Real Estate AtoZ]

Growth Slows in Key Districts Along the Hangang Belt

This week, the increase in apartment prices in Seoul slowed for the fifth consecutive week. While the government is reviewing regulatory measures for owners with multiple homes and for speculative single-home owners, the so-called "prime area" weakness also continued for the second week in a row.

According to the Korea Real Estate Board's weekly apartment price trend report for the first week of March (as of March 2), published on March 5, apartment prices in Seoul rose by 0.09% compared to the previous week. Since hitting a high of 0.31% in the fourth week of January this year, the rate of increase in Seoul has continued to decline for five straight weeks: from 0.27% to 0.22%, 0.15%, 0.11%, and 0.09%.

The three Gangnam districts and Yongsan-gu, which turned downward last week, continued to decline this week. In Songpa-gu (-0.03%→-0.09%), large complexes in Sincheon and Jamsil-dong led the drop. In Gangnam-gu (-0.06%→-0.07%), the decline was centered around Apgujeong and Daechi-dong. Seocho-gu (-0.02%→-0.01%) also maintained its downward trend. In Yongsan-gu (-0.01%→-0.05%), the decrease was focused in Ichon and Sanchon-dong.

In the northern part of Seoul, the upward trend also slowed, especially around the Hangang Belt. Seongdong-gu (0.20%→0.18%), Gwangjin-gu (0.20%→0.18%), and Mapo-gu (0.19%→0.13%) all saw reduced gains. South of the Han River, Gangdong-gu (0.03%→0.02%) and Dongjak-gu (0.05%→0.01%) also experienced narrower increases.

This trend is interpreted as being caused by two factors. First, with the exemption on the capital gains tax surcharge for multiple homeowners ending on May 9, listings from multiple homeowners seeking to avoid tax burdens are coming onto the market. Second, owners of expensive single homes, concerned about higher holding taxes if the tax system is revised in the future, are realizing profits by selling their properties. Both factors have pulled down prices in prime locations.

The Korea Real Estate Board analyzed, "Some complexes saw price-adjusted transactions as downward listings appeared, while complexes undergoing redevelopment or those with favorable living conditions experienced price increases. This resulted in a localized mixed trend, but overall, Seoul still posted an increase."

Four districts—Jung-gu (0.15%→0.17%), Jungnang-gu (0.06%→0.08%), Dobong-gu (0.04%→0.06%), and Yangcheon-gu (0.15%→0.20%)—saw their weekly gains widen compared to the previous week. In Gangseo-gu (0.23%→0.23%), small to mid-sized complexes in Yeomchang and Naebalsan-dong led the gains, while in Yangcheon-gu (0.15%→0.20%), increases were concentrated in Mok and Sinjeong-dong. In the northern part of Seoul, Dongdaemun-gu (0.21%→0.20%) rose mainly around Jeonnong and Dapsimni-dong subway station areas, while Seongbuk-gu (0.20%→0.19%) saw gains focused on large complexes in Gireum and Donam-dong.

Apartment Price Index Change Rates by City and Province for the First Week of March. Korea Real Estate Board

Nationwide, apartment sales prices rose by 0.04%, a slower increase than last week’s 0.05%. Jeju (-0.04%→-0.04%), Jeonnam (-0.04%→-0.04%), and Chungnam (-0.06%→-0.02%) continued their downward trends this week. Sejong (0.02%→-0.03%) and Daejeon (0%→-0.02%) switched to declines. In Sejong, prices dropped mainly in nearly new complexes in Areum and Goun-dong.

In Gyeonggi Province (0.10%), the rate of increase narrowed by 0.03 percentage points compared to the previous week. Yongin-si Suji-gu (0.61%→0.44%) maintained relative strength but its climb slowed, and Seongnam-si Bundang-gu (0.32%→0.16%), Suwon-si Yeongtong-gu (0.29%→0.16%), and Guri-si (0.39%→0.16%) also saw decelerating growth. Gwacheon-si (-0.05%) continued its decline for the third straight week.

However, Hanam-si (0.31%→0.33%), Gwangmyeong-si (0.15%→0.17%), and Dongtan-gu in Hwaseong-si (0.20%→0.28%) saw their gains expand. In Incheon, the rate of increase remained at 0.02%, the same as the previous week. The wider Seoul metropolitan area (Seoul, Gyeonggi, and Incheon) rose by 0.07%. In non-metropolitan areas (0.02%), the five major metropolitan cities rose by 0.01%, while the eight provinces each increased by 0.02%.

As for jeonse (long-term deposit rent) prices, the nationwide figure remained unchanged from the previous week at 0.07%. In Seoul (0.08%→0.08%), some areas influenced by new supply saw declines, but overall, the upward trend was maintained as demand from tenants focused on popular large complexes and neighborhoods near subway stations. In Gyeonggi Province, jeonse prices rose by 0.09% compared to the previous week, and in Incheon by 0.07%, resulting in a metropolitan-wide increase of 0.09%. In non-metropolitan areas (0.05%), the five major metropolitan cities rose by 0.06%, Sejong by 0.09%, and the eight provinces by 0.03%.

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