Seoul Apartment Price Growth Slows After 4 Weeks... Jeonse Prices Surge Further in Gangseo and Guro [Real Estate AtoZ]

Korea Real Estate Board, Weekly Apartment Price Trends

The increase in apartment prices in Seoul has slowed for the first time in four weeks. This is due to a contraction in the rate of price growth in key areas such as the three Gangnam districts and the Han River Belt. While the overall jeonse (long-term rental deposit) prices in Seoul have also seen a slower rate of increase, the pace of growth has expanded in some mid- to low-priced residential areas, including Gangseo-gu, Guro-gu, and Geumcheon-gu.

An apartment in Mapo-gu, Seoul. Photo by Jinhyung Kang

According to the weekly apartment price trend data released by the Korea Real Estate Board on May 28, as of the fourth week of May (based on May 25), Seoul's apartment sales prices rose by 0.25% compared to the previous week. Although this growth rate is down by 0.06 percentage points from last week's 0.31%, marking the first reduction in four weeks, it remains high compared to the 0.05-0.1% range seen since the end of February this year.

The Korea Real Estate Board explained, "Localized price increases continue to be observed, mainly in areas undergoing reconstruction projects or large apartment complexes," adding, "However, in other regions, transactions have slowed somewhat due to a wait-and-see attitude among both buyers and sellers."

The contraction in the rate of increase was led by the three Gangnam districts. Seocho-gu saw its growth rate slow from 0.26% to 0.20%, Gangnam-gu from 0.20% to 0.14%, and Songpa-gu from 0.38% to 0.28%. Other Han River Belt districts outside Gangnam, such as Yongsan-gu (0.22% to 0.15%) and Seongdong-gu (0.32% to 0.30%), also saw a decrease in their rates of increase.

Apartment Transaction Price Index Rate of Change by Province. Korea Real Estate Board

On the other hand, the districts with the highest rates of increase were all in the northern part of Seoul. Gangbuk-gu recorded a 0.42% rise, ranking first among Seoul's 25 districts, while Jung-gu, where most transactions were centered around Sindang-dong and Hwanghak-dong, rose by 0.41%, nearly double the previous week's 0.22%. Seongbuk-gu (0.49% to 0.37%) and Dobong-gu (0.37% to 0.34%) also outpaced the Seoul average.

In Gyeonggi Province, the overall apartment price growth rate slowed from 0.12% to 0.09%. However, Dongtan-gu in Hwaseong City accelerated, rising to 0.49% from the previous week's 0.46%. This was followed by Jungwon-gu in Seongnam (0.47% to 0.41%) and Gwangmyeong City (0.68% to 0.30%). Icheon City (-0.21% to -0.22%) and Pyeongtaek City (-0.07% to -0.14%) continued to experience declines.

In non-capital regions (-0.01%), the five major metropolitan cities and Sejong City each dropped by 0.02% and 0.05%, respectively, while the eight provinces saw a 0.01% increase. The nationwide average increase in apartment sales prices was 0.06%, slightly down from the previous week's 0.07%.

Apartment Jeonse Price Index Change Rate by City/Province. Korea Real Estate Board

Nationwide, apartment jeonse prices increased by 0.10% compared to the previous week.

In Seoul's jeonse market, the overall rate of increase fell slightly from 0.29% to 0.26%. However, the strength in the northern districts remained evident. The average rate for the 14 northern districts was 0.29%, exceeding the Seoul average, and once again outpacing the 11 southern districts (0.24%). While the sales market saw a deepening wait-and-see sentiment, the jeonse market experienced increased price pressure in mid- to low-priced residential areas where real demand is concentrated.

This week's top districts for jeonse price increases included Seongbuk-gu (0.47% to 0.44%), Seongdong-gu (0.49% to 0.42%), Songpa-gu (0.51% to 0.42%), Dobong-gu (0.42% to 0.41%), and Gwangjin-gu (0.42% to 0.40%). Among the three Gangnam districts, only Songpa-gu (0.51% to 0.42%) ranked among the top districts for growth.

Districts where the rate of increase grew compared to last week included Gangseo-gu (0.24% to 0.31%), Guro-gu (0.16% to 0.25%), Dongjak-gu (0.15% to 0.25%), Yeongdeungpo-gu (0.26% to 0.28%), Geumcheon-gu (0.16% to 0.18%), and Gwanak-gu (0.20% to 0.22%). In Gangseo-gu, the increase was mainly driven by small to medium-sized apartments in Gayang-dong and Naebalsan-dong. In Guro-gu, the rise centered on Sindorim-dong and Gaebong-dong. Yeongdeungpo-gu saw increases led by large complexes in Singil-dong and Yeouido-dong.

The Korea Real Estate Board commented on the Seoul jeonse market, stating, "Rental inquiries continue to increase, and pent-up demand is accumulating in highly preferred complexes such as large-scale developments and areas near subway stations. Price increases were observed in listings that were well-maintained."

In Gyeonggi Province (0.14%), Gwacheon City (-0.27% to -0.23%) and Icheon City (-0.08% to -0.13%) continued their downward trend. Dongtan-gu in Hwaseong (0.42% to 0.44%) saw increases mainly in large complexes in Bansong-dong and Sancheok-dong. Jungwon-gu in Seongnam (0.33% to 0.35%) saw increases centered on Geumgwang-dong and Yeosu-dong, while Gwangmyeong City (0.72% to 0.34%) saw growth focused on Haan-dong and Cheolsan-dong.

In non-capital regions (0.03%), the five major metropolitan cities rose by 0.03%, Sejong City by 0.14%, and the eight provinces by 0.02% each.

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