Home Prices Defy Ultra-Strong Regulations... Seoul Apartment Prices Surge 15% in First Year of Lee Administration

Key Non-Gangnam and Gyeonggi Areas Up 20%
Sale and Jeonse Prices Rise in the Fourth Week of June

Despite three rounds of ultra-strong real estate regulatory measures introduced since the launch of the Lee Jaemyung administration, apartment prices in Seoul have surged by more than 15% over the past year. In particular, due to the paradoxical effects of regulations targeting Gangnam, non-Gangnam areas such as Gwangjin and Dongjak have seen price jumps of over 20%, while weekly jeonse prices have also risen across the board, indicating signs of overheating in the market.

Property listing posted on the 8th at a real estate agency in Gangnam-gu, Seoul. Photo by Yonhap News.

According to the latest price survey by Real Estate 114 on June 27, apartment prices in Seoul have soared by more than 15% cumulatively over the year since the start of the Lee Jaemyung administration. Nationwide, the rate of increase stands at around 9%.

An official from Real Estate 114 commented, "Given that the current administration has implemented three major rounds of ultra-strong measures, including the June 27 Measures, the October 15 Measures, and the reinstatement of the heavy capital gains tax for multi-homeowners, it is questionable whether these policies actually had any effect in suppressing prices."

The official added, "When broken down by region, over the past year under the current administration, non-Gangnam districts in Seoul such as Gwangjin-gu, Dongjak, Jung-gu, Gangdong, and Seongdong have all seen price surges of over 20%, while in Gyeonggi Province, areas such as Seongnam, Gwangmyeong, Hanam, Anyang, Yongin, and Gwacheon have experienced jumps of more than 10%. It is now time to watch whether the government’s upcoming measures—including tax reform, expanded supply, institutional improvements, and financial regulations—will lead to a policy shift, especially with tax reforms and a major discussion forum scheduled for next month."

Nationwide Apartment Sale and Jeonse Prices Rise in the Fourth Week of June

According to Real Estate 114’s AI price survey, nationwide apartment sale prices rose by 0.13% in the fourth week of June. Seoul increased by 0.14%, Gyeonggi and Incheon by 0.17%, resulting in an overall 0.16% rise in the greater Seoul area.

In areas outside the greater Seoul area, the five major metropolitan cities recorded a 0.02% increase, while other regions rose by 0.04%.

Out of the 17 provinces and major cities nationwide, 12 saw price increases and 5 saw declines, highlighting a clear upward trend.

In the fourth week of June, nationwide apartment jeonse prices also rose by 0.14%. Seoul was up by 0.15%, Gyeonggi and Incheon by 0.18%, leading to a 0.17% increase in the greater Seoul area. The five major metropolitan cities and other provinces rose by 0.06% and 0.08%, respectively.

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