Seongbuk-gu Housing Prices Surge Over 10% Cumulative Growth This Year... Gileum New Town Leads the Trend

Seoul Apartment Prices Up 0.25% From Previous Week
Seongbuk-gu Surpasses 10% in Cumulative Growth
End-User Demand Focused on Gileum New Town

This year, the cumulative increase in housing prices in Seongbuk-gu has surpassed 10%. As the current market trend continues to see lower- and mid-priced apartments under 1.5 billion won rise in price, housing prices in Seongbuk-gu—where new apartment complexes in the sub-2-billion-won range are concentrated—have climbed sharply.

According to apartment price trend data released on July 30 by the Korea Real Estate Board for the fifth week of this month (as of the 27th), apartment sale prices in Seoul rose by 0.25% compared to the previous week. Seoul housing prices posted a 0.3% increase for two consecutive weeks from the first week of the month, before showing a slight downward trend in the third week.

A panoramic view of Gireum New Town, Seongbuk-gu, Seoul. Photo by Yonhap News Agency

However, housing prices in the outskirts of Seoul have not shown any decline. On a weekly basis, Jungnang-gu recorded the highest increase among Seoul’s 25 districts, with prices rising 0.53% from the previous week. Nowon-gu followed, with a 0.46% increase, continuing a four-week upward streak. Housing prices in Seongbuk-gu rose by 0.39% compared to the previous week. While Seongbuk-gu peaked at a 0.51% weekly increase in the first week of the month and has since seen four consecutive weeks of mild declines, it still recorded the third-highest growth rate among the 25 autonomous districts.

In terms of cumulative growth, Seongbuk-gu in Seoul posted the largest increase at 10.31%. This is a dramatic jump compared to the same period last year, when the growth rate was 1.49%. Seongbuk-gu was the only district among the 25 in Seoul to surpass the 10% mark. It was followed by Guro (8.8%), Gangseo (8.78%), Seodaemun (8.04%), and Dongdaemun (7.97%) in terms of cumulative price increases.

The continued price increases centered on Gileum New Town are believed to have driven the cumulative growth rate in Seongbuk-gu. Last year, prices of expensive apartments soared mainly in the Hangang Belt, but this year, the prices of lower- and mid-priced complexes have risen, closing the price gap. In particular, Gileum New Town has seen a surge in end-user demand, thanks to its proximity to major business districts such as Seoul City Hall and Gwanghwamun, resulting in sharp price increases for new complexes like Raemian Centerpiece and Lotte Castle Classia. In fact, a standard 84-square-meter Lotte Castle Classia apartment set a record price last month at 1.87 billion won, up about 400 million won from 1.473 billion won a year earlier.

However, experts noted that further growth in prices for lower- and mid-priced areas will depend on market trends. Hyosun Kim, Chief Real Estate Analyst at KB Kookmin Bank, said, "In Nowon-gu, many apartment complexes are approaching the timeline for redevelopment, while in Gileum New Town, strong buyer demand is being driven by excellent access to the city center and the number of new large-scale complexes. However, should financial market instability and tax burdens intensify, there is a possibility that the current pace of increases could slow to some extent," she said.

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