8 Out of 10 Seoul Apartment Transactions Are Under 1.5 Billion KRW... Genuine Demand Flows into Suburban Areas

The Share Has Steadily Increased Since May
Rising Prices in Outlying Areas Such as the Northeastern District
Nowon-gu Records the Highest Number of Transactions

The share of mid- to low-priced properties under 1.5 billion won in the Seoul apartment market is rapidly expanding. This trend is attributed to increased purchases by end-users in peripheral areas such as Nowon-gu, at a time when transactions of high-priced homes have slowed. On top of this, difficulties in finding rental homes in the jeonse market have led to a sharp increase in contract renewals for existing residences, further intensifying the stagnation in the lease market.

According to an analysis of the Ministry of Land, Infrastructure and Transport’s real transaction price disclosure system by the Seoul Metropolitan Government on September 18, the proportion of apartment transactions under 1.5 billion won, which stood at 72.4% in May, has gradually risen, reaching 79.9% last month.

An official from the Seoul Metropolitan Government commented, “The share of transactions under 1.5 billion won was high at the beginning of the year due to stricter lending regulations, but it temporarily decreased in April and May as high-priced home sales for tax-saving purposes increased. However, as end-user demand for mid- to low-priced homes grew again, the proportion of transactions under 1.5 billion won expanded once more in July and August, which in turn led to price hikes in outer-northeast districts.”

By district, Nowon-gu recorded the highest number of transactions at 415, with 99.8% of its transactions under 1.5 billion won. Dobong-gu, Gangbuk-gu, and Geumcheon-gu all recorded 100%, highlighting the dominance of mid- to low-priced, real-demand purchases in peripheral areas.

Proportion of apartment transactions under 1.5 billion KRW by autonomous district last month. Seoul City

Sharp Decline in Apartment Sales, Jeonse, and Monthly Lease Transactions in August

In August, the number of apartment transactions in Seoul dropped by 46.2% from the previous month, totaling 3,143. Transaction volume, which remained in the 5,000 range during June and July, sharply fell into the 3,000 range last month.

Jeonse transactions totaled 7,263, representing an 18% decrease from the previous month, while monthly lease transactions dropped 20.7% to 7,347.

A Seoul city official noted, “Even accounting for seasonal slowdowns, jeonse and monthly rental transactions declined significantly year-on-year by 32.3% and 18.7%, respectively. Even factoring in the reporting deadline at the end of September, this downward trend is expected to continue compared to last year.”

Apartment complex in Songpa-gu, Seoul. Photo by Kang Jin-hyung

In the jeonse market, there was a notable rise in the share of contract renewals, yet the use of contract renewal requests declined, producing conflicting trends. Renewals accounted for 58.9% of all jeonse transactions in August, a considerable increase from both the previous month (53%) and the same month last year (43.7%). However, the proportion of contract renewal right usage was 48.7%, lower than both the previous month (54.1%) and the same period last year (57%).

Seoul Apartment Sales and Jeonse Transactions Rose Across the Board in July

In July, the actual transaction price of Seoul apartments increased by 1.93% compared to the previous month and by 14.56% year-on-year.

Prices rose across all regions in Seoul, with particularly strong gains in the southeast and northeast sectors. In the southeast—Seocho, Gangnam, Songpa, and Gangdong—prices increased by 2.73% from the previous month. In the northeast—notably Gangbuk, Dobong, Nowon, and Seongbuk—prices climbed by 2.11%.

A city official explained, “In July, after the surge in urgent sales in high-priced areas was absorbed, general transactions at prevailing asking prices continued, while end-user demand flowed into mid-to-low-priced regions. This led to a sustained increase in actual transaction prices.”

During the same period, jeonse actual transaction prices rose 0.5% month-on-month. Notably, jeonse prices in the northeast increased by 0.88% and in the southeast by 0.86%, both posting significant gains. In contrast, the southwest region—Gangseo, Yangcheon, and Yeongdeungpo—fell by 0.13% compared to the previous month.

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