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 proportion of transactions involving mid- to low-priced apartments priced at 1.5 billion won or less in the Seoul apartment market is expanding rapidly. This trend is attributed to end-user demand flowing into outlying areas such as Nowon-gu, as transactions involving high-priced homes have slowed. Additionally, in the jeonse rental market, it is becoming more difficult to find new homes, leading to a sharp increase in the share of contract renewals with existing tenants, further intensifying the stagnation in the leasing market.

According to an analysis conducted by the Seoul Metropolitan Government on September 18 using the Ministry of Land, Infrastructure and Transport's actual transaction price disclosure system, the proportion of apartment transactions at or below 1.5 billion won has been steadily increasing since reaching 72.4% in May, rising to 79.9% last month.

A Seoul city official commented, "While the proportion of transactions for apartments under 1.5 billion won was high at the beginning of the year due to lending regulations, it temporarily shrank in April and May as tax-minimizing trades of high-priced homes increased. However, as demand for mid- to low-priced units revived, the share of such transactions expanded again in July and August. This has also led to price increases even in outlying areas like the northeastern part of the city."

By district, Nowon-gu recorded the highest number of transactions at 415, with an overwhelming 99.8% of those transactions under 1.5 billion won. In Dobong-gu, Gangbuk-gu, and Geumcheon-gu, the ratio reached 100%, highlighting robust end-user demand for mid- and low-priced homes in outlying regions.

Apartment Transactions Below 1.5 Billion KRW by Autonomous District Last Month. Seoul City

August Sees Declines in Sales, Jeonse, and Monthly Lease Transactions for Apartments

In August, the total number of apartment transactions in Seoul declined 46.2% month-on-month to 3,143. After hovering above 5,000 cases in June and July, the figure fell sharply to the 3,000 level last month.

Jeonse lease transactions totaled 7,263, an 18% decrease from the previous month, while monthly rental transactions fell 20.7% month-on-month to 7,347.

A Seoul city official said, "Even when taking into account the seasonal off-peak period, jeonse and monthly lease transactions dropped sharply by 32.3% and 18.7% respectively compared to the same month last year. Given that the reporting deadline runs to the end of September, a year-on-year decline is expected to persist."

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

In the jeonse market, the share of contract renewals surged, but the proportion of tenants exercising their right to renewal decreased, indicating contrasting trends. The ratio of renewal contracts among all jeonse transactions reached 58.9% in August, up sharply from 53% the previous month and 43.7% a year earlier. Conversely, the share of renewal-right claims dropped to 48.7%, down from 54.1% the previous month and 57% in the same period last year.

July Sees Steep Rises in Both Apartment Sales and Jeonse Prices in Seoul

In July, the actual sales price of Seoul apartments rose 1.93% from the previous month and 14.56% from the same period last year.

Prices increased across all residential zones in Seoul, with the southeastern and northeastern regions seeing particularly pronounced gains. The southeastern region—including Seocho, Gangnam, Songpa, and Gangdong—experienced a 2.73% month-on-month increase, while the northeastern area—including Gangbuk, Dobong, Nowon, and Seongbuk—saw a 2.11% increase.

A city official explained, "In July, following a rush of quick sales in high-priced areas, regular transactions at prevailing asking prices became more common, and as end-user demand streamed into mid- and low-priced regions, the upward trend in actual transaction prices persisted."

During the same period, the actual jeonse price for apartments increased 0.5% from the previous month. The northeastern and southeastern regions posted strong gains of 0.88% and 0.86%, respectively. In contrast, the southwestern area—including Gangseo, Yangcheon, and Yeongdeungpo—saw a 0.13% decrease from the previous month.

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