Gangnam Prices Fall for 10th Straight Week... Seoul Apartment Price Gains Widen as Yongsan Rebounds and Northern Seoul Strengthens [Real Estate A to Z]

Korea Real Estate Board: Weekly Apartment Price Trends for the Second Week of October
Number of Areas in Gyeonggi with Increases of 0.5% or More Rises from 2 to 11

Apartment prices in Yongsan-gu, Seoul, rebounded after three weeks, and buying interest shifted toward mid- to lower-priced complexes in northern Seoul, driving the pace of growth in Seoul apartment sale prices higher for a second consecutive week. By contrast, Gangnam-gu and Seocho-gu, where the burden of property holding taxes and capital gains taxes is increasing, extended their declines to a tenth consecutive week, along with Songpa-gu. Among Seoul's 25 districts, only the three Gangnam districts saw prices fall.

According to the weekly apartment price trend data for the second week of October (as of October 12), released by the Korea Real Estate Board on October 15, apartment sale prices in Seoul rose 0.16% from a week earlier. They have risen for 88 consecutive weeks since the first week of February last year. After slowing for five consecutive weeks, from 0.22% in the fifth week of August to 0.09% in the fourth week of September, the pace of growth rebounded to 0.12% the previous week and accelerated for a second consecutive week.

Weakness in the Gangnam area has continued for more than two months since the government announced a tax reform plan in August that reduces the long-term holding deduction rate for non-resident owners of a single home and owners of high-priced homes, increasing their tax burden. Gangnam-gu (-0.34% to -0.35%) fell for a tenth consecutive week, mainly in large apartment complexes in Apgujeong-dong and Yeoksam-dong, while Seocho-gu (-0.27% to -0.27%) also fell for a tenth consecutive week, mainly in Banpo-dong and Jamwon-dong. Songpa-gu (-0.19% to -0.21%) continued to decline for a sixth consecutive week.

At the end of last month, prices also turned downward in Yongsan-gu, spreading the correction along the Han River, but they rebounded this week. Yongsan-gu (-0.01% to 0.03%), which had declined for two consecutive weeks, returned to growth after three weeks. Mapo-gu (0.22% to 0.26%), Seongdong-gu (0.09% to 0.12%), Dongjak-gu (0.02% to 0.09%), and Gangdong-gu (0.13% to 0.14%) also all saw faster growth. Of Seoul's 25 districts, only three saw home prices fall: Gangnam-gu, Seocho-gu, and Songpa-gu.

While areas with concentrations of high-priced homes remain constrained by loan limits and tax pressures, actual homebuyers have been moving into mid- to lower-priced complexes, where financing is relatively easier, driving the overall rise in Seoul. The average increase across the 14 districts in northern Seoul was 0.31%, far above the 0.04% average across the 11 districts in southern Seoul.

Jungnang-gu (0.21% to 0.42%) saw growth double from the previous week, with prices rising mainly in small- and medium-sized complexes in Sinnae-dong and Sangbong-dong. It was followed by Seongbuk-gu (0.30% to 0.41%), Seodaemun-gu (0.36% to 0.40%), Dobong-gu (0.32% to 0.39%), and Nowon-gu (0.31% to 0.37%). In the southwestern part of Seoul, Geumcheon-gu (0.34% to 0.36%), Guro-gu (0.28% to 0.34%), and Gwanak-gu (0.33% to 0.34%) all recorded increases in the 0.3% range.

The Korea Real Estate Board said, "Although some complexes saw below-market listings and transactions at lower prices, sale prices rose mainly in popular large complexes, small- and medium-sized units, and complexes near subway stations, lifting sale prices across Seoul overall."

In Gyeonggi Province, the rate of increase accelerated from 0.18% the previous week to 0.26% this week, rising more sharply than in Seoul. The price growth rate across the Seoul metropolitan area also increased from 0.14% the previous week to 0.20%.

In particular, prices in Bundang-gu, Seongnam (0.56% to 0.79%) rose mainly in major complexes in Imae-dong and Seohyeon-dong, bringing the weekly increase close to 0.8%. In Gunpo (0.27% to 0.72%), buying interest concentrated in large complexes in Sanbon-dong and Geumjeong-dong, sending the rate of increase to nearly 2.7 times the previous week's level.

In southern Gyeonggi, where prices are benefiting from expectations for the semiconductor industry's outlook and liquidity inflows related to Samsung Electronics' employee housing loans, the pace of growth also roughly doubled from the previous week. Dongtan-gu, Hwaseong (0.33% to 0.66%), which had taken a breather the previous week, saw its rate of increase double. Its cumulative gain since the district reorganization last February reached 20.14%.

Nearby Byeongjeom-gu (0.33% to 0.56%) and Manse-gu (0.04% to 0.27%) in Hwaseong, Suji-gu (0.18% to 0.34%) and Giheung-gu (0.35% to 0.52%) in Yongin, and Yeongtong-gu (0.62% to 0.69%) in Suwon also posted gains. Elsewhere, Jungwon-gu in Seongnam (0.17% to 0.55%), Uiwang (0.32% to 0.60%), Gwangmyeong (0.39% to 0.62%), Dongan-gu in Anyang (0.41% to 0.53%), and Wonmi-gu in Bucheon (0.32% to 0.52%) all saw faster growth.

By contrast, prices fell in older complexes in Icheon (-0.17% to -0.17%) and Yeoju (-0.04% to -0.08%).

Prices in Incheon rose slightly, from 0.02% to 0.03%. Non-metropolitan areas, which had remained flat at 0.00% for four consecutive weeks, rose 0.01%, supported by a rebound in Sejong City (-0.05% to 0.02%) and gains in North Jeolla Province (0.01% to 0.06%).

Apartment sale prices nationwide rose 0.10%, up 0.03 percentage points from 0.07% the previous week.

This year, the cumulative increase in apartment jeonse prices in Seoul reached 8.55%, exceeding the cumulative increase in sale prices (8.49%) for a second consecutive week.

In major districts in northern Seoul, including Seongbuk-gu (sale prices up 15.68%; jeonse prices up 14.52%) and Nowon-gu (sale prices up 12.27%; jeonse prices up 13.95%), both home prices and jeonse prices have risen by more than 12% so far this year.

Apartment jeonse prices nationwide rose 0.11%, with the pace of growth accelerating by 0.02 percentage points from 0.09% the previous week.

In Seoul (0.16% to 0.18%), prices fell in Seocho-gu (-0.21% to -0.19%) and Gangnam-gu (-0.02% to -0.12%), where the supply of units in large complexes moving in has had an impact. However, rental demand concentrated in large complexes near subway stations in areas including Seongbuk-gu (0.31% to 0.39%), Nowon-gu (0.30% to 0.38%), and Jungnang-gu (0.26% to 0.37%).

Jeonse prices also rose at a faster pace in Gyeonggi Province (0.14% to 0.19%) and across the Seoul metropolitan area (0.15% to 0.18%), while the pace of growth in Incheon eased slightly (0.15% to 0.14%).

In non-metropolitan areas (0.03% to 0.04%), prices in Sejong City (0.11% to 0.24%) rose sharply, mainly in relatively new complexes.

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