Even Seongbuk-gu, Seoul's Top District for Apartment Price Gains, Sees Transactions Plunge... Listings Up 59% in Three Months

Transactions plunge at all seven major complexes in Seongbuk-gu

High asking prices and rising rates deter buyers

A warning sign of falling home prices or a temporary pause?

"Transactions have slowed since September. As interest rates have risen, inquiries from buyers have declined, but asking prices have climbed too much, so deals are not going through." (A licensed real estate agent in Donam-dong, Seongbuk-gu, Seoul)

Seongbuk-gu, which has seen the steepest apartment price gains among Seoul's 25 districts this year, has recently experienced a sharp drop in transaction volume. The slowdown is believed to reflect the growing price burden on buyers after home prices surged in a short period, as well as rising mortgage rates. The number of apartments listed for sale across Seongbuk-gu has also increased by about 59% over the past three months. Some see this as an early sign of falling home prices, while others say it is merely a temporary pause to catch its breath.

A review by The Asia Business Daily of transaction records for seven major apartment complexes in Seongbuk-gu - Raemian Gileum Centerpiece in Gileum-dong, Raemian Jangwi First High in Jangwi-dong, Hanshin Hanjin in Donam-dong, Jeongneung Poonglim I'Park in Jeongneung-dong, Jongam SK in Jongam-dong, Wolgok Doosan We've in Hawolgok-dong, and Doosan in Seokgwan-dong - found that sales transactions at all of them had fallen sharply compared with the first half of the year.

Transactions at Hanshin Hanjin, which has 4,509 households, fell from 34 in April to 10 in September. Those at Doosan, with 1,998 households, dropped from 17 in March to four in September, while those at Raemian Jangwi First High, with 1,562 households, declined from 11 in February to three in September. Total apartment transactions in Seongbuk-gu stood at 178 in September, the lowest monthly figure in one year and nine months, since December 2024, when there were 131.

Seongbuk-gu has been Seoul's hottest area for homebuyers this year. According to statistics from the Korea Real Estate Board, apartment prices in the district rose 16.9% this year, the highest increase among Seoul's districts. The latest weekly gain was also 0.30%, more than four times Seoul's average of 0.07%. The area is believed to have attracted many buyers because it has relatively many mid- and lower-priced complexes and offers reasonably convenient access to the city center.

A licensed real estate agent in Seongbuk-gu said, "Many tenants who lived in Seongdong-gu and Mapo-gu signed purchase contracts this year. It seems many moved here because they could afford to buy in Seongbuk-gu by adding a little more in loans to the deposits they had in those neighborhoods."

Recently, however, listings have been piling up as transaction volumes have fallen. According to Asil, a real estate big data platform, the number of apartments listed for sale in Seongbuk-gu rose about 59% in three months, from 1,502 on August 5, two days after the government announced its tax reform plan, to 2,389 on November 5. Listings have increased in most of Seoul's districts, but Seongbuk-gu recorded the steepest rise.

Listings at the seven major complexes also increased by about 77% over the same period, from 232 to 411. Listings at Wolgok Doosan We've rose 175%, from 24 to 66, while those at Hanshin Hanjin doubled, from 54 to 108.

A decline in transaction volume and an increase in listings typically put downward pressure on home prices. However, some say the trend is unlikely to lead to a sustained price decline. In Seongbuk-gu, record-high transactions are still being reported at some mid- and lower-priced complexes despite the drop in transaction volume. A unit measuring 84 square meters exclusively at Jeongneung Poonglim I'Park sold for KRW 800 million on October 24, setting a new record high.

Du Seong-gyu, head of the Mokmin Institute for Economic Policy, said, "It appears that the market is taking a temporary breather as prices rise. Since there will be almost no new housing supply in Seoul through 2030, instability in home prices could continue."

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