[Asia Economy Reporter Yuri Kim] After the tax-saving urgent sale properties were exhausted, the rate of increase in Seoul apartment prices expanded compared to last week (0.01%). The rise in transactions of apartments priced over 900 million KRW, which are subject to loan regulations, appears to have influenced the increase in housing prices.
According to an analysis of the Ministry of Land, Infrastructure and Transport's actual transaction data by Real Estate 114, the number of apartment sales transactions in Seoul exceeding 900 million KRW in May was recorded at 690, an increase of over 100 transactions compared to 571 in April. Among these, transactions exceeding 1.5 billion KRW numbered 337, and considering the 30-day reporting period for actual transactions, there is a possibility that this will surpass the highest transaction volume of 380 in February this year. Of the apartments priced over 1.5 billion KRW, one-third, or 113 transactions, took place in Gangnam-gu. It is analyzed that in Gangnam-gu, which had led the price decline, most urgent sale properties have been resolved, leading to a price rebound.
According to Real Estate 114 on the 5th, the weekly change rate of Seoul apartment sale prices recorded 0.03%. Reconstruction apartments rose by 0.04%, expanding the increase compared to the previous week, while general apartments rose by 0.03%. With continued transactions of mid- to low-priced apartments, Gyeonggi and Incheon rose by 0.06%, and new towns increased by 0.02%.
In Seoul, the upward trend continued mainly in apartments priced below 900 million KRW, while Gangnam, where urgent sale properties were exhausted, turned to an increase. By region, the increases were in the order of Jung-gu (0.16%), Guro (0.11%), Jongno (0.09%), Seodaemun (0.08%), Gangdong (0.07%), and Nowon (0.06%). In Jung-gu, Namsan Town in Sindang-dong, which has remodeling issues, rose by 15 million KRW. In Guro, Samsung Raemian and Guro Doosan in Guro-dong, and Onsu Hillstate in Onsu-dong rose by 5 to 15 million KRW. In Jongno, the 2nd, 3rd, and 4th complexes of Gyehigung Morning in Naesu-dong rose by 10 to 50 million KRW. In Seodaemun, Doknipmun Geukdong in Hyeonhyeo-dong, DMC Raemian e-Pyeonhansesang in Bukgajwa-dong, and Hongjewon Hyundai in Hongje-dong rose by about 5 million KRW. In Gangdong, Godeok Gracium in Godeok-dong and Samik Green 2nd in Myeongil-dong rose by 5 to 10 million KRW. Gangnam (0.02%) saw increases of 5 to 25 million KRW in Gaepo-dong Jugong High-rise 6th Complex, Apgujeong-dong Shin Hyundai, and Daechi-dong Hanbo Mido Mansion 2nd Complex.
In new towns, the increases were in the order of Pyeongchon (0.04%), Dang (0.03%), Ilsan (0.02%), Dongtan (0.02%), and Gimpo Hangang (0.02%). In Gyeonggi and Incheon, inquiries are continuing mainly for large apartment complexes. By region, the increases were in Ansan (0.20%), Osan (0.13%), Namyangju (0.12%), Gwangmyeong (0.10%), Uiwang (0.08%), Incheon (0.07%), Goyang (0.07%), and Hwaseong (0.07%). On the other hand, Gwacheon (-0.13%) saw a downward adjustment of 10 million KRW for Raemian Sur 3rd Complex in Wonmun-dong due to the move-in effect of Gwacheon Prugio Summit.
The metropolitan area jeonse (lease) market rose by 0.05% in Seoul due to a shortage of listings, while Gyeonggi, Incheon, and new towns rose by 0.03% and 0.01%, respectively. In Seoul's jeonse market, demand flowed mainly into areas with proximity to workplaces, with increases in Gangdong (0.13%), Songpa (0.13%), Gwanak (0.12%), Jongno (0.11%), Jungnang (0.10%), Gangseo (0.08%), Gangnam (0.06%), and Guro (0.06%). In Gangdong, Samik Green 2nd and Shindong-a in Myeongil-dong rose by 5 to 15 million KRW. In Songpa, Lake Palace and Jamsil Els in Jamsil-dong, and Olympic Family Town in Munjeong-dong rose by 10 to 25 million KRW. In Gwanak, Gwanak Dream Town in Bongcheon-dong rose by 5 million KRW. In Jongno, the 3rd and 4th complexes of Gyehigung Morning in Naesu-dong and Brownstone Changsin in Changsin-dong rose by 5 to 50 million KRW. In Jungnang, Hanshin 1st in Junghwa-dong and Doosan Hwaseong in Sinnae-dong rose by 10 million KRW. In Gangnam, Shin Hyundai in Apgujeong-dong, Hanbo Mido Mansion 1st and 2nd Complexes in Daechi-dong, and Gangnam Hanyang Sujain in Jagok-dong rose by 10 to 25 million KRW.
In new towns, the increases were in the order of Gwanggyo (0.05%), Bundang (0.03%), Wirye (0.03%), Dongtan (0.02%), and Ilsan (0.01%). In Gyeonggi and Incheon, the increases were in Yongin (0.08%), Gwangmyeong (0.07%), Goyang (0.06%), Guri (0.06%), Uiwang (0.06%), Ansan (0.05%), and Anyang (0.05%). On the other hand, Gwacheon (-0.39%) continued to fall sharply following last week. With 1,671 households moving in since April, Raemian Sur in Wonmun-dong, where jeonse transactions have been sluggish, dropped by 10 million KRW.
With increased transactions in May, Seoul apartment prices rose for two consecutive weeks. Yeokyunghee, Senior Researcher at Real Estate 114, said, "It is too early to interpret this as a trend reversal since the urgent sale properties for tax saving in the Gangnam area, where high-priced apartments are concentrated, have been cleared and the price rise has not triggered a chasing buying spree." However, since demand is steadily flowing into relatively less loan-regulated mid- to low-priced apartments, it is expected that the upward trend will continue mainly in areas on the outskirts of Seoul and in the metropolitan area where prices have risen less."
The metropolitan area jeonse market is showing signs of a growing rate of increase. Although the average monthly move-in volume in Seoul in the first half of this year reaches about 4,000 households, there are not many listings available in the jeonse market. Additionally, with the historically lowest base interest rate, the conversion to monthly rent, and the expected decrease in jeonse supply, it is analyzed that the upward trend will continue mainly in areas with good residential environments such as proximity to workplaces and good school districts.
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