Real Estate 114, Apartment Price Trends in the Seoul Metropolitan Area for the First Week of March
[Asia Economy Reporter Kim Hyemin] Following the 2·4 supply measures, the announcement of Gwangmyeong-Siheung as a new housing site has led to a continued wait-and-see stance in the metropolitan area apartment market. In particular, the wait-and-see mood is expanding even in Nowon, Dobong, and Gangbuk (Nodonggang), which had previously driven price increases. However, if the supply measures face setbacks due to growing speculation allegations within the Korea Land and Housing Corporation (LH) regarding new towns, market prices may also fluctuate.
According to Real Estate 114 on the 6th, the apartment sale prices in Seoul for the first week of March rose by 0.13% compared to the previous week, narrowing from last week's increase of 0.14%. General apartments increased by 0.13%, and reconstruction apartments rose by 0.15%. This marks the third consecutive week of a reduced upward trend since the supply measures were announced last month.
In Seoul, the upward trend continues in outer areas and regions with expectations for reconstruction projects. By region, the increases were as follows: ▲Dobong (0.29%) ▲Seodaemun (0.28%) ▲Nowon (0.27%) ▲Dongjak (0.24%) ▲Songpa (0.19%) ▲Dongdaemun (0.18%) ▲Seocho (0.18%) ▲Guro (0.16%). Real Estate 114 explained that Dobong-gu's rise continued due to scarce transactions and limited available inventory. Guro-gu's increase was influenced by development expectations following the designation of the Gwangmyeong-Siheung new town.
New towns rose by 0.13% compared to the previous week. The order was ▲Pyeongchon (0.29%) ▲Wirye (0.22%) ▲Dongtan (0.2%) ▲Paju Unjeong (0.18%). Wirye's apartment prices continue to rise due to expectations from the proposed Wirye Line tram. For example, the Wirye Lotte Castle in Hagam-dong increased by about 20 million KRW within a week.
Gyeonggi and Incheon rose by 0.15% compared to the previous week. By region, the increases were ▲Uiwang (0.25%) ▲Uijeongbu (0.21%) ▲Incheon (0.2%) ▲Anyang (0.2%).
The jeonse (lease) market saw a slowdown in price increases across Seoul, new towns, and Gyeonggi-Incheon as inventory depletion progressed slowly in some complexes. Seoul rose by 0.12% compared to the previous week, Gyeonggi-Incheon by 0.09%, and new towns by 0.05%.
However, in Seoul's Guro-gu, jeonse prices rose by as much as 0.31% compared to the previous week, centered on complexes such as Woosung 1st in Sindorim-dong, Gyeongnam Honorsville in Oryu-dong, and Hyundai Parkville in Guro-dong. Gwanak-gu also saw a 0.27% increase as prices rose around large complexes. Conversely, Gangdong-gu turned downward with a 0.06% drop compared to the previous week as large complexes like Godeok Xi began move-ins starting February.
Lim Byungcheol, Senior Researcher at Real Estate 114, explained, "Although the outer areas of Seoul, which have driven price increases, are showing a cautious stance between sellers and buyers, inquiries for mid-to-low priced apartments remain steady, and owners are maintaining asking prices, so the upward trend continues."
Senior Researcher Lim added, "While housing prices have somewhat stabilized due to continuous supply signals such as the designation of the Gwangmyeong-Siheung new town, speculation allegations within LH regarding new towns could potentially disrupt other supply projects. The spring moving season in March, when housing demand moves, is expected to be a turning point for market prices."
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