Korea Real Estate Board April 4th Week Apartment Price Trends
Seoul 0.08% Increase Rate... Upward Trend Maintained
Pre-Regulation Buying Rush in Apgujeong, Mokdong, etc.
Expectations of Regulation Easing on Reconstruction Stimulate Housing Prices
Jeonse Prices Stable... Seoul Increase Rate Shrinks
[Asia Economy Reporter Moon Jiwon] Seoul apartment prices rose by 0.08% this week, maintaining the same rate of increase as last week. Although the rate of increase did not expand, buying demand for reconstruction complexes has remained strong since the inauguration of Seoul Mayor Oh Se-hoon. In particular, areas such as Mokdong and Apgujeong saw concentrated buying demand before the designation of land transaction permission zones, leading to rising apartment prices.
According to the weekly apartment price trend for the fourth week of April announced by the Korea Real Estate Board on the 29th, as of the 26th, Seoul apartment prices rose by 0.08% compared to the previous week. After recording a 0.05% increase in the first week of this month, the rate of increase grew to 0.07% in the second week and 0.08% in the third week, before slightly slowing down this week. However, it is analyzed that the upward trend is more distinct compared to early this month before the Seoul mayoral by-election.
Gangnam-gu Apgujeong, Yeongdeungpo-gu Yeouido, Yangcheon-gu Mokdong, and Seongdong-gu Seongsu-dong saw an expansion in the rate of increase as buying demand surged before the enforcement of the land transaction permission zones designated on the 21st. The Real Estate Board explained, "New land transaction permission zones saw a rush of last-minute buying demand before the effective date (27th), which increased the rate of price rise."
Similar to last week, apartment prices rose significantly in areas with major reconstruction complexes in Seoul, such as Nowon-gu (0.16%), Songpa-gu (0.15%), Gangnam-gu (0.13%), Seocho-gu (0.13%), Yeongdeungpo-gu (0.10%), and Yangcheon-gu (0.10%).
Incheon maintained a high rate of increase with apartment prices rising 0.51%, similar to last week. Yeonsu-gu (0.74%) saw price increases mainly in Cheonghak, Yeonsu, and Dongchun-dong, where there is demand due to transportation benefits and mid-to-low price complexes.
In Gyeonggi-do, the apartment price increase rate slightly decreased from 0.32% last week to 0.31% this week. Siheung-si (1.02%) saw rises mainly in areas with transportation benefits or undervalued regions, and Anyang Dongan-gu (0.74%) saw increases centered on Gwanyang, Hogye, and Pyeongchon-dong, which have favorable residential conditions. Uiwang-si (0.74%), where expectations for transportation network expansion are high, also saw significant increases. However, Suji-gu in Yongin (0.00%) shifted to a stable trend as listings accumulated in complexes due to holding tax burdens.
Apartment complex under reconstruction viewed from the observation deck of Lotte World Tower in Songpa-gu, Seoul [Image source=Yonhap News]
The jeonse (long-term lease) market is showing signs of stabilization. Seoul apartment jeonse prices rose by 0.02% this week, narrowing the increase compared to last week (0.03%).
The Real Estate Board analyzed, "While prices are rising mainly in relatively low-priced complexes or those with favorable residential conditions, the seasonal off-season and delayed absorption of listings due to high asking prices have reduced the rate of increase."
North of the Han River, Nowon-gu (0.11%) saw significant jeonse price increases mainly in large established complexes in Sanggye-dong, but Mapo-gu (-0.01%) declined due to the impact of new housing supply, and Jongno-gu (-0.01%) shifted to a downward trend as asking prices dropped mainly in established complexes in Sungin-dong.
South of the Han River, Seocho (0.00%), Songpa (0.00%), and Gangdong-gu (0.00%) all shifted to a stable trend as some complexes saw jeonse price declines due to the seasonal off-season. Gangnam-gu (-0.01%) is declining due to accumulated listings and decreased jeonse demand, while Guro-gu (0.04%) and Gangseo-gu (0.03%) are maintaining an upward trend.
Incheon also saw a decrease in the jeonse price increase rate from 0.38% last week to 0.33%. Gyeonggi-do rose by 0.12%, the same as last week. Siheung-si (0.58%), where the price increase was significant, saw jeonse prices rise mainly in Mokgam, Eungye districts, and Baegot New Town, which have favorable residential conditions. Dongducheon-si (0.34%) and Pyeongtaek-si (0.30%) continued their upward trends, while Gwacheon-si (-0.18%) has been continuously declining since December last year.
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