June Seoul Metropolitan Area Housing Prices Rise Again by Over 1%... Monthly Rent Also Increases

Korea Real Estate Board June Nationwide Housing Price Trends
Capital Region Housing Sales 0.86%→1.04%
Jeonse and Monthly Rent Prices Also Rise Sharply

Apartment complexes in the Gangnam-gu area of Seoul [Image source=Yonhap News]

[Asia Economy Reporter Moon Jiwon] Last month, the housing sale price increase rate in Seoul and the metropolitan area rose back to the 1% range after four months. Since the announcement of the 2·4 measures, housing prices, which had somewhat stalled, are continuing to expand their rate of increase. Not only sales but also jeonse (long-term lease) and monthly rent prices in the metropolitan area are rising, raising concerns that the residential environment for ordinary citizens is becoming increasingly unstable.

According to the nationwide housing price trend survey for June released by the Korea Real Estate Board on the 15th, the comprehensive nationwide housing sale price (including apartments, detached houses, and row houses) rose by 0.79% over the past month (May 11 to June 14), expanding from the previous month’s increase of 0.70%. In the metropolitan area, the increase rate grew from 0.86% in May to 1.04% last month, marking a return to the 1% range after four months since February (1.17%).

In the metropolitan area, the increase rate grew in Seoul, Incheon, and Gyeonggi-do. In Seoul (0.49%), apartment prices rose significantly mainly in areas with expectations for redevelopment projects or perceived undervaluation. Districts leading the upward trend included Nowon-gu (1.02%), Seocho-gu (0.97%), Gangnam-gu (0.73%), Gangdong-gu (0.67%), and Songpa-gu (0.61%), where expectations for relaxed reconstruction regulations are high.

Gyeonggi-do (1.32%), where buying demand is surging due to the metropolitan area express railroad (GTX) benefits, is also seeing soaring sale prices centered on areas with good access to Seoul such as Anyang and Gunpo cities. Incheon (1.46%) saw increases mainly in Gyeyang-gu, which has transportation advantages or development expectations due to the promotion of the 3rd new town, as well as in Yeonsu and Bupyeong districts.

Nationwide housing jeonse prices also rose by 0.45%, expanding from 0.36% in the previous month. In Seoul (0.18%→0.36%), the increase rate doubled. This was particularly influenced by jeonse price hikes in areas with relocation demand due to redevelopment projects such as Banpo 1, 2, and 4 districts and Noryangjin New Town 6 district. Seocho-gu (1.63%) showed a shortage of listings mainly in Banpo, Seocho, and Bangbae-dong, causing jeonse prices to skyrocket, with similar situations in other areas. Jeonse prices nationwide, including the metropolitan area (0.36%→0.55%) and provinces (0.35%→0.37%), are also on the rise.

Nationwide monthly rent prices rose by 0.14%, also expanding from 0.12% in the previous month. This is due to increased demand for monthly rent as sale and jeonse prices surge. In Seoul (0.10%), monthly rent prices rose mainly in Seocho and Dongjak districts, while in Gyeonggi-do (0.18%), prices increased significantly in Namyangju, where there is waiting demand for the 3rd new town subscription, and in Pyeongtaek, which has high demand from industrial complex workers.