Seoul Apartment Prices Stable for 2 Consecutive Weeks... Gangnam and Yongsan Districts Continue Upward Trend

Apartment buildings in the Seoul area (Photo by Yonhap News)

[Asia Economy Reporter Ryu Taemin] Seoul apartment prices have stopped declining and maintained a steady trend for two consecutive weeks. The upward trend in the Gangnam area, filled with expectations for deregulation such as reconstruction, and Yongsan-gu, which has attracted attention due to the relocation of the presidential office, also seems to continue.

According to the weekly apartment price trend for the second week of April announced by the Korea Real Estate Board on the 14th, as of the 11th, the rate of change in apartment sale prices in Seoul recorded 0.00%, showing no change. This maintained a steady trend following the previous week (-0.00%).

In Seoul, 11 out of 25 autonomous districts recorded declines. The district with the largest decline was Dobong-gu (-0.04% → -0.03%), where the decline slightly decreased. The Gangnam 3 districts, which had turned to an upward trend the previous week, saw an increase in the rise. Gangnam-gu (0.04%) rose mainly due to reconstruction in Gaepo and Irwon-dong, where deregulation expectations exist, and Seocho-gu (0.02%) continued to rise mainly in Banpo-dong with increased buying demand. On the other hand, Songpa-gu recorded -0.01%, turning from an increase (0.01%) the previous week to a decline.

Incheon (0.00% → -0.01%) turned to a decline again. Jung-gu (0.01%) rose mainly in Songwol and Sinheung-dong older complexes. Yeonsu-gu (0.00%) shifted from decline to steady due to increased buying demand mainly in popular complexes in Songdo and Yeonsu-dong. Dong-gu (-0.02%) declined mainly in Manseok-dong, and Bupyeong-gu (-0.04%) declined due to inventory accumulation in Sangok and Bupyeong-dong.

Gyeonggi-do (-0.03% → -0.01%) saw a decrease in the rate of decline. Pyeongtaek-si (0.22%) rose mainly in older complexes in Dokgok and Jisan-dong, where expectations for deregulation of redevelopment projects exist. On the other hand, Hwaseong-si (-0.14%) declined mainly in major complexes in Seokwoo and Sancheok-dong, Suwon Yeongtong-gu (-0.11%) declined mainly in newly built or semi-new complexes in Yeongtong and Mangpo-dong, and Uiwang-si (-0.04%) saw an expanded decline due to inventory accumulation and weakened transaction sentiment.

Sejong saw apartment prices fall by 0.20%, a larger decline compared to the previous week (-0.08%).

Scenes of real estate agencies around Seoul (Photo by Yonhap News)

The apartment jeonse (long-term lease) market last week showed the same decline rates as the previous week in the metropolitan area (-0.03%) and Seoul (-0.02%). In Seoul, due to burdens such as jeonse loan costs, most areas showed steady or declining trends, with inventory accumulation mainly in relatively high-priced new and high-end complexes and less preferred older complexes, continuing the downward trend.

South of the Han River, Gangnam-gu (-0.02%) and Seocho-gu (-0.03%) continued to decline, mainly due to transactions of urgent sale properties. Songpa-gu (-0.01%) continued to decline due to inventory accumulation mainly in major complexes in Munjeong and Jangji-dong, while Gangdong-gu (0.00%) showed a mixed trend of rises and falls, maintaining a steady state.

In other metropolitan areas, Incheon recorded -0.07%, a smaller decline than the previous week (-0.08%). Yeonsu-gu (-0.29%) declined mainly in Songdo-dong, and Seo-gu (-0.07%) declined mainly in Gyeongseo and Wanggil-dong. Dong-gu (0.02%) rose mainly in Songnim-dong, and Michuhol-gu (0.02%) rose mainly in relatively mid-to-low-priced complexes in Yonghyeon and Hakik-dong.

Gyeonggi-do declined by -0.02%, a smaller decline than the previous week (-0.03%). Pyeongtaek-si (0.24%) continued its upward trend mainly in Godeok-myeon and Gajae-dong, which have demand for proximity to workplaces. Hwaseong-si (-0.17%) saw weakened transaction sentiment mainly in major complexes in Dongtan New Town, Uiwang-si (-0.13%) declined mainly in major complexes in Naeson and Hagui-dong affected by inventory accumulation, and Suwon Yeongtong-gu (-0.12%) declined mainly in Mangpo and Woncheon-dong, affected by move-in volumes.

Sejong continued its downward trend with jeonse prices falling 0.19% last week, following the previous week's decline of -0.20%.