Seoul Apartment Prices Halt Rise, Remain Flat for 2 Consecutive Weeks... Gangnam and Yongsan Districts Continue Upward Trend

View of apartments from Lotte World Tower Seoul Sky in Songpa-gu, Seoul. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Ryu Tae-min] Seoul apartment prices stopped rising and remained flat for two consecutive weeks. In the Gangnam area, where expectations for deregulation such as reconstruction are high, and Yongsan-gu, which has attracted attention due to the relocation of the presidential office, the upward trend continued. On the other hand, nearly half of the 25 autonomous districts recorded declines, with 12 districts falling, showing a slight downward trend for Seoul as a whole.

According to the weekly apartment price trend for the third week of May announced by the Korea Real Estate Agency on the 19th, as of the 16th, the apartment price change rate in Seoul was 0.00%, showing no change. This marks two consecutive weeks of flat prices following the previous week (0.00%).

In Seoul, among the 25 autonomous districts, 12 districts recorded declines, and 8 districts remained flat. Seocho-gu, which had the largest increase among the districts (0.04%→0.07%), saw a significant expansion in the increase due to expectations of deregulation. Gangnam-gu (0.02%→0.03%) and Yongsan-gu (0.04%→0.05%) saw slight increases mainly in ultra-high-end complexes priced over 2 billion KRW. Conversely, major northern districts such as Nowon (-0.04%), Seodaemun (-0.03%), and Mapo-gu (-0.02%) generally continued as buyer-favored markets and declined.

Incheon (-0.04%→-0.05%) saw a slight expansion in the decline. Yeonsu-gu (-0.16%) showed a decline mainly in mid- to low-priced areas such as Okryeon and Cheonghak-dong, Seo-gu (-0.07%) mainly in areas like Geomdan New Town, and Bupyeong-gu (-0.04%) mainly in older complexes in Bugae and Samsan-dong, with trading sentiment shrinking and showing a wait-and-see or downward trend.

Gyeonggi-do (-0.03%→-0.02%) saw a decrease in the rate of decline. Icheon-si (0.23%) rose mainly in Galsan and Jeungpo-dong, which have demand for proximity to workplaces, and first-generation new towns such as Ilsandong-gu in Goyang (0.08%), Bundang-gu in Seongnam (0.04%), and Bucheon-si (0.03%) rose due to expectations of deregulation. On the other hand, Siheung (-0.14%) and Uiwang-si (-0.08%) declined due to fatigue from last year's rapid price increases, and Hwaseong-si (-0.08%) declined mainly in Dongtan New Town due to inventory accumulation.

Sejong saw apartment prices fall by 0.13%, an increase in the rate of decline compared to the previous week (-0.09%).

A real estate agency in a densely populated apartment complex in Seoul. Photo by Hyunmin Kim kimhyun81@

In the apartment jeonse (long-term lease) market, Seoul (0.00%→0.00%) maintained a flat trend for three consecutive weeks. The metropolitan area saw an expanded decline (-0.01%→-0.02%). In Seoul, some areas and complexes with high preference such as school districts and proximity to subway stations or mid- to low-priced demand showed an upward trend, but most other areas continued to decline or remain flat.

South of the Han River, Seocho (0.02%) and Gangnam-gu (0.02%) turned to an upward trend mainly in complexes with demand from certain school districts. Songpa-gu (0.00%) showed mixed upward and downward transactions and turned flat.

North of the Han River, Eunpyeong-gu (-0.05%) continued to decline mainly in areas like Eungam and Susaek-dong due to the influence of new supply, Jongno-gu (-0.03%) mainly in Muak-dong complexes, and Seongbuk-gu (-0.02%) mainly in Gireum and Jongam-dong.

In other metropolitan areas, Incheon recorded -0.08%, a larger decline than the previous week (-0.03%). Bupyeong-gu (0.03%) rose mainly in large complexes in Bugae and Sipjeong-dong. Yeonsu-gu (-0.29%) declined mainly in old complexes in Okryeon and Dongchun-dong, Seo-gu (-0.15%) mainly in Sinhyeon and Wondang-dong, and Jung-gu (-0.07%) mainly in mid- to newly built complexes in Jungsan and Unseo-dong, expanding the overall decline in Incheon.

Gyeonggi-do declined by -0.02%, a larger decline than the previous week (-0.01%). Icheon-si (0.20%) and Pyeongtaek-si (0.18%) saw jeonse prices rise due to demand from nearby industrial complexes and related companies and rising sale prices. Areas affected by new supply such as Yangju-si (-0.32%) and Jangan-gu in Suwon (-0.25%) saw an expanded decline.

Sejong's jeonse prices fell by 0.16% last week, significantly reducing the rate of decline compared to the previous week (-0.28%).