September Nationwide Housing Prices Rise for 3 Consecutive Months... Jeonse Prices Also Show Increased Growth Rate

Nationwide housing sale prices have risen for three consecutive months. Seoul has maintained an upward trend for four months, and the provinces have also increased their rate of growth.

View of downtown apartments from Namsan, Seoul / Photo by Yonhap News

On the 16th, the Korea Real Estate Board announced that in September this year, the comprehensive housing sale price index (including apartments, row houses, and detached houses) rose by 0.25%, expanding from the previous month’s increase of 0.16%. Nationwide housing prices have been narrowing their decline since January (-1.49%) and have continued an upward trend since turning positive in July.

By region, the rate of increase expanded in Seoul from 0.29% to 0.32%, in the metropolitan area from 0.30% to 0.42%, and in the provinces from 0.02% to 0.10%. The Real Estate Board stated, "In the metropolitan area, the overall increase expanded as expectations for price rises were maintained mainly in areas with favorable living conditions such as new towns and complexes with development prospects."

Within Seoul’s autonomous districts, Songpa-gu (0.70%), Seongdong-gu (0.60%), and Dongdaemun-gu (0.55%) showed strong performance centered on preferred complexes, while Yongsan-gu (0.41%) rose mainly around Ichon and Hannam-dong. Yeongdeungpo-gu (0.49%) was driven up by development prospects in Yeouido and Singil-dong.

In Gyeonggi Province (0.54%), Hanam-si (1.49%) and Hwaseong-si (1.34%) saw increases, while Dongducheon-si (-0.26%) and Icheon-si (-0.12%) experienced declines. In Incheon (0.19%), Jung-gu rose by 0.97%, influenced by the perception that Haneul New Town is relatively affordable. Yeonsu-gu (0.50%) increased mainly in Songdo New Town, and Seo-gu (0.48%) rose around large complexes such as Cheongna New Town.

The provinces have risen for two consecutive months following a rebound in August. Among the five major metropolitan cities, only Busan (-0.08%) declined. Sejong rose by 0.38%.

Last month, the nationwide comprehensive housing jeonse (long-term lease) price rose by 0.32%, expanding from the previous month’s 0.15%. Seoul and the metropolitan area rose by 0.45% and 0.62%, respectively. The provinces turned positive from -0.03% to 0.04%. The Real Estate Board explained, "In Seoul, Gyeonggi, and Incheon, the overall increase in the metropolitan area expanded due to a shortage of listings and steady tenant inquiries, mainly in complexes with favorable living conditions."

In Seoul, the northern districts saw the highest increases in Seongdong-gu (1.11%), Dongdaemun-gu (0.80%), and Yongsan-gu (0.57%). In the southern districts, Songpa-gu rose by 0.74%, with Gangdong-gu (0.63%) and Yangcheon-gu (0.58%) also showing strength. Jeonse prices in Gyeonggi and Incheon rose by 0.77% and 0.45%, respectively. In the provinces, Daegu (-0.03%) declined due to the impact of new apartment supply, but Jeonbuk (0.05%) rose due to demand from newlyweds.

The nationwide monthly rent price in September rose by 0.09%. In the metropolitan area (0.17%), Seoul showed a change from 0.08% to 0.10%, Gyeonggi from 0.11% to 0.24%, and Incheon from 0.06% to 0.08%. The provinces turned positive from -0.02% to 0.01%.