"Seoul Housing Prices Rose by 100 Million Won per Month"…Unusual Trends in Seoul Real Estate [Urgent Housing Price Check]

Gyeonghuigung Xi "Approaching Peak from 3 Years Ago... Residents Cheer"
Gangnam Led by Han River Apartments' Rise
"Jamsil Els Up About 300 Million Won in 3 Months"
Gangbuk Sees Slight Price Increase, Rising Transaction Volume

"The peak price of Gyeonghuigung Xi Complex 2 was 2.25 billion KRW three years ago. It dropped to 1.8 billion KRW last year. But it has been gradually rising and recently traded at around 2.1 billion KRW." (Representative of a real estate agency near Gyeonghuigung Xi, Jongno-gu, Seoul, on the 10th)

The exclusive area of 84㎡ apartment in Gyeonghuigung Xi, considered the 'leading apartment' in northern Seoul, was traded for 2.15 billion KRW on the 30th of last month (based on actual transaction prices from the Ministry of Land, Infrastructure and Transport). This is a 200 million KRW increase compared to January (1.95 billion KRW). Another real estate agent working near this complex said, "Although there are many jeonse (long-term lease) listings, the sales listings are quickly being sold out, causing prices to rise."

Near Seodaemun Station in Jongno-gu, Seoul, there is a real estate agency office displaying a price information board for the "Gyeonghuigung Xi" apartment.
Photo by Seungwook Park

Not only Gyeonghuigung Xi, but apartment prices are fluctuating throughout Seoul. According to the weekly apartment price trends from the Korea Real Estate Board, Seoul housing prices have risen for 11 consecutive weeks from the fourth week of March to last week. Areas such as Nowon, Dobong, and Gangbuk, which had lagged behind Gangnam, have also turned to an upward trend.

The number of apartment sales in Seoul in April, as compiled by the Korea Real Estate Board (4,840 cases), surpassed 4,000 for the first time since August last year (4,091 cases). This is the highest in 2 years and 8 months since August 2021 (5,054 cases). According to the Seoul Real Estate Information Plaza, apartment transaction volumes in Seoul have already exceeded 4,000 cases since March.

From the beginning of this month to the 11th, real estate agencies near large apartment complexes in Seoul visited by Asia Economy unanimously stated, "The real estate market is recovering compared to last year." This atmosphere contrasts with the skepticism about rising housing prices expressed by Minister of Land, Infrastructure and Transport Park Sang-woo and other experts.

Seongdong-gu shows the largest increase in figures: "Primarily selling off properties priced below the peak"

Weekly Apartment Price Increase Rates in Major Areas of Seoul.

Recently, among the 25 districts in Seoul, Seongdong-gu showed the largest price increase. According to the weekly apartment trends from the Korea Real Estate Board, apartment prices in Seongdong-gu have risen by 0.19% for three consecutive weeks. The exclusive area of 84㎡ in ‘Centras’, a major complex in Wangsimni New Town, was 1.78 billion KRW on the 11th of last month. This is a 190 million KRW increase compared to February (1.59 billion KRW).

The representative of a real estate agency in Wangsimni New Town said, "One unit was sold even during the holiday last week." He added, "As jeonse prices have risen a lot recently, the mentality of 'I might as well buy a house' is leading to sales." He explained, "Properties priced lower than the peak three years ago are being quickly sold."

The jeonse price for the exclusive area of 84㎡ in Centras was 1 billion KRW on the 25th of last month. Jeonse prices have steadily increased, recording 850 million KRW on November 23 last year and 880.5 million KRW on February 1 this year.

A real buyer who visited a nearby real estate agency to check listings said, "I read in the news that the base interest rate might be lowered soon and that the supply of new apartments will decrease. I don't think Seoul apartment prices will fall further." He added, "After much consideration, I decided to stop looking for jeonse and started looking for sales listings." He said, "The peak price of Centras three years ago was 1.93 billion KRW, and I want to buy before it rises further."

Gangnam: "Prices rose by 300 million KRW in three months"… ‘Smart single property’ in spotlight

Last week, apartment prices in Gangnam areas such as Songpa-gu and Seocho-gu also rose by 0.14% compared to the previous week. The main drivers of the price increase were apartments along the Han River. Representative complexes include Raemian One Bailey, Apgujeong Hyundai Apartments, and Jamsil Els. The premium for Han River views caused prices to rise more than in other Gangnam areas. Nearby real estate agencies hinted that actual residents looking for better living conditions are buying despite the high premium.

The actual transaction price of the exclusive area of 84㎡ in ‘Jamsil Els’, located along the Han River in Jamsil-dong, Songpa-gu, was 2.47 billion KRW on the 11th of last month. This is a 250 million KRW increase compared to February (2.22 billion KRW). The increase was much larger than the 30 million KRW rise in ‘Helio City’ (exclusive area 84㎡) in Songpa-gu during the same period.

The representative of a nearby real estate agency said, "Gangnam is gaining great popularity mainly for apartments along the Han River. Currently, the jeonse rate is about 50%, so even gap investments are difficult to profit from, and due to many regulations, sales are mostly for actual residence purposes these days."

A resident of Jamsil Els met at the real estate agency said, "Looking around, many people buy a ‘smart single property’ in Gangnam and plan to live there for about 10 years to enjoy both capital gains and capital gains tax reductions."

Gangbuk: "Sales demand is recovering but prices are still low"

A view of Donam Hansin Hanjin Apartment area on Seongbuk-ro, Seongbuk-gu.

The Gangbuk area is also catching the upward trend, but the level is still minimal compared to Gangnam. The representative of a real estate agency in Donam-dong, Seongbuk-gu said, "There are many affordable complexes here compared to other Seoul areas, so recent purchase inquiries and transactions have increased." He added, "As jeonse prices have risen recently, jeonse asking prices in this area have also increased, pushing demand toward sales. Whether housing prices will rise remains to be seen."

The ‘Hanjin·Hanshin Apartments (exclusive 84㎡)’ in Donam-dong, Seongbuk-gu, were traded for 833 million KRW on the 11th of last month. This is a slight decrease compared to January (850 million KRW). Another real estate agent explained, "Housing prices here can gain momentum only after Gangnam's price rise becomes full-fledged. The asking price for Hanshin Apartments is stable between 770 million and 830 million KRW."

Although the market atmosphere is changing across Seoul, experts advise a conservative approach. They predict that this may be a temporary rebound rather than a sustained upward trend. They agree that transaction volumes are still not high compared to the past, so it is not certain that Seoul housing prices have fully recovered. There remains a significant possibility that prices may temporarily rebound and then decline again.