Seoul Housing Prices Rose the Most in 5 Years and 10 Months This Week

Korea Real Estate Board Announces 'Weekly Apartment Price Trends for the Third Week of July'
Increase of 0.28%... Seoul Jeonse Prices Also Rise for 61 Consecutive Weeks

The Seoul apartment sales market is recovering, leading to a larger increase in prices. Seoul's jeonse prices have continued to rise for 61 consecutive weeks, although the rate of increase has slightly decreased.

According to the "Weekly Apartment Price Trends for the Third Week of July (as of the 15th)" released by the Korea Real Estate Board on the 18th, apartment sale prices in Seoul rose by 0.28% this week compared to the previous week. This increase is larger than last week's 0.24%. Notably, this is the largest increase in about 5 years and 10 months since the second week of September 2018 (0.45%).

The metropolitan area also saw an increase in the rate of rise from 0.12% in the second week of July to 0.13% in the third week. In contrast, the provinces experienced a larger decline, from -0.03% to -0.04%, resulting in a nationwide increase rate of 0.05%.

Seoul apartment sale prices have been rising for 16 consecutive weeks since a 0.01% increase in the fourth week of March, with the rate of increase gradually growing.

The Real Estate Board analyzed, "Listings are rapidly being exhausted and rising transactions are occurring mainly in Gangnam, Seocho, Songpa, and Gangdong districts," adding, "Some complexes are renewing record prices, and as the transaction atmosphere recovers, expectations for price increases in neighboring areas are also rising."

Looking at the weekly increase rates by district, Songpa-gu, where prices rose mainly in large-scale reconstruction complexes in Sincheon-dong and Jamsil-dong, recorded the highest increase at 0.62%. Seongdong-gu followed closely at 0.60%, showing an upward trend mainly in large complexes near Haengdang-dong and Eungbong-dong stations.

In the area south of the Han River, the so-called "Gangnam 4 districts"?Songpa-gu, Seocho-gu (0.47%), Gangdong-gu (0.39%), and Gangnam-gu (0.32%)?showed strong performance. In the northern part of the river, Seongdong-gu, along with Mapo-gu (0.38%), Yongsan-gu (0.30%), and Gwangjin-gu (0.38%), led the upward trend.

In Gyeonggi-do, price increases were driven by first-generation new town areas undergoing reconstruction such as Gwacheon-si (0.44%) and Bundang-gu in Seongnam (0.27%), as well as Yeongtong-gu in Suwon (0.26%).

Jeonse prices rose in the metropolitan area but fell in the provinces. However, the rate of increase in Seoul slightly decreased compared to the previous week. Nationwide apartment jeonse prices rose by 0.06% this week, up from 0.05% last week. The metropolitan area saw an increase from 0.13% to 0.14%, but Seoul's increase rate dropped from 0.20% to 0.18%. Seoul's jeonse prices have been rising for 61 consecutive weeks. The provinces maintained the same decline rate as the previous week at -0.02%.

By district, Yeongdeungpo-gu (0.34%), which rose mainly in older complexes in Yeouido and Yeongdeungpo-dong, along with Yangcheon-gu (0.26%), Seongdong-gu (0.26%), Seocho-gu (0.24%), and Nowon-gu (0.23%), showed relatively large increases. The Real Estate Board explained, "As rental demand continues steadily, rising transactions are occurring mainly in preferred complexes with good school districts and residential conditions," adding, "The shortage of listings is also ongoing, spreading the upward trend to nearby complexes."