Seoul Housing: Increasing Number of Areas with Rising Sale Prices and Larger Price Gains

August 'KB Housing Market Review'
Jeonse Prices: Expanded Increase in the Seoul Metropolitan Area, Rising Trend Possible in Non-Metropolitan Areas

When crossing the Banpo Bridge in Seoul, you can see new apartments, old apartments, and apartments under construction all at once in the Sinbanpo area. The new apartments on the left are Acro Riverview Sinbanpo, the low old apartments on the right are Sinbanpo 2nd Complex, and the apartments under construction in the back are the Maple Xi construction site. Photo by Younghan Heo younghan@

National housing sale prices have risen for two consecutive months since July, while regional polarization continued. According to the 'KB Housing Market Review' released on the 15th by KB Financial Group Management Research Institute, the nationwide housing sale price in August increased by 0.11% compared to the previous month. The Seoul Metropolitan Area saw an expanded rate of increase, whereas non-metropolitan areas continued to experience a decline.

In the Seoul Metropolitan Area, Seoul (0.52%) still recorded the highest increase, with some areas in Gyeonggi Province such as Seongnam (1.33%) and Gwacheon (1.39%) showing high growth rates. Meanwhile, Incheon (0.06%) maintained an upward trend, but the increase was not significant. The decline continued in non-metropolitan areas including Busan (-0.17%) and Daegu (-0.08%).

In Seoul, the rise in housing sale prices that began in some areas quickly spread to other districts. Among the 25 districts, the number of districts with rising sale prices for three consecutive months increased from 2 in April to 17 in August.

The Seoul Housing Sale Price Outlook Index for August was 124.1, down 3.1 points from the previous month. In July, it was 127.2, which was an increase of 13.4 points from the previous month. The upward trend of the sale price outlook index is somewhat slowing, indicating that the rate of increase in housing sale prices is expected to moderate.

Regarding housing jeonse (long-term lease) prices, the Seoul Metropolitan Area saw an expanded rate of increase, while the decline in non-metropolitan areas slowed. Nationwide housing jeonse prices in August rose by 0.19% compared to the previous month, marking 12 consecutive months of increase since September last year. In the Seoul Metropolitan Area, Seoul (0.55%) had the highest increase, with Gyeonggi Province (0.29%) and Incheon (0.41%) also showing expanded growth.

Among the five metropolitan cities in non-metropolitan areas, Gwangju (0.19%) and Ulsan (0.17%) experienced increases, and Daegu's decline significantly narrowed (July -0.48% → August -0.13%). Over the past year, the regional jeonse price increase rates were 1.39% nationwide, 3.03% in the Seoul Metropolitan Area, -0.67% in the five metropolitan cities, and 0.07% in other provinces.

The report explained, "Due to supply shortages relative to demand, the jeonse supply-demand index has continued to rise since the end of last year," adding, "While Seoul's upward trend has slowed due to increased sale demand, Gyeonggi Province and non-metropolitan areas have maintained their upward momentum." It further stated, "Regarding the jeonse price outlook index, the proportion of 'rising outlook' has slightly decreased recently in Seoul and other parts of the Seoul Metropolitan Area, but the five metropolitan cities and other provinces have shifted to a 'rising outlook,' suggesting the possibility of jeonse price increases expanding to non-metropolitan areas."