Driven by Gangnam Reconstruction, Boosted by Sejong Election Pledges... Gwacheon Up 5.5% Already This Year

Provincial Regions Continue Downward Trend for a Year

Amid a continued rise in apartment prices in Seoul, which have increased for 16 consecutive weeks?driven mainly by reconstruction complexes?Sejong and Gwacheon are also showing strength due to policy expectations and the advancement of redevelopment projects.

According to the "Weekly Apartment Price Trends for the Third Week of May (as of the 19th)" released by the Korea Real Estate Board on May 22, apartment sale prices in Seoul rose by 0.13% compared to the previous week, marking the 16th consecutive week of increases.

Among the districts, those with active reconstruction projects?Seocho-gu (0.23%→0.32%), Songpa-gu (0.22%→0.30%), Gangnam-gu (0.19%→0.26%), and Yangcheon-gu (0.13%→0.22%)?led the expansion in the rate of increase. Major reconstruction complexes in Banpo and Jamwon-dong, Jamsil and Sincheon-dong, and Apgujeong and Daechi-dong were analyzed to have driven the price increases.

The Korea Real Estate Board stated, "In Seoul, both asking prices and actual transaction prices are rising, especially in preferred complexes such as those undergoing reconstruction," adding, "However, in some areas, buyers are still taking a wait-and-see approach."

Driven by Gangnam Reconstruction, Boosted by Sejong Election Pledges... Gwacheon Up 5.5% Already This Year

Sejong City recorded a 0.30% increase this week, marking its sixth consecutive week of gains and the highest rate of increase among the 17 major cities and provinces nationwide. Gwacheon City rose by 0.23%, bringing its cumulative increase for the year to 5.53%, the highest in the country. In terms of jeonse prices, Gwacheon also led with a 0.34% rise this week and a cumulative increase of 3.83% for the year, ranking first nationwide.

In Sejong, pledges related to the administrative capital are stimulating demand, while in Gwacheon, expectations for redevelopment projects are driving buying activity. In Sejong, demand for apartment purchases increased mainly in preferred complexes in Gowon-dong and Sodam-dong, while in Gwacheon, apartment prices rose primarily in Byeoryang-dong and Wonmun-dong, where redevelopment projects are underway.

In contrast, apartment prices in provincial regions fell by 0.04% compared to the previous week, continuing a year-long downward trend. The polarization between the Seoul metropolitan area and provincial regions is becoming more pronounced.

This week, nationwide apartment sale and jeonse prices remained flat (0.00%). By city and province, Jeonbuk (0.02%) and Ulsan (0.01%) saw increases in apartment prices, while Jeonnam (-0.11%), Daegu (-0.10%), Daejeon (-0.07%), Gwangju (-0.07%), Gyeongbuk (-0.06%), and Busan (-0.04%) experienced declines. Incheon (0.00%) remained unchanged.

Jeonse prices in Seoul saw their rate of increase expand (0.03%→0.04%), while the rate of decline in provincial regions deepened (-0.01%→-0.02%). By city and province, Busan (0.04%), Ulsan (0.04%), and Chungbuk (0.01%) recorded increases. Gyeonggi (0.00%) and Jeonbuk (0.00%) remained flat, while Daejeon (-0.15%), Gangwon (-0.08%), Jeonnam (-0.07%), Gyeongbuk (-0.05%), and Chungnam (-0.05%) saw decreases.