Korea Real Estate Board Reports Weekly Apartment Price Trends for the Second Week of June
This week, apartment prices in Seoul recorded their largest increase in nine months. The upward trend that began in the Gangnam area is gradually spreading to Gangdong and outlying regions.
According to the "Weekly Apartment Price Trends for the Second Week of June (as of the 9th)" released by the Korea Real Estate Board on June 12, apartment sale prices in Seoul rose by 0.26% compared to the previous week. This is the highest weekly increase since the fourth week of August last year (0.26%).
The rise in Seoul apartment prices has accelerated noticeably since May. Until early May, the weekly growth rate remained below 0.1%, but it increased steadily to 0.10% in the second week, 0.13% in the third week, and 0.16% in the fourth week. In the first week of June, it reached 0.19%, and this week, it expanded further to 0.26%.
This week, the district with the highest increase in Seoul was Songpa-gu (0.71%), followed by Gangnam-gu (0.51%) and Gangdong-gu (0.50%). Both Songpa and Gangnam recorded their highest growth rates since the third week of March, while Gangdong-gu saw its largest increase in six years and nine months since the second week of September 2018 (0.8%).
Seocho-gu also rose by 0.45%, joining the upward trend in the Gangnam area, and Seongdong-gu (0.47%) and Yongsan-gu (0.43%) also saw their increases widen compared to the previous week. The Korea Real Estate Board explained, "The overall upward trend in Seoul continues, with asking prices rising and transactions being concluded at higher prices, especially in preferred complexes such as those undergoing reconstruction."
In particular, the upward trend in Gangdong-gu was pronounced among newly built apartments less than ten years old. Even in areas such as Jongno (0.17%), Seongbuk (0.13%), Nowon (0.07%), and Guro (0.06%), which had previously seen only modest increases, upward momentum is now being observed. The price increases that began in Gangnam are gradually spreading to neighboring regions.
This phenomenon is interpreted as a "spatial diffusion model," which is repeatedly observed in the real estate market. According to a report by the Korea Research Institute for Human Settlements, in the southern part of the Seoul metropolitan area, there are three distinct routes through which price increases spread: ▲Gangnam 3 districts→Pangyo·Bundang→Yongin Suji→Yongin Giheung; ▲Gangnam 3 districts→Gwacheon·Pangyo→Pyeongchon·Indeokwon→Sanbon; ▲Gangnam 3 districts→Mokdong·Gwacheon→Gwangmyeong·Songdo→Siheung. The institute noted, "During periods of rising housing prices, market participants share a clear understanding of the spatial diffusion routes of apartment price changes in the metropolitan area, making them highly sensitive to price changes in higher-tier districts."
Park Wongap, Senior Expert at KB Kookmin Bank, stated, "The 'ripple effect,' where the upward trend that begins in Gangnam spreads to adjacent areas, is repeatedly observed in the metropolitan market," and added, "In the case of Gwacheon, it serves as an 'interchange' that transmits the upward trend to other regions, as it sits at the intersection of several diffusion routes."
This week, overall apartment sale prices in the Seoul metropolitan area rose by 0.09%, with the rate of increase expanding by 0.04 percentage points compared to the previous week. Seoul led the upward trend with a 0.26% increase, while Gyeonggi Province rose by 0.02%, and Incheon remained flat at 0.00%.
In the provinces, prices fell by 0.03%, maintaining a slight downward trend compared to the previous week. The five major metropolitan cities showed no change at 0.0%, and the eight provinces declined by 0.02%, similar to the previous week (-0.03%). In contrast, Sejong rose by 0.18% and Gwacheon by 0.35%, continuing their strong performance.
Jeonse (long-term lease) prices are also rising gradually, centered on Seoul. Seoul saw a 0.08% increase, up from 0.06% the previous week, with steady demand in preferred areas such as those near subway stations, large apartment complexes, and top school districts. However, some assessments note that the increase is still not strongly felt in the actual market.
Specifically, Songpa (0.18%), Gangdong (0.17%), and Gwangjin (0.16%) recorded the largest increases, and Seocho-gu, which had recently seen adjustments due to the move-in of new large complexes, also turned upward with a 0.01% increase. The metropolitan area as a whole rose by 0.03%, while the provinces fell by 0.02%, showing a pattern similar to the sale market.
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