Seoul Apartment Prices Surge for 20th Consecutive Week
Largest Weekly Gain in Nearly 7 Years, Led by Seongdong and Gangnam Districts
Sejong's Growth Slows, Provincial Markets Continue to Decline
Apartment prices in Seoul have continued to rise for 20 consecutive weeks, and this week saw the largest increase in 6 years and 9 months. The upward trend in home prices, driven by reconstruction projects in the Gangnam area, has not been dampened by the re-designation of land transaction permit zones (toheoguyeok). Instead, it is spreading to neighboring districts such as Seongdong and Mapo.
According to the "Weekly Apartment Price Trends for the Third Week of June (as of June 16)" released by the Korea Real Estate Board on June 19, apartment sale prices in Seoul rose by 0.36% compared to the previous week. This is the highest weekly increase since the second week of September 2018 (0.45%).
The rate of increase in Seoul apartment prices remained at 0.08% for three consecutive weeks in April, but then began to rise gradually, reaching 0.13% in the third week of May and 0.16% in the fourth week (May 26). In June, the pace accelerated to 0.19% (June 2) and 0.26% (June 9). This week, the increase was even greater, marking the largest weekly gain since the Moon Jae-in administration.
Among Seoul's districts, Seongdong-gu recorded the highest weekly increase, rising by 0.76% compared to the previous week (0.47%), surpassing the three Gangnam districts. This is the largest increase in about 12 years and 2 months, since the fifth week of April 2013. The rise was mainly centered on popular complexes in Geumho and Hawangsimni-dong.
This was followed by Gangnam-gu (from 0.51% to 0.75%), Songpa-gu (from 0.71% to 0.70%), Gangdong-gu (from 0.5% to 0.69%), Mapo-gu (from 0.45% to 0.66%), and Seocho-gu (from 0.45% to 0.65%). For Gangnam-gu and Seocho-gu, this was the highest increase in 13 weeks since the third week of March, and for Mapo-gu, it was the highest increase since statistics have been recorded.
Yongsan-gu rose by 0.61%, mainly in Ichon and Itaewon-dong. This is the highest increase in 7 years and 4 months, since the third week of February 2018 (0.61%).
The Korea Real Estate Board stated, "The asking prices of sellers are rising, especially in complexes pursuing reconstruction and large-scale complexes, and there are increasing inquiries from buyers. As cases of transactions at higher prices are being observed, the overall upward trend in Seoul continues."
In Gyeonggi Province, Seongnam and Gwacheon led the upward trend. Bundang-gu in Seongnam, reflecting expectations for reconstruction, rose by 0.60%, an increase from the previous week's 0.39%. Seongnam as a whole rose by 0.44%. Gwacheon also rose by 0.48%, with the rate of increase expanding by 0.13 percentage points compared to the previous week.
In the provinces, the downward trend persists. This week, apartment prices in the provinces fell by 0.03%, the same decline as the previous week (-0.03%).
The five major metropolitan cities saw a decrease of 0.04%, while the eight provinces declined by 0.02%. Sejong rose by 0.10%, but the increase slowed compared to the previous week's 0.18%. For the past several weeks, the pace of increase has been steadily slowing. Nationwide, apartment sale prices rose by 0.05%, a slightly larger increase than the previous week's 0.03%.
The jeonse market showed a similar trend. Seoul apartment jeonse prices rose by 0.07%, a slight decrease in the rate of increase compared to the previous week's 0.08%. Gangdong-gu (0.30%), Dongjak-gu (0.15%), Yeongdeungpo-gu (0.14%), and Gwangjin-gu (0.13%) saw increases, but Seocho-gu (-0.07%) and Seongdong-gu (-0.02%) declined. Seongdong-gu turned to a decline for the first time in 16 weeks.
In Gyeonggi Province, Gwacheon (0.42%), Dongan-gu in Anyang (0.24%), and Bundang-gu in Seongnam (0.22%) saw increases, while Gwangmyeong (-0.18%) and Paldal in Suwon (-0.10%) declined. Jeonse prices in the provinces fell by 0.01%, with the five major metropolitan cities remaining flat (0.00%) and the eight provinces declining by 0.02%.
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