Weekly Apartment Price Trends for the Fourth Week of June
Government Regulations Imminent as Seoul Home Prices Overheat
Regional Areas Continue Over Year-Long Decline... Extreme Polarization Accelerates
This week, apartment prices in Seoul surged once again, surpassing last week's record-breaking increase-the largest in six years and nine months-after just one week. In contrast, regional areas have continued to decline for over a year, widening the gap with the Seoul metropolitan area. With this sharp upward trend persisting, there are growing expectations that the government may soon introduce additional regulations.
According to the “Weekly Apartment Price Trends for the Fourth Week of June (as of the 23rd)” released by the Korea Real Estate Board on June 26, apartment sale prices in Seoul rose by 0.43% compared to the previous week, marking the 21st consecutive week of increases. This figure exceeds last week’s 0.36% rise and represents the highest weekly growth rate since the second week of September 2018 (0.45%).
The rapid surge in Seoul’s housing prices appears to be driven by a rush of “last-minute” buyers ahead of the implementation of the third phase of the Debt Service Ratio (DSR) regulation next month, as well as a spillover effect with buying demand spreading to areas adjacent to land transaction permit zones. Additionally, expectations that the new administration will expand liquidity to stimulate the economy have further fueled buyer sentiment.
Among Seoul’s districts, Seongdong-gu recorded the highest increase, rising by a remarkable 0.99%. This is an even greater jump than last week’s 0.76%. Demand was concentrated in popular small- and mid-sized complexes in areas such as Geumho, Hawangsimni, and Haengdang-dong. Mapo-gu also saw its increase nearly reach 1% (0.66%→0.98%). Both Seongdong-gu and Mapo-gu posted their highest figures since statistics began in May 2012.
Yongsan-gu also showed strong growth (0.61%→0.74%). The three Gangnam districts saw even larger weekly increases: Gangnam-gu (0.75%→0.84%), Songpa-gu (0.70%→0.88%), and Seocho-gu (0.65%→0.77%). The Korea Real Estate Board analyzed, “There is active buying inquiry activity and high asking prices, especially in complexes undergoing or pursuing reconstruction and in large-scale complexes, leading to continued upward transactions.”
As market overheating persists, there are predictions that the government may accelerate its response. On June 12, the government indicated the possibility of further action by stating it was “reviewing all available policy tools,” but has since taken no additional measures. However, with leading indicators such as transaction volume also rising, the likelihood of follow-up measures-such as expanding regulated zones or strengthening lending restrictions-is increasing.
In Gyeonggi Province, Bundang-gu in Seongnam (0.60%→0.67%) and Gwacheon (0.48%→0.47%) led the gains, reflecting expectations for redevelopment projects. Dongan-gu in Anyang followed with a 0.25% increase. In contrast, Pyeongtaek (-0.15%) and Ilsandong-gu in Goyang (-0.14%) declined due to the burden of new housing supply.
Apartment Sale Price Index Change Rates by City and Province for the Fourth Week of June. Provided by Korea Real Estate Board
Nationwide, apartment prices rose by 0.06%, a larger increase than the previous week’s 0.05%. The Seoul metropolitan area continued its upward trend (0.13%→0.16%), while regional areas remained in decline (-0.03%→-0.03%). Home prices in regional areas have been falling since the last week of May last year (-0.01%). Of all regions, only Jeonbuk managed to hold steady, posting a 0.08% increase.
The rental market also continued to rise, particularly in parts of Gangnam, Bundang, and Gwacheon. Apartment rental prices in Seoul increased by 0.09%, up from 0.07% the previous week. Gangdong-gu (0.30%→0.36%), Dongjak-gu (0.15%→0.28%), Songpa-gu (0.12%→0.15%), and Yeongdeungpo-gu (0.14%→0.12%) led the gains. However, Seocho-gu turned negative, declining by -0.07%.
In Gyeonggi Province, Bundang-gu in Seongnam (0.22%→0.67%) and Gwacheon (0.43%→0.47%) continued to post high growth rates, while Hanam (0.18%) and Dongan-gu in Anyang (0.16%) also showed strong gains. Incheon shifted to a neutral position (0.00%).
In regional areas, average apartment rental prices fell by -0.01%, maintaining the previous week’s rate of decline. Sejong City saw its increase widen to 0.13%, up from 0.11% the previous week, but Daejeon (-0.10%) and Jeju (-0.04%) continued to decline.
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