Seoul Apartment Prices Up 0.08%... Reconstruction and Key Areas Remain Strong Despite Regulations [Real Estate AtoZ]

Growth Slows in Three Gangnam Districts,
While Mapo, Yongsan, and Seongdong See Larger Gains
Seoul Maintains Upward Trend Amid Flat Greater Seoul and Declining Regional Markets
Steady Rental Demand; Seoul Jeonse Prices Rise 0.07%
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Apartment prices in Seoul have risen for 31 consecutive weeks. Although the rate of increase remained the same as the previous week, there are signs that buying sentiment is reviving in some areas. As the impact of the June 27 loan regulation, which limits mortgage loans to 600 million won, appears to be weakening, attention is now turning to upcoming supply measures.

According to the Korea Real Estate Board on September 4, as of the first week of September (based on September 1), apartment sale prices in Seoul rose by 0.08%, the same increase as the previous week. This marks the 31st consecutive week of gains.

By region, the three Gangnam districts showed a mixed trend: Seocho (0.13%) and Gangnam (0.09%) remained flat, while Songpa slowed slightly from 0.20% to 0.19%. In contrast, Jung-gu (0.11%), Yongsan-gu (0.13%), Seongdong-gu (0.20%), and Mapo-gu (0.12%) saw larger increases. The Korea Real Estate Board explained, "Despite the overall wait-and-see attitude, transactions continued to rise in reconstruction complexes and preferred areas."

The overall increase rate in the greater Seoul area slowed slightly to 0.02%. Gyeonggi Province turned flat at 0.00%, and Incheon saw a larger decline. In the provinces, the rate remained at -0.02%, the same as the previous week, but the five major metropolitan cities experienced a greater drop. The national average sale price has remained flat for three consecutive weeks.

The jeonse market continued its upward trend, especially in Seoul. Jeonse prices in Seoul rose by 0.07%, up from 0.06% the previous week. The greater Seoul area saw a 0.03% increase, and the provinces rose by 0.02%. Analysts attribute this to steady rental demand, particularly in preferred complexes such as those near subway stations and large apartment complexes.

The real estate industry believes that the direct effect of loan regulations has reached its limit. An industry official said, "The regulations have contributed to dampening buying sentiment to some extent, but with the supply gap and expectations for reconstruction, demand is partially recovering," adding, "The upcoming supply measures to be announced soon will be a watershed for market stability."