Seoul Apartment Prices Rise 0.82% in September... Gangnam Area Average Sale Price Surpasses 1.8 Billion Won for the First Time [Real Estate AtoZ]

All 25 Districts in Seoul See Price Increases
Songpa, Gangdong, Gwangjin, and Seongdong Lead the Gains
Bundang and Gwangmyeong Remain Strong in the Greater Seoul Area
Five Major Metropolitan Cities Continue to Weaken
Average Price in 14 Gangnam Districts Surpasses 1.8 Billion Won
Market Sentiment Index Soars

In September, nationwide housing sale prices rose for the sixth consecutive month, with apartment prices in Seoul accelerating their gains and showing signs of overheating. Notably, the average sale price of apartments in the Gangnam area surpassed 1.8 billion won for the first time since statistics have been compiled. Expectations for further increases in housing prices have also risen significantly.

Apartment buildings in downtown Seoul. Photo by Yonhap News.

According to the "September National Housing Price Trends" report released by KB Kookmin Bank's KB Real Estate, apartment sale prices in Seoul increased by 0.82% in September, widening from the previous month's 0.60% rise. This marks the 16th consecutive month of gains for Seoul apartments. Nationwide, apartment sale prices also rose by 0.10%, marking six straight months of increases.

The September rise in Seoul apartment prices was led by Songpa-gu (1.60%), Jung-gu (1.54%), Gangdong-gu (1.53%), Gwangjin-gu (1.52%), and Seongdong-gu (1.47%). Even Jongno-gu, which recorded a decline last month, saw a turnaround with a 0.09% increase. As a result, all 25 districts in Seoul experienced increases in apartment prices in September.

On the back of this upward trend, the average sale price of apartments in Seoul reached 1,436.21 million won. Among these, the average for the 14 Gangnam districts was 1,806.77 million won, surpassing 1.8 billion won for the first time since December 2008, when statistics began to be compiled.

In the greater Seoul area, Gyeonggi Province saw a 0.14% increase, marking its fourth consecutive month of gains, while Incheon turned flat at 0.00%. In Gyeonggi Province, areas such as Bundang-gu in Seongnam (1.77%) and Gwangmyeong (1.23%) showed strength due to expectations for redevelopment.

In contrast, apartment sale prices in the five major metropolitan cities continued to decline, falling by 0.20%. Ulsan was the only city to see an increase (0.22%), while Busan (-0.27%), Daegu (-0.27%), Gwangju (-0.25%), and Daejeon (-0.21%) all experienced declines.

Expectations for the market going forward have grown even stronger. The sale price outlook index for Seoul reached 116.4, a sharp jump of 13.8 points from the previous month's 102.6. When this index exceeds the baseline of 100, it indicates that more certified real estate agents expect housing prices to rise in the next two to three months. The nationwide outlook index also surpassed the baseline, reaching 101.6.