Seoul Apartment Price Growth Slows, but Hangang Belt Sees Wider Increases

Korea Real Estate Board Releases Apartment Price Trends for Second Week of November
Seongdong, Yongsan, Seocho, and Songpa See Larger Increases... Gwacheon and Bundang Remain Strong

One month has passed since the implementation of the government’s October 15 policy measures, and while the pace of apartment price increases in Seoul has slowed, the upward trend itself has not subsided.

Han River Belt Sees Even Greater Increases

According to the Korea Real Estate Board’s nationwide weekly apartment price trend for the second week of November (as of November 10), the average sales price of apartments in Seoul rose by 0.17% compared to the previous week. Although the rate of increase slowed by 0.02 percentage points from the previous week’s 0.19%, certain areas along the Han River Belt saw their price increases expand.

Districts such as Seongdong-gu (from 0.29% to 0.37%), Yongsan-gu (from 0.23% to 0.31%), Seocho-gu (from 0.16% to 0.20%), and Songpa-gu (from 0.43% to 0.47%) all experienced a greater increase in prices compared to the previous week.

The Korea Real Estate Board explained, “While the overall market remains cautious, with a decrease in purchase inquiries and subdued transactions, some preferred complexes and those undergoing reconstruction in Seoul saw upward transactions, driving the overall increase in the city.”

Apartment Sales Price Index Change Rate by Province in the Second Week of November. Korea Real Estate Board

‘Balloon Effect’ Continues in Some Non-Regulated Areas of Gyeonggi Province

In Gyeonggi Province, the upward trend in regulated areas such as Gwacheon (from 0.44% to 0.40%) and Bundang (from 0.59% to 0.58%) slowed slightly, but still recorded high growth rates. In contrast, non-regulated areas like Gwonseon-gu in Suwon (0.21%) and Giheung-gu in Yongin (0.30%) saw their increases widen, demonstrating the so-called “balloon effect.”

However, in Hwaseong (from 0.26% to 0.25%), which has been cited as a representative area for the balloon effect, the difference from the previous week was minimal, and in Guri (from 0.52% to 0.33%), the increase narrowed by 0.19 percentage points.

The overall increase for Gyeonggi Province was 0.10%, down 0.01 percentage points from the previous week. Across the greater Seoul metropolitan area, the rate of increase slowed from 0.13% to 0.11%.

In non-metropolitan areas (0.01%), after returning to an upward trend for the first time in 100 weeks last week, the same rate of increase was maintained this week.

Nationwide, apartment sales prices rose by 0.06%.

Jeonse Market Also Continues Upward Trend

The nationwide jeonse (long-term lease) prices for apartments rose by 0.08%, matching the rate of increase from the previous week.

In Seoul (0.15%), prices increased mainly in preferred complexes such as those in top school districts and near subway stations. Incheon (from 0.06% to 0.08%) and Gyeonggi Province (from 0.09% to 0.10%) both saw larger increases in jeonse prices. The greater Seoul metropolitan area as a whole maintained the same 0.11% increase as the previous week.

In non-metropolitan regions (from 0.05% to 0.04%), the rate of increase slowed slightly. The five major metropolitan cities rose by 0.06%, and the eight provinces increased by 0.01%. In Sejong (0.49%), demand grew mainly in complexes with favorable living conditions, resulting in a relatively higher rate of increase.