KB Real Estate: "Seoul Apartment Sale Prices in November See Highest Growth in 5 Years and 2 Months" [Real Estate AtoZ]

Dongjak, Mapo, and Other "Hangang Belt" Districts Lead the Surge

Jamsil Apartment, Songpa-gu, Seoul. Photo by Jo Yongjun

This month, apartment sale prices in Seoul recorded the highest rate of increase in about five years, according to a survey by KB Real Estate.

According to the nationwide housing price trends for November released by KB Real Estate on the 23rd, apartment sale prices in Seoul rose by 1.72% compared to the previous month. This is the highest rate of increase in five years and two months since September 2020 (2.00%).

The increase was 0.26 percentage points higher than last month's highest rate of the year (1.46%), marking an 18-month streak of consecutive growth.

Despite the October 15 Measures for Housing Market Stabilization... Sharp Increases Centered Around the Hangang Belt

Apartment Price Change Rates by City and Province. KB Real Estate

This survey was conducted as of the 10th of this month. The results reflect the situation after the announcement of the October 15 measures, which designated all of Seoul and 12 regions in Gyeonggi Province as regulated areas.

Despite tightened loan regulations and the imposition of a two-year mandatory residency requirement, which have led to subdued transactions and a decrease in available listings, the expectation of future price increases has resulted in the few available properties being traded at higher prices, thereby widening the rate of increase.

By region, Dongjak District recorded a 3.94% increase, the highest since September 2018 (4.41%). This was followed by Seongdong District (3.85%), Gwangjin District (3.73%), Mapo District (3.41%), Songpa District (2.74%), Jung District (2.70%), and Gangdong District (2.35%), with the Hangang Belt area showing particularly high rates of increase.

Apartment Price Change Rates in Major Districts of Seoul. KB Real Estate

Among Seoul's 25 administrative districts, there were no areas where prices fell this month, continuing the trend from last month.

The Seoul metropolitan area saw a 0.78% increase, with Seoul (1.72%), Gyeonggi Province (0.49%), and Incheon (0.02%) all recording rises.

Gyeonggi Province maintained its upward trend for the sixth consecutive month. Bundang District in Seongnam City (3.81%), Sujeong District in Seongnam City (2.91%), Gwangmyeong City (2.36%), Hanam City (2.18%), Gwacheon City (2.00%), and Suji District in Yongin City (1.87%) all posted high rates of increase.

Nationwide, apartment sale prices rose by 0.41%, with the rate of increase widening by 0.13 percentage points compared to the previous month (0.28%).

The 'KB Leading Apartment 50' index, which quantifies the top 50 apartment complexes by market capitalization, reached 130.7, up 1.19% from the previous month, marking a 21-month streak of increases. However, the rate of increase was about 1 percentage point lower than in October (2.18%).

Seoul Jeonse Prices Also Rise for 28 Consecutive Months

Nationwide, apartment jeonse prices rose by 0.29%, marking nine consecutive months of increases. In Seoul, jeonse prices rose by 0.56%, maintaining a 28-month upward streak.

In Seoul, Gangdong District (1.58%), Gwangjin District (1.04%), Songpa District (0.90%), and Dongjak District (0.80%) saw particularly large increases in jeonse prices.

The nationwide apartment sale price outlook index was 104.1, exceeding the baseline of 100 for the third consecutive month, indicating that expectations for price increases remain dominant.

In Seoul, the index was 107.8, down 16.6 points from the previous month; Gyeonggi Province recorded 106.5, and Incheon was at 99.1.