"These Homes Are Under 1.5 Billion Won" Buyers Flock In... Dongdaemun and Yeongdeungpo Apartment Prices Soar After October 15 Measures

Seoul Apartment Prices Rise 2.96% in Three Months
Stronger Upward Trend in Mid- to Low-Priced Areas

After the October 15 Measures, which designated all of Seoul as a Land Transaction Permission Zone, apartment prices in areas such as Dongdaemun, Yeongdeungpo, and Seodaemun rose at a higher rate than those in the three Gangnam districts. This trend is attributed to the effects of stringent lending regulations, which reduced the limit for mortgage loans and led buyers to concentrate on areas with a high density of mid- to low-priced apartments.

According to Real Estate R114 on January 25, the average price of apartments in Seoul increased by 2.96% over the three months following the October 15 Measures.

Apartments in downtown Seoul as seen from Namsan. Photo by Yonhap News

By district, the highest increases were seen in Dongdaemun (4.18%), Yeongdeungpo (3.60%), Seodaemun (3.56%), Seongbuk (3.49%), Gangdong (3.44%), Dongjak (3.42%), Jung (3.37%), and Gangseo (3.31%).

These nine districts showed a stronger upward trend than both the overall Seoul average (2.96%) and the three Gangnam districts (2.86%). Since the October 15 Measures limited mortgage loans for homes priced at 1.5 billion won or less to a maximum of 600 million won, end-users have flocked to these areas, which have a higher proportion of mid- to low-priced apartments.

In Gyeonggi Province, average apartment prices rose by 2.06% after the measures were announced. Among the regulated areas, Hanam (4.58%), Gwacheon (3.53%), Seongnam (3.49%), Gwangmyeong (3.32%), Anyang (3.11%, with Dongan-gu at 3.33%), and Yongin (2.78%, with Suji-gu at 3.65%) all experienced price increases above the provincial average.

Meanwhile, in the third week of January, nationwide apartment prices rose by 0.32% compared to the previous week. Prices in Seoul increased by 0.41%, while the Seoul metropolitan area, Gyeonggi Province, and Incheon recorded changes of 0.36% and 0.30%, respectively. The five major metropolitan cities saw an increase of 0.21%, and other regions rose by 0.13%. All 17 major cities and provinces nationwide experienced an upward trend.