Increase in Multi-Homeowner Listings Narrows Seoul Apartment Price Gains for 2nd Week...Clear Slowdown in Gangnam [Real Estate AtoZ]

Gwanak-gu ranks No. 1 in Seoul for 3 consecutive weeks
Suji in Yongin ranks No. 1 nationwide
Sharp gains in mid- to low-priced areas

The pace of apartment sale price increases in Seoul has narrowed for the second consecutive week. As the end of the temporary suspension of the capital gains tax surcharge on multi-homeowners approaches, many multi-homeowners are listing properties at lower asking prices to reduce their tax burden, which is cited as the main reason.

According to the weekly apartment price trends for the second week of February (as of February 9) released by the Korea Real Estate Board on the 12th, the average apartment sale price growth rate in Seoul was recorded at 0.22%, down 0.05 percentage points from the previous week.

However, apartment prices in Seoul have continued to rise for 53 consecutive weeks. The Korea Real Estate Board stated, "Prices rose across Seoul as transactions at higher prices were concluded mainly in popular complexes, such as those undergoing redevelopment, large-scale complexes, and areas near subway stations." The Seoul metropolitan area rose 0.14% (a slight decrease from the previous week), and the nationwide figure increased 0.09% (unchanged).

On the 5th, an apartment sale listing was posted in front of a real estate agency located within a large apartment complex in Seoul. Yun Dongju, Reporter

Gwanak-gu Ranks No. 1 in Seoul for 3 Consecutive Weeks

Within Seoul, the slowdown in the Gangnam area is clear. The southeastern area (Seocho, Gangnam, Songpa, and Gangdong) saw its rate fall from 0.18% to 0.10%, and Gangnam-gu dropped from 0.07% to 0.02%, recording the lowest increase among all districts in Seoul. Gangdong-gu (0.29%→0.18%), Seocho-gu (0.21%→0.13%), and Songpa-gu (0.18%→0.09%) also saw their upward momentum weaken.

This appears to be due to a concentration of high-priced multi-homeowner listings in the Gangnam area, as owners facing a heavy holding burden rush to sell before the end of the temporary suspension of the capital gains tax surcharge. Gangnam-gu's cumulative increase this year, at 0.67%, is less than half the Seoul average of 1.48%.

By contrast, mid- to low-priced areas such as Gwanak-gu (0.57%→0.40%), Seongbuk-gu (0.41%→0.39%), and Guro-gu (0.34%→0.36%) saw their growth rates narrow somewhat but still maintained strong gains above the Seoul average of 0.22%. Gwanak-gu, driven mainly by large complexes in Bongcheon-dong and Sillim-dong, ranked first in Seoul’s weekly growth rate for the third consecutive week. Its cumulative increase of 2.48% this year is the highest among all districts in Seoul.

Rate of change in apartment sale price index by city and province as of the 9th. Korea Real Estate Board

Sujigu, Pyeongchon, and Guri 'Surging Ahead'

While the rise in Seoul apartment prices is losing steam, some parts of southern Gyeonggi Province are actually accelerating. Sujigu in Yongin (0.59%→0.75%) and Dongan-gu in Anyang (0.48%→0.68%) took first and second place nationwide, respectively. These figures are more than three times the growth rate in Seoul. Analysts say buyers are shifting to these areas because prices are relatively lower than in Seoul while still offering good metropolitan transportation access, including the Shinbundang Line.

In Sujigu, Yongin, higher-priced transactions were concluded mainly in complexes near subway stations in Pungdeokcheon-dong and Sanghyeon-dong, pushing this year’s cumulative increase to 3.52%, the highest in the country. In Dongan-gu, Anyang, major complexes in Hogye-dong and Pyeongchon-dong led the gains, bringing its cumulative increase to 2.80%, the second highest nationwide.

The rapid rise of Guri-si (0.55%) is also notable. Centered on Inchang-dong and Gyomun-dong, its weekly increase has continued to expand over the past three weeks, at 0.42%, 0.53%, and 0.55%. Its cumulative increase stands at 1.91%.

Jeonse prices rose 0.08% nationwide. Seoul (0.11%), the Seoul metropolitan area (0.10%), and non-metropolitan regions (0.06%) all recorded increases. In Seoul, ahead of the spring moving season, overall prices climbed as a shortage of listings and rising tenant inquiries led to higher-priced transactions, particularly in large complexes and areas near subway stations, while demand remained strong in neighborhoods near good school districts.