Seoul Apartment Price Gains Slow for Third Week... Gwacheon Turns to Decline [Real Estate A to Z]

Korea Real Estate Board Weekly Apartment Price Trends

The pace of apartment price increases in Seoul has slowed for the third consecutive week. The rate of increase fell compared to a week earlier in most areas, including the Gangnam region and neighborhoods along the Han River that had driven last year’s price gains. In Gwacheon, prices actually declined.

According to the weekly apartment price trend data released by the Korea Real Estate Board on the 20th, as of the third week of February (the 16th), apartment sale prices in Seoul rose 0.15% from a week earlier. The week-on-week increase in the fourth week of January was 0.31%, but the pace of growth has steadily slowed to 0.27% in the first week of February and 0.22% in the second week of February. This week’s rate of increase is the lowest in about five months, since mid-September last year when it recorded 0.12%.

The Korea Real Estate Board explained, "Due to the impact of the holiday period, transactions and purchase inquiries decreased, but demand was concentrated on large complexes, areas near subway stations, school districts, and complexes undergoing redevelopment."

Apartment-dense area viewed from N Seoul Tower on Namsan, Seoul. Yonhap News

In the southeastern part of Seoul, including Gangnam District (0.01%), Seocho District (0.05%), Songpa District (0.06%), and Gangdong District (0.08%), the overall increase was calculated at 0.05%, which is lower than in other regions. In 23 of the 25 districts, excluding Dobong District (0.11%) and Gangseo District (0.29%), the rate of increase narrowed compared with the previous week. This is seen as the result of an increase in listings, as strong measures targeting multiple-home owners, including tighter lending and tax policies, have been signaled. With buyers maintaining a wait-and-see stance in what remains a buyer-dominant market, the upward trend has clearly weakened compared with the past.

Areas adjacent to Seoul showed a similar pattern. Gwacheon, cited as one of the key locations for the government’s urban housing supply plan, fell 0.03%. This is the first time in about one year and eight months, since late May 2024, that weekly apartment sale prices in Gwacheon have turned negative. In Seongnam (0.21%), Yongin (0.30%), and Gwangmyeong (0.17%), the rate of increase also declined from the previous week.

The rate of increase in Seoul apartment jeonse prices was 0.08%, slightly down from 0.11% a week earlier. In Gyeonggi Province, apartment jeonse prices rose 0.11%, up from 0.10% the previous week. The Korea Real Estate Board stated, "While the number of jeonse listings continues to decrease, rental demand has remained focused on preferred complexes such as large developments near subway stations, leading to an overall increase in Seoul."