Apartment prices in Seoul have increased by 0.31% in the third week of May, driven by strong demand in the Gangnam Three Districts (Gangnam, Seocho, and Songpa) and an influx of actual buyers in the outskirts.
According to the Korea Real Estate Agency's weekly apartment price trends released on May 21, the increase reflects a growing interest in mid- to low-priced apartments, particularly in areas where buyers have access to loans. Gwanak District saw the largest rise at 0.45%, up 0.25 percentage points from the previous week. Other districts with significant increases included Seongbuk (0.47%), Gwangjin (0.42%), Dobong (0.42%), and Nowon (0.39%).
Nam Hyuk-woo, a researcher at Woori Bank's Real Estate Research Institute, noted, "In areas like Gangbuk and Gwanak, the ease of obtaining loans and the availability of reasonably priced listings are attracting actual demand from first-time buyers and newlyweds. There is potential for sellers in these areas to move up to higher-priced regions along the Han River, which could have a cascading effect on the market."
After a period of decline due to the anticipated resumption of capital gains tax, the Gangnam Three Districts and Yongsan have all turned upward, with increases accelerating last week. Songpa District recorded the highest increase among the four districts at 0.38%, driven by major complexes in Jamsil and Geoyeo-dong. Gangnam (0.20%), Seocho (0.26%), and Gangdong (0.21%) also saw notable gains.
Nam added, "As asking prices rise, the market is generally in a wait-and-see mode. However, Songpa is a preferred area for those working in the semiconductor industry, which may continue to attract demand for relocation."
In southern Gyeonggi Province, key areas are also showing positive trends in apartment prices. Suji in Yongin (0.38%), Dongtan in Hwaseong (0.46%), Yeongtong in Suwon (0.35%), and Seongnam (0.47%) are leading the upward momentum, reflecting optimism about the booming semiconductor industry.
In non-regulated areas like Gunpo (0.18%) and regulated areas such as Uiwang (0.17%) and Gwangmyeong (0.72%), the influx of actual demand continues to support strong apartment prices.
* This article has been translated by AI.
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