Seoul's apartment prices have seen a slight decrease in the rate of increase over the past week, but the upward trend is spreading beyond the Gangnam area to large complexes in the northern and southwestern outskirts. Initially, high-priced complexes near the Han River and those undergoing redevelopment drove the market up, but recently, demand has shifted to mid- to low-priced complexes and those near subway stations, supporting prices across Seoul.
According to the Korea Real Estate Agency's report on weekly apartment price trends for the fourth week of May, as of May 25, the average sale price of apartments in Seoul rose by 0.25% compared to the previous week. While this is a slowdown from the previous week's increase of 0.31%, it significantly exceeds the national average of 0.06% and the metropolitan area’s increase of 0.13%. The agency noted that while localized price increases occurred in redevelopment areas and large complexes, some regions experienced a slowdown in transactions as sellers and buyers adopted a wait-and-see approach.
Notably, the price increase is not confined to the Gangnam area. The 14 districts in Gangbuk saw a rise of 0.28%, surpassing the 0.22% increase in the 11 districts of Gangnam. In particular, the Buk-gu district rose by 0.42%, driven by major complexes in Mia and Beon-dong, while Jung-gu increased by 0.41%, primarily in the Sindang and Hwanghak-dong areas. Gwangjin and Seongbuk districts also saw increases of 0.37% and 0.34%, respectively.
In Gangnam, not only traditional high-priced areas are seeing increases. Gangseo and Guro districts rose by 0.32%, while Songpa increased by 0.28%, and Yeongdeungpo and Gwanak districts both saw increases of 0.27%. The buying trend is also spreading to relatively affordable areas such as Gayang and Hwagok-dong, as well as Gaebong and Gocheok-dong, in addition to Jamsil and Bangi-dong.
The jeonse market is also influencing sale prices. During the same period, the average jeonse price for apartments in Seoul rose by 0.26%. Although this is a decrease from the previous week's increase of 0.29%, it remains at a high level. As inquiries from tenants continue to rise, demand is accumulating in preferred complexes and areas near subway stations, leading to price increases for well-maintained listings.
The rise in jeonse prices could stimulate demand for purchasing in the Gangbuk and outer areas. In Seongbuk, jeonse prices increased by 0.44%, primarily in large complexes in Gileum and Donam-dong, while Seongdong (0.42%), Dobong (0.41%), and Gwangjin (0.40%) also showed high increases. As the burden of jeonse prices grows, there is a greater likelihood that buyers will move to more affordable outer complexes or large developments.
A similar trend is observed in the Gyeonggi region. Sale prices increased by 0.09%, a slowdown from the previous week, but areas like Dongtan in Hwaseong rose by 0.49%, Jungwon in Seongnam by 0.41%, and Gwangmyeong by 0.30%. While there remains buying interest in areas with good access to Seoul or demand for large complexes and smaller units, cities like Icheon and Pyeongtaek saw declines of 0.22% and 0.14%, respectively.
Industry experts view the Seoul apartment market as undergoing a reallocation of buying interest across different price ranges rather than entering a phase of overheating. High-priced complexes are experiencing selective transactions due to price burdens and regulatory impacts, while mid-priced complexes in the 1 billion to 1.5 billion won range and those near subway stations are supported by genuine demand.
A real estate industry official stated, "While the rate of increase in Seoul's housing prices has slowed, it does not mean that buying interest has diminished. The high-priced areas in Gangnam are taking a breather, while genuine buyers feeling the pressure of jeonse prices are shifting towards large complexes and developments in Gangbuk and the southwestern areas, gradually changing the market's balance." He added, "As long as jeonse prices continue to rise, it will be difficult for sale prices to decline significantly."
* This article has been translated by AI.
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