As housing prices in Seoul continue to rise, the strong price growth originating from Dongtan is spreading to nearby areas in southern Gyeonggi Province. However, due to recent expansions of regulated areas and stricter lending regulations, the rate of increase in Dongtan has somewhat slowed, and analysts suggest that it remains to be seen whether a balloon effect will fully materialize.
According to the Korea Real Estate Agency's report on nationwide apartment price trends for the week ending June 29, 2026, the national average apartment sale price increased by 0.09% compared to the previous week. The metropolitan area saw a 0.20% rise, while Seoul recorded a 0.27% increase, with provincial areas remaining stable at 0.00%.
In Seoul, demand continues to be strong in areas undergoing reconstruction and in desirable locations near subway stations and large complexes, leading to sustained upward transactions. However, the growth rate has slightly decreased from 0.30% last week to 0.27% this week.
In northern Seoul, Dobong District saw the highest increase at 0.37%, driven by large complexes in Chang-dong and Ssangmun-dong. Other districts such as Dongdaemun (0.36%), Seongbuk (0.36%), Nowon (0.33%), and Jungnang (0.32%) also experienced growth, contributing to an overall upward trend in northern Seoul.
In southern Seoul, Guro District rose by 0.35%, primarily around the Gaebong and Gocheok-dong subway areas. Songpa District, focusing on reconstruction projects in the Goyeon and Sincheon-dong areas, increased by 0.32%. Other districts such as Gwanak (0.30%), Gangdong (0.28%), and Geumcheon (0.26%) also saw gains.
In Gyeonggi Province, Dongtan in Hwaseong recorded a remarkable increase of 1.46%, maintaining one of the highest growth rates in the country, particularly around Cheonggye-dong and Yeongcheon-dong. Other areas like Seongnam's Sujeong District (0.43%), Suwon's Yeongtong District (0.41%), and Seongnam's Bundang District (0.41%) also showed strong performance. In contrast, Gwacheon City experienced a decline of 0.12% in areas like Jungang-dong and Wonmun-dong.
The jeonse market also continued its upward trend. Nationwide, apartment jeonse prices rose by 0.11%, with the metropolitan area increasing by 0.19% and Seoul by 0.30%. In Seoul, demand for jeonse remained steady in areas with excellent living conditions, such as near subway stations and in good school districts.
In Seoul, the largest increases in jeonse prices were seen in Seongbuk (0.48%), Dobong (0.47%), Seongdong (0.46%), Nowon (0.42%), Geumcheon (0.42%), Gangdong (0.42%), and Songpa (0.39%).
Nam Hyuk-woo, a researcher at Woori Bank's Real Estate Research Institute, noted, "While the price surge in Dongtan has slowed due to the burden of rapid increases and the impact of being designated as a regulated area, we are seeing demand shift to relatively affordable new constructions in Giheung District of Yongin and Yeongtong District of Suwon. Additionally, there is a continued trend of upgrading to higher-priced areas in popular regions of southern Gyeonggi, such as Bundang and Jungwon."
However, he added, "While there is a possibility that some demand may shift to non-regulated areas like Namyangju, Pyeongtaek, and Byeongjeom, we need to observe whether a strong balloon effect will emerge as seen in the past, given the impact of lending regulations and high interest rates."
* This article has been translated by AI.
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