Gangnam Area Sees Surge in Jeonse Prices as Demand Shifts South

Seoul's apartment rental market is experiencing a shift in momentum from the northern to the southern regions, particularly in Gangnam. Gangdong District has seen a weekly surge of over 1%, leading the rise in rental prices across the city, while Songpa District continues to show strength. In Gyeonggi Province, areas adjacent to Seoul, such as Gwangmyeong and Dongtan in Hwaseong, are also witnessing significant increases in rental prices, indicating a broader upward trend centered in the southern region.
 
According to KB Real Estate's weekly apartment market trends, the average rental price for Seoul apartments rose by 0.33% in the fifth week of June, slightly up from the previous week's increase of 0.32%.
 
A notable change is the regional flow of rental price increases. The rental price growth rate in the Gangnam area reached 0.37%, surpassing the 0.29% increase in the northern regions. Just a week prior, the northern area had a stronger growth rate of 0.39% compared to Gangnam's 0.27%, but the situation has reversed in just one week.
 
Gangdong District is at the forefront of this surge, with rental prices increasing by 1.16% this week, the highest among Seoul's 25 districts. This rate is more than three times the citywide average increase of 0.33%. Songpa District also saw a 0.45% rise, while other districts such as Gwanak (0.44%), Guro (0.31%), and Dongjak (0.30%) reported increases.
 
KB Real Estate attributes the surge in Gangdong to a combination of reconstruction-related relocation demand and increased interest in school districts ahead of the summer vacation, leading to a rise in demand for rental properties. The influx of both relocation and educational demand is rapidly influencing the rental market in the Gangdong area.
 

Recently, a clear upward trend in rental prices has also emerged in key areas of Gyeonggi Province that share a living zone with southern Seoul.
 
Gwangmyeong City recorded a 0.96% increase in rental prices, the highest among major areas in the metropolitan region. During the same period, the sales price also rose by 0.95%, indicating a simultaneous increase in both rental and sales markets.
 
Gwangmyeong is a representative alternative residential area adjacent to Seoul's Guro and Geumcheon districts. With active redevelopment projects and excellent accessibility to Seoul, it continues to attract steady demand for actual residence. As housing prices in Seoul rise and regulations tighten, demand is shifting to Gwangmyeong, resulting in strong performance in both the sales and rental markets.
 
Dongtan in Hwaseong is showing a similar trend, with rental prices increasing by 0.96% this week and sales prices soaring by 2.27%, marking one of the highest growth rates in the country.
 
Dongtan has been experiencing rapid price increases due to expectations of expanded investment in the semiconductor industry, corporate relocations, and demand for proximity to workplaces. Although buyer sentiment has turned cautious following the government's designation of regulatory areas and land transaction permission zones, demand for actual residence remains robust. Some of the demand that previously flowed into the sales market is now staying in the rental market, contributing to upward pressure on rental prices.
 
Similar trends are observed in other regions of Gyeonggi Province. Guri City saw a 0.49% increase in rental prices, while Seongnam's Bundang District rose by 0.37%, Yangju by 0.37%, Suwon's Paldal District by 0.36%, and Suwon's Yeongtong District by 0.35%. The common factor is that rental strength continues in areas with good accessibility to Seoul or strong self-sufficient functions.
 

Conversely, while the northern regions of Seoul continue to see overall increases, they lack the momentum seen in Gangnam. Areas such as Gangbuk (0.21%), Seongbuk (0.43%), Eunpyeong (0.38%), Dobong (0.40%), and Dongdaemun (0.34%) have all reported increases, but the overall growth rate in these regions remains lower than that of Gangnam.
 
Market analysts suggest that multiple factors are simultaneously influencing the shift of the rental market's focus to the southern regions. The combination of relocation demand from Gangdong's reconstruction, school district demand, alternative residential demand due to regulations in Seoul, and actual residence demand driven by industrial and transportation developments in southern Gyeonggi are stimulating the rental markets in Gangnam and adjacent areas.
 
Experts indicate that future changes in the supply of new apartments in Seoul, trends in rental listings, and schedules for reconstruction relocations could be key variables determining the direction of the rental market.
 
An industry insider noted, “The simultaneous strength of both the sales and rental markets in southern Gyeonggi is significant. Gwangmyeong and Dongtan have both seen substantial increases in sales and rentals, and the rental market in Gangnam is also expanding again. This trend shows that demand for actual residence, rather than mere investment, is supporting the market, leading to simultaneous movements in both rental and sales.”