The real estate market in Seoul is witnessing a shift in price momentum from the Gangnam area to non-Gangnam districts, with Seongbuk District showing notable strength. This year, the cumulative increase in apartment prices in Seongbuk has surpassed 10%, making it the only district among Seoul's 25 to achieve a double-digit rise. Recently, both sales and rental prices have recorded the highest increases in the city.
According to the Korea Real Estate Agency, as of the fourth week of July, apartment prices in Seongbuk District rose by 10.31% compared to the beginning of the year, a significant increase compared to last year's 1.49%. Following Seongbuk, Guro District saw an 8.80% increase, Gangseo District 8.78%, Seodaemun District 8.04%, and Dongdaemun District 7.97%. While high-end apartments in the Han River area and Gangnam led the price surge last year, this year has seen a clear trend of lower-priced non-Gangnam areas catching up.
Recent weekly statistics confirm Seongbuk's strong performance. According to KB Kookmin Bank's report on the apartment market for the fourth week of July, as of July 27, apartment prices in Seongbuk rose by 0.71% from the previous week, more than double the Seoul average increase of 0.32%, marking the highest rate among the 25 districts.
During the same period, Gangseo and Guro districts increased by 0.64% and 0.61%, respectively, while Nowon and Dongdaemun districts saw increases of 0.49% and 0.48%. Overall, the rate of increase in apartment prices across Seoul slowed from 0.34% to 0.32%, but the northern and non-Gangnam areas, including Seongbuk, continued to experience a relatively steep rise.
The rise in Seongbuk's apartment prices can be traced back to Gileum New Town. Gileum-dong benefits from easy access to downtown areas like Seoul Station and City Hall via Subway Line 4, and has transformed into a residential area with a concentration of new and nearly new apartments due to large-scale redevelopment projects. As prices for new apartments in Gangnam have surged, demand has shifted to Gileum New Town, which offers relatively lower entry prices and excellent access to the city center.
Indeed, there have been a series of record transactions in Gileum New Town's representative new complexes. An 84-square-meter unit at Lotte Castle Clasia sold for 1.87 billion won last month, up about 400 million won from the previous year's price of 1.473 billion won. As prices for new standard-sized apartments approach 2 billion won, it has become difficult to classify Seongbuk as merely a mid-to-low price area.
Recently, the price increase has extended beyond Gileum-dong to Jongam-dong and Jangwi-dong. KB Real Estate noted that this week, significant price increases were observed in major large complexes in Jongam and Jangwi-dong. Jongam-dong features a concentration of established and nearly new large complexes with good access to the city and living infrastructure, while Jangwi-dong is rapidly developing new residential areas due to the Jangwi New Town redevelopment project.
The simultaneous rise in rental prices in these areas also supports the increase in Seongbuk's sales prices. As of July 27, apartment rental prices in Seongbuk rose by 0.62% from the previous week, the second highest increase in Seoul after Dongdaemun's 0.71%. The average rental price increase in Seoul during the same period was 0.25%, making Seongbuk's increase about 2.5 times higher than the average.
In Seongbuk, the shortage of rental listings around the Gileum-dong station area has led to rising asking prices. With a scarcity of rental properties across the northern districts, some tenants facing high rental prices are moving to the sales market, contributing to the upward pressure on home prices.
However, experts caution that the rapid short-term price increases in Seongbuk may not be sustainable. As asking prices for new large complexes rise quickly, some buyers are delaying transactions. With prices in major complexes in Gileum-dong nearing 2 billion won, the burden of financing and loan capacity may limit further increases.
A real estate industry insider stated, “Seongbuk District has good access to the city center and is home to a concentration of new large complexes in Gileum and Jangwi New Towns, making it attractive for genuine demand from the northern region. However, given the recent rapid price increases and ongoing uncertainties in finance and taxation, it is essential to monitor whether this price rise is supported by actual transaction volumes.”
* This article has been translated by AI.
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