As the upward trend in Seoul's apartment prices continues, the growth in key areas like Gangnam and Seocho has slowed, while the rise has spread to Gangbuk and some regions in Gyeonggi Province.
The Korea Real Estate Agency reported on August 13 that the national apartment sales price index increased by 0.08% compared to the previous week. The metropolitan area saw a 0.14% rise, while Seoul's prices increased by 0.21%. However, this marks a decrease from the previous week's increase of 0.26%.
In Seoul, a clear disparity emerged between the Gangnam and Gangbuk areas. The 11 districts in Gangnam saw a modest increase of 0.14%, while the 14 districts in Gangbuk rose by 0.29%. Notably, Seocho and Gangnam districts experienced declines of 0.04% and 0.02%, respectively. In contrast, districts such as Jungnang, Seongbuk, and Seodaemun saw increases of 0.46%, 0.43%, and 0.41%, while Jung-gu and Gangbuk both rose by 0.40%.
In Gyeonggi Province, certain areas also showed significant price increases. Jungwon-gu in Seongnam recorded the highest rise in the metropolitan area at 0.55%, followed by Byeongjeom in Hwaseong at 0.42% and Gwangmyeong at 0.40%. Conversely, Icheon and Paju saw declines of 0.14% and 0.10%, respectively.
The rental market also reflected the temperature difference between Seoul and Gangbuk. Apartment rental prices in Seoul rose by 0.20%, a decrease from the previous week's increase of 0.25%. Gangbuk's 14 districts saw a 0.24% increase, while Gangnam's 11 districts rose by 0.16%. Gangnam district experienced a 0.03% decline in rental prices, while significant increases were noted in key Gangbuk areas such as Seongbuk (0.40%), Nowon (0.35%), Seodaemun (0.29%), and Mapo (0.26%).
In the provinces, Chungbuk's price increases were particularly notable. Apartment sales prices in Chungbuk rose by 0.07%, the highest among the seven provinces. Within Chungbuk, Heungdeok-gu in Cheongju saw a 0.21% increase, the largest in the province, while Sangdang-gu rose by 0.05%. Chungju also experienced a 0.05% increase. Heungdeok-gu is home to the Cheongju General Industrial Complex, which includes SK Hynix's campuses and companies like LG Chem, LS Electric, and Orion.
The rental market in Chungbuk also showed strength, with apartment rental prices rising by 0.09%, the highest increase among the seven provinces. Heungdeok-gu in Cheongju saw a 0.19% increase, Chungju 0.16%, and both Sangdang-gu in Cheongju and Jecheon saw increases of 0.08%.
Nationally, both sales and rental prices continued to rise. The national apartment sales price increased by 0.08%, while rental prices rose by 0.09%. However, the number of areas experiencing price increases has decreased. The number of areas with rising sales prices fell from 117 to 113, while areas with declining prices increased from 58 to 61. Similarly, the number of areas with rising rental prices decreased from 152 to 142, while declining areas rose from 21 to 29.
Nam Hyuk-woo, a researcher at Woori Bank's real estate research institute, stated, “The three districts in Gangnam and the Han River belt are currently in a wait-and-see mode as they assess costs and benefits related to the recent tax reform proposal.”
He added, “In the outskirts, rental price increases have been steep, while sales price increases have been relatively slow, leading to a price alignment phenomenon. In areas like Jungnang and Gangbuk, demand from first-time homebuyers and newlyweds continues, particularly for apartments priced around 600 million won, where the impact of reduced loan limits is relatively minor.”
* This article has been translated by AI.
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