Seoul's apartment prices continue to rise, but key areas in Gangnam are experiencing declines, while prices in Gangbuk are increasing, highlighting a clear regional disparity.
The Korea Real Estate Agency announced on August 20 that for the third week of August 2026 (as of August 17), the national weekly apartment price trend showed a 0.22% increase in Seoul compared to the previous week, up from 0.21%. The greater Seoul area saw a 0.15% rise, while nationwide prices increased by 0.08%, with local areas remaining stable at 0.00%.
In Seoul, the 14 districts in Gangbuk rose by 0.30%, surpassing the 11 districts in Gangnam, which saw a 0.14% increase. Seongbuk recorded the highest increase at 0.45%, followed by Jungnang and Seodaemun at 0.44%, and Junggu and Gangbuk at 0.41%. In contrast, Seocho experienced a 0.09% decline, primarily due to falling prices in redevelopment areas like Jamwon and Banpo-dong, while Gangnam dropped by 0.05%, particularly in Daechi and Gaepo-dong.
Nationwide, Gyeonggi Province (0.15%), Chungbuk (0.07%), Jeonbuk (0.06%), Ulsan (0.04%), and Daejeon (0.03%) saw price increases. However, Jeju (-0.07%), Chungnam (-0.05%), Gyeongbuk (-0.03%), Gangwon (-0.02%), and Daegu (-0.02%) experienced declines.
A similar trend is evident in the rental market. Seoul's apartment rental prices rose by 0.19%, continuing their upward trajectory, but Seocho and Gangnam saw declines of 0.08% and 0.03%, respectively. In contrast, Gangbuk districts like Seongbuk (0.37%), Gangbuk (0.37%), Dobong (0.36%), and Nowon (0.35%) experienced relatively larger increases.
Overall, the rise in prices across Seoul is attributed to continued transactions in well-located complexes near subway stations and large developments. The Korea Real Estate Agency noted that despite a cautious market atmosphere, strong demand in certain areas has led to price increases.
The weakness in Gangnam is believed to be influenced by a cautious trading environment and the emergence of urgent sales at lower prices. Nam Hyuk-woo, a researcher at Woori Bank, stated, "The release of urgent sales by homeowners who decided to sell after the tax reform announcement is likely reflected in the prices."
There are concerns that pressure to sell high-priced apartments may increase. Nam explained, "For owners of high-end apartments valued in the upper 40 billion won range, the anticipated increases in property and capital gains taxes may pressure them to sell in key areas of Gangnam for the time being. Additionally, in redevelopment apartments with relatively poor living conditions, there is a trend of owners wanting to sell before restrictions on transferring membership rights take effect."
Analysts suggest that the weakness in Gangnam could also impact adjacent areas like the Han River Belt. Nam noted, "In the Han River Belt area of Seoul, many owners are looking to enter Gangnam, so in the short term, they will inevitably be affected by the market conditions in key Gangnam areas. As the calculations regarding whether they can bear the holding costs before entering Gangnam become more complex, the current price range is expected to persist for the time being."
* This article has been translated by AI.
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