Seoul Home Prices Stabilize While Southern Gyeonggi Sees Gains in Suwon, Gunpo, and Yongin

Seoul's apartment prices have seen a slowdown in growth for the second consecutive week, while the southern Gyeonggi region, particularly Suwon, is experiencing a surge in prices. As some areas of Seoul take a breather, the price increases in key southern Gyeonggi locations highlight a growing disparity in the housing market within the metropolitan area.
 According to the Korea Real Estate Agency's weekly apartment price trends for the fourth week of October (as of the 26th), apartment prices in Seoul rose by 0.09% compared to the previous week, marking the 90th consecutive week of increases. However, the rate of increase has slowed for two weeks in a row.

In contrast, the southern Gyeonggi region continues to show strength, particularly in Suwon, where apartment prices increased by 0.45%, reflecting an expanded growth rate. The districts of Yeongtong (0.58%) and Gwonseon (0.42%) led this upward trend. Gunpo, adjacent to Suwon, recorded a 0.58% increase, the highest in the metropolitan area, while Uiwang saw a rise of 0.47%.

The price increase in Yongin's Giheung district was also notable, with a 0.54% rise, marking a 0.24 percentage point increase from the previous week. This is the largest growth rate in the metropolitan area over the past six weeks. Osan also recorded its highest increase during this period at 0.27%. Although the growth rate in Hwaseong's Byeongjeom has slowed, it remains high at 0.44%.

However, not all areas in southern Gyeonggi experienced increased growth. Bundang (0.20%) and Jungwon (0.25%) in Seongnam, along with Dongan (0.38%) in Anyang and Dongtan (0.41%) in Hwaseong, saw a decrease in their growth rates compared to the previous week.

Nam Hyuk-woo, a researcher at Woori Bank's Real Estate Research Institute, explained, "The demand for upgrading to higher-priced properties in southern Gyeonggi has led to a chain reaction of price increases in these areas. Additionally, Dongtan continues to attract buyers looking to move to popular transit-oriented developments, resulting in steady transactions."
 In Seoul, the Gangnam District (Gangnam, Seocho, and Songpa) continues to experience price declines. Gangnam saw a decrease of 0.38%, primarily in large complexes in Yeoksam and Apgujeong, while Seocho dropped by 0.35%, particularly in Banpo and Seocho-dong. Songpa recorded a decline of 0.22%, with prices falling mainly in Jamsil and Sincheon-dong. Gangnam and Seocho have now seen 12 consecutive weeks of declines, while Songpa has experienced eight weeks of decreases.

Conversely, northern Seoul has recorded relatively higher growth rates. The average increase across 14 districts north of the Han River was 0.22%, surpassing the overall increase in Seoul (0.09%). Seongbuk (0.39%), Seodaemun (0.36%), and Jongno (0.35%) led the upward trend, with Gangbuk and Dobong both rising by 0.32%.

However, the growth rates varied across different areas in Seoul. Dongdaemun (0.26%) and Gangseo (0.22%) recorded their lowest increases in the past six weeks, while Nowon (0.12%) and Gwanak (0.22%) also saw reduced growth. In contrast, Seongbuk and Seodaemun maintained their previous levels, while Gangbuk (0.32%) and Geumcheon (0.30%) experienced slight rebounds.

Despite a slowdown in transactions due to fatigue from recent price increases and loan burdens, the limited supply of properties for sale and rental listings in Seoul has kept price declines in check. In southern Gyeonggi, however, demand is flowing into areas adjacent to Seoul or those with relatively lower price burdens.

Nam noted, "Homebuyers are seeking competitively priced properties in popular areas near Seoul or in non-regulated regions. The strong price trends in Seoul are beginning to spread to Gyeonggi, and we expect the price increases in the region to continue for the foreseeable future, regardless of regulatory status."