Following government lending regulations, apartment prices in Seoul have continued to rise, but the strong price growth in the Dongtan area, part of the Southern Gyeonggi semiconductor belt, has begun to slow, highlighting a divergence in the market.
According to the Korea Real Estate Agency's report on nationwide apartment price trends for the fourth week of July (as of July 27), the average sale price of apartments in Seoul increased by 0.25% compared to the previous week. Although this marks a slight decrease from the previous week's increase of 0.27%, the upward trend remains intact.
The agency noted, "While some cautious sentiment persists, contracts are being signed in preferred areas with development potential and good living conditions, such as large complexes and transit-oriented developments, leading to overall price increases in Seoul."
Regionally, the northern districts of Seoul led the price increases. Jungnang-gu recorded the highest growth rate at 0.53%, followed by Nowon-gu (0.46%), Seongbuk-gu (0.39%), Jung-gu (0.36%), and Gangbuk-gu (0.33%). In contrast, the southern districts, including Gangnam-gu (0.07%), Seocho-gu (0.05%), and Songpa-gu (0.20%), continued to see price increases, but at a more limited pace.
Gyeonggi Province also maintained an upward trend, though with varying rates across regions. Gwangmyeong and Yongin's Giheung-gu both saw significant increases of 0.45%, while Suwon's Gwonseon-gu rose by 0.40%. However, Icheon (-0.15%) and Paju (-0.07%) experienced declines.
Experts have analyzed that the price growth in the residential areas supporting the semiconductor industry in Southern Gyeonggi has somewhat stabilized following the government's lending regulations.
Nam Hyuk-woo, a researcher at Woori Bank's Real Estate Research Institute, stated, "While the residential areas in Southern Gyeonggi, which began in Dongtan, still maintain double-digit growth rates due to expectations of a booming semiconductor industry, the overall price increase trend is slowing down."
However, Yongin's Giheung-gu is noted for its relatively stable performance. Nam explained, "Giheung-gu has many apartments with relatively lower prices, so the impact of reduced loan limits is less severe than in other areas. As a result, genuine demand continues to flow in, and it still maintains double-digit growth rates."
Nationwide, apartment sale prices rose by 0.08%, a slight decrease from the previous week's increase of 0.09%. In contrast, regional prices only increased by 0.01%, with Jeju (-0.08%), North Gyeongsang (-0.04%), South Chungcheong (-0.03%), and Daegu (-0.02%) continuing to show weakness.
Rental prices also continued to rise. The average rent for apartments in Seoul increased by 0.25%, slightly down from the previous week's increase of 0.27%. The Korea Real Estate Agency explained that demand for rentals in preferred areas, such as large complexes and transit-oriented developments, has led to continued rental contracts being signed.
* This article has been translated by AI.
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