Apartment prices in Seoul increased more in August compared to the previous month. However, the outlook index for future price increases has fallen for two consecutive months, indicating a divergence between actual price trends and market sentiment. In Gyeonggi Province, areas such as Suwon's Yeongtong District, Yongin's Suji District, and Hwaseong's Dongtan District, known as the 'semiconductor belt,' led the price increases.
According to the 'August National Housing Price Trends' report released by KB Kookmin Bank on August 23, the national housing sales price index rose by 0.27% as of August 10 compared to the previous month. By housing type, apartments increased by 0.41%, while multi-family homes rose by 0.09%, and single-family homes remained unchanged.
In the metropolitan area, prices rose in all regions: Seoul by 0.75%, Gyeonggi by 0.62%, and Incheon by 0.04%. Among the major cities, Ulsan and Daejeon saw increases of 0.40% and 0.05%, respectively, while Daegu, Busan, and Gwangju experienced declines of -0.07%, -0.05%, and -0.03%.
Seoul's apartment sales prices rose by 1.14%, a slight increase from last month's 1.05% rise.
The increase in the northern part of Seoul was particularly notable. Jungnang District saw a 2.25% increase, marking the highest growth rate in Seoul for two consecutive months. This was followed by Seongbuk District at 2.08%, Nowon District at 1.95%, Jongno District at 1.94%, Gangseo District at 1.86%, Guro District at 1.81%, and Dongdaemun District at 1.68%.
In Gyeonggi Province, apartment prices rose by 0.83%. Although this was a slight decrease from last month's 0.87%, the strength in the southern region continued. Yeongtong District in Suwon saw the largest increase at 2.85%, followed by Suji District in Yongin at 2.76%, Dongtan District in Hwaseong at 2.61%, and other areas such as Jangan District in Suwon at 2.54%, Gwangmyeong at 2.26%, Byeongjeom District in Hwaseong at 2.14%, and Seongnam's Sujeong District at 1.91%.
Notably, the southern Gyeonggi region has maintained its upward trend even after a sharp rise last month. In July, Dongtan District in Hwaseong recorded the highest increase in the country at 6.25%, while Yeongtong District in Suwon rose by 3.06%. This month, while the increases in Dongtan and Yeongtong have slowed, Suji District in Yongin and Jangan District in Suwon have seen larger gains.
Conversely, some areas in Gyeonggi Province showed weakness. Ilsan-seo District in Goyang and Icheon both fell by -0.92%, while Ilsan-dong District in Goyang dropped by -0.37%, Manseong District in Hwaseong by -0.23%, Ojeong District in Bucheon by -0.18%, Paju by -0.11%, and Ansung by -0.07%. This indicates a growing disparity in price trends even within the metropolitan area.
The rental market also continued its upward trend. Nationally, housing rental prices rose by 0.30% compared to the previous month. In the metropolitan area, prices increased by 0.68% in Seoul, 0.52% in Gyeonggi, and 0.20% in Incheon. Nationally, apartment rental prices rose by 0.45%, with Seoul's apartment rental prices increasing by 1.10%. However, the increase in Seoul's apartment rental prices was lower than last month's 1.34%.
Market sentiment appears somewhat disconnected from actual price trends. The national sales price outlook index fell by 0.6 points to 107.2 compared to the previous month. In Seoul, the sales price outlook index dropped by 6.2 points to 117.8. Although the index remains above the baseline of 100, indicating a prevailing expectation of price increases, it has declined for two consecutive months.
The rental price outlook index rose by 0.5 points to 120.5 nationally compared to the previous month. In Seoul, it fell by 0.5 points to 135.6 but remains at a high level. Gyeonggi and Incheon saw increases to 128.2 and 123.4, respectively, compared to the previous month.
The KB Leading Apartment Price Index rose by 0.20% to 99.4 compared to the previous month. Prices for high-end apartment complexes have risen for three consecutive months since June, although the rate of increase has slowed from last month's 0.38%.
A real estate industry official stated, “Following discussions on government supply measures and tax reforms, buyers are adopting a wait-and-see approach, while some areas in the outskirts of Seoul and southern Gyeonggi are experiencing price increases due to actual demand and development expectations.”
* This article has been translated by AI.
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