The housing transactions in the traditionally weak areas of Nowon, Dobong, Gangbuk, Geumcheon, Gwanak, and Guro in Seoul are showing an upward trend. The average sale price in these six districts last month has turned upward for the first time in three months. The effects of the lifting of the land transaction permit system are spreading to this area.
According to Real Estate R114, the average sale price per household for apartments in Seoul last month was 1.39669 billion won, up 0.76% from the previous month. Compared to the same period last year, this represents an 8.7% increase.
Earlier, on the 12th of last month, the Seoul Metropolitan Government lifted the designation of land transaction permit zones for 291 apartments in Jamsil-dong, Songpa District, and Samseong, Daechi, and Cheongdam-dong in Gangnam District, near the international exchange complex for the first time in five years.
The average sale price in the six districts of Nowon, Dobong, Gangbuk, Geumcheon, Gwanak, and Guro last month was 699.26 million won, rising by 0.18% compared to the previous month, marking an increase for the first time in three months. The area that saw the highest increase compared to the previous month was Gwanak District (807.2 million won), which rose by 0.69%.
Following that, Gangbuk (671.1 million won) rose by 0.48%, Dobong (605.45 million won) by 0.23%, and Guro (789.16 million won) by 0.16%. Geumcheon (659.87 million won) and Nowon (660.27 million won) saw declines of 0.06% and 0.13%, respectively. However, all six districts increased by an average of 2.68% compared to the same period last year.
There is also an interpretation that the heated real estate market in the Gangnam area, fueled by the lifting of the land transaction permit zone, is gradually spreading to non-Gangnam areas. Following the additional interest rate cuts by the Bank of Korea last month, alongside those in October and November of last year, expectations for reduced loan rates have also increased.
Yoon Ji-hae, the chief research officer at Real Estate R114, said, "The areas of Nowon, Dobong, Gangbuk, Geumcheon, Gwanak, and Guro were most sensitive to interest rates. With expectations for interest rate cuts, and with political instability expected to ease by March, these factors are contributing to the increase."