This week, apartment prices increased significantly in most areas of Seoul, including the three districts of Gangnam. The increase rates in Gangnam, Seocho, and Songpa were the largest in over seven years since January 2018.
According to the 'Weekly Apartment Price Trends for the Third Week of March (as of the 17th)' released by the Korea Real Estate Agency on the 20th, Seoul's apartment prices rose by 0.25%, an increase from the previous week (0.2%). Of the 25 autonomous districts, prices in 24 districts rose compared to the previous week, with the exception of Guro-gu (0.00%).
Among the three districts of Gangnam, Gangnam-gu saw a concentration of purchases mainly in the Apgujeong and Daechido complexes, rising by 0.83%. Songpa-gu increased mainly in the Jamsil and Sincheon areas, while Seocho-gu rose predominantly in the Jamwon and Banpo-dong areas. Songpa-gu increased by 0.79%, and Seocho-gu rose by 0.69% compared to the previous week. This is the highest increase rate for Gangnam-gu since its rise of 0.98% in January 2018. Songpa-gu also recorded its highest increase rate since achieving a rise in the 1% range on a weekly basis in January 2018, and Seocho-gu recorded the largest increase since that same time.
Mapo rose by 0.29%, Yongsan by 0.34%, and Seongdong by 0.37%. All three districts saw an increased rate compared to the previous week. Additionally, Yangcheon (0.32%) and Gangdong (0.28%) also experienced larger increases than the prior week.
In areas identified as weak in housing prices, such as Nowon and Dobong, the increase rates also rose compared to the previous week. Nowon, which had no price change the previous week, rose by 0.01%. Dobong, which had increased by 0.01% the prior week, rose by 0.03%. Gangbuk maintained a 0.03% increase similar to the previous week. Geumcheon increased by 0.01%, Gwanak by 0.05%, and Guro remained unchanged at 0.00%, transitioning from a previous increase of 0.02%.
The Korea Real Estate Agency noted, "There has been a steady increase in purchase inquiries centered on preferred complexes like those near subway stations, newly built buildings, and large complexes, as well as a rise in sellers’ hoped-for prices due to expectations of price increases, leading to continued overall increases in Seoul."
Yang Ji-young, head of the asset management consulting team at Shinhan Investment Corp., explained, "As the tax burden for owning multiple properties in the Gangnam area has increased, demand for 'a strong single unit' has risen, along with an increased learning effect that only the prices of popular, quality complexes are rising. The city's policies, such as the relaxation of land use regulations and reductions in benchmark interest rates, seem to have also influenced the increase in housing prices in the Gangnam area."
The metropolitan area rose by 0.07%, a larger increase than the previous week (0.05%), while the provinces saw a decrease from -0.05% to -0.04%, signaling a reduction in the rate of decline. National apartment prices increased by 0.02%, shifting from a stable position last week to a rise.