In the first quarter of this year, apartment prices in the Songpa District of Seoul recorded the largest increase nationwide. This is analyzed to be due to the lifting of the land transaction permit area for the Jamsam-Daechung area (Jamsil, Samsung, Daechi, and Cheongdam-dong) for one month in February.
According to the Korea Real Estate Board's nationwide housing price trend survey on the 20th, apartment prices in the Songpa District of Seoul rose by 4.28% in the first quarter of this year. This is more than four times the average increase rate in Seoul (1.06%), marking the highest increase among all apartments in city and county districts nationwide.
Apartment prices in Gangnam and Seocho districts rose by 3.52%, recording the second highest increase in the nation after Songpa District.
The significant rise in apartment prices in the Gangnam 3 Districts (Gangnam, Seocho, Songpa) was influenced by the lifting of the land transaction permit area. Oh Se-hoon, the Mayor of Seoul, indicated the possibility of lifting the land transaction permit area in Gangnam on January 14 and subsequently lifted the permit area on February 13 for the Jamsil, Samsung, Daechi, and Cheongdamdong areas, causing a rapid increase in apartment prices, particularly in the Gangnam 3 Districts. As apartment prices surged, the Ministry of Land, Infrastructure and Transport and the Seoul City government reassigned the land transaction permit system on the 24th of last month.
The monthly increase was greatest in March, when the land transaction permit system was lifted. In the case of Songpa District, the increase expanded to 2.63% in March after 0.26% in January and 1.35% in February. Gangnam District also saw increases of 0.04%, 0.83%, and 2.62%, with the rise becoming more pronounced in March. Seocho District recorded increases of 0.18%, 1.00%, and 2.31%.
Excluding Gangnam, Seoul showed strength in maintenance project areas, including Mapo, Yongsan, and Seongdong districts. Apartment prices in Seongdong District rose by 1.34% in the first quarter of this year. Additionally, Yongsan District rose by 1.27%, Yangcheon District by 1.13%, Mapo District by 1.09%, and Gangdong District by 1.07%, with five districts surpassing the average increase rate in Seoul.
However, as apartment prices rose in these areas, the polarization with regions like Gangbuk has intensified. Areas such as Nowon (-0.23%), Dobong (-0.17%), Gangbuk (-0.11%), Jungnang (-0.12%), Geumcheon (-0.11%), Dongdaemun (-0.09%), Guro (-0.07%), and Eunpyeong (-0.05%) experienced some price increases in March due to the anticipatory sentiment following the lifting of the Gangnam land transaction permit area, but recorded declines on a quarterly cumulative basis.
In Gyeonggi Province, apartment prices in Gwacheon City rose by 3.41% in the first quarter, ranking fourth in the national increase rate among city and county districts following the Gangnam 3 Districts. Gwacheon City is close to Gangnam and was influenced by the lifting of the Gangnam land transaction permit. Additionally, the preference for newly constructed apartments contributed to a higher increase rate (2.73%) in March than the Gangnam 3 Districts.
Seongnam's Bundang District, benefiting from developments in the first-generation new town maintenance project, also rose by 0.43% in March after declines in January and February due to the influence of the lifting of the Gangnam land transaction permit. The increase was 0.25% on a quarterly basis.
As a result of the lifting of the Gangnam land transaction permit, the transaction volume of apartments in Seoul as of March 20 reached 8,991. Following the expansion of the land transaction permit system, transactions significantly decreased in the Gangnam 3 Districts and Yongsan District; however, considering that the transaction reporting period remains open for about ten days until the end of this month, it is expected that the March transaction volume will increase to around 10,000.
If that happens, it will surpass last year's July transaction volume (9,223) and record the highest transaction volume since July 2020 (11,143) in four years and eight months.